What should you do if you win Lotto?

Powerball has jackpotted to $40 million, but what should you do if you win the big prize?Although the chance of winning is small - about one in 38 million per line, many people will be buying tickets in the hope of being one who beats the odds.RNZ collected some expert advice on what you should do if you strike it lucky.Keep it quietIt may be wise to keep your excitement under wraps.Lotto New Zealand advises: "Be careful who you tell…you can't un-tell them." It says most winners only tell their immediate families.If you win playing online, you'll be given a prize claim form, so it wouldn't be hard to submit your win without being detected.If you have a physical ticket, you can go into a shop to claim, or to Lotto NZ head office if you don't want to be spotted.Don't pay taxA Lotto win is tax-free in New Zealand. You also do not have to pay tax on any amount you give to someone else.If you donate to charity, you may be able to claim a tax credit.Split the win if you're in a syndicateLotto NZ can only pay the prize out to one ticket-holder, so if you're part of a group or syndicate buying together each week, you'll need to arrange for the payment to be distributed.Put it in a savings account or low-risk investment option initiallyLotto NZ advises that you should put your money into an interest-earning bank account so it can continue to grow while you work out what you're going to do for the longer-term Westpac chief economist Kelly Eckhold said he might choose a bond fund as another low-risk option. Lotto NZ says Powerball winners will be given the details of relevant bank staff to help them.Pay off debtIf you have any debt, it will generally make sense to get rid of it.Adviser Tim Fairbrother of Rival Wealth earlier said it would usually be sensible to clear a mortgage because it would make an ongoing difference to a winner's life.InvestEckhold said he would invest most of the money somewhere it would deliver an ongoing income stream, while using the rest to do things such as help family.With $40 million you would have lots of options, and winners are generally advised to seek advice.Kōura founder Rupert Carlyon said he would probably buy a bach and put the rest in a trust for his kids and potential grandchildren."The sad thing is because I am relatively well off, don't have any massive needs for cash right now and understand the odds, I don't go and buy Lotto tickets. In my view Lotto is simply a tax on those people that need a quick win."Fairbrother said people should think about their goals - with the knowledge that what they spent their money on could draw attention."If you're living in a $600,000 home you might want to go and extend the house, build a tennis court and swimming pool, or sell it altogether."How much do you want people to know this has happened to you? If you go and sell your $600,000 house and buy a $4m house, people are going to start asking questions."An investment portfolio would be structured according to a person's wishes, he said.Some might want to invest in commercial property, or a residential development including a number of homes."Or it might be saying I don't want to deal with any of that, I'm just going to put it into a managed portfolio. It's going to be a mix of those things and it's going to be a steep learning curve. You don't need to go about it quickly, there's no point rushing and doing things fast."Knowing the difference would help to make wealth last."I knew of someone many years ago before I was a financial adviser, who won a significant amount in Lotto and basically within three years he had got rid of it all by buying expensive cars and not understanding those expensive cars are going to be depreciating assets."By the time you drive it off the lot it loses 20 percent or whatever, then two or three years later it is down 60 percent."Check your willAs well as investing advice, you may need legal advice to ensure your will is appropriate for your new wealth.Lotto NZ points out that you might reassess whether you still need the insurance you have, such as life insurance or health cover.Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make and spend money