ITEM PHOTO BY OWEN O’ROURKE
Stephen Farrar, a certified public accountant in Marblehead. On the computer screen is Attorney Andrew Christensen, left, and Farrar with the first winning $15 million scratch ticket.
BY THOR JOURGENSEN
MARBLEHEAD — When a Salem store sold a $15 million grand-prize Lottery ticket in 2014, it wasn’t the lucky winner who went to collect the prize money. It was Marblehead financial planner Stephen Farrar and local attorney Andrew Christensen.
Acting as trustees for the winner, the pair collected the lottery winnings and deposited them into a trust account set up for the lucky and completely anonymous individual.
“We physically went down to collect the winnings and deposit them into a trust. My client was completely invisible. No one ever knew his name, ” Farrar said.
Farrar, who is also a certified public accountant, said the man who bought the winning scratch ticket at Nicole’s Food Store remains anonymous today because he sought out and followed professional financial advice.
With $800 million up for grabs in tonight’s Powerball drawing with — according to the Massachusetts Lottery — a $496 million cash option, a potential winner or winners needs a lot of advice, said local experts.
“Your whole life is changing financially. You have no idea what that means,” warned Lynn estate planner Robert Bradley.
Bradley recommended big Lottery prize-winners — especially the person who manages to win the historic Powerball payout tonight — seek out a financial adviser and check to make sure the one they pick has professional certifications.
He said instant millionaires need to juggle financial considerations, including estate planning, tax ramifications and investment strategies.
“Obviously, anyone who is a winner needs a very reputable financial planner,” Bradley said.
Farrar said the first rule of winning the Lottery is to never claim the prize “in your name.” That’s why the $15 million winner he represented sought out professional advice and set up a trust.
Winners who fail to heed this rule, Farrar said, broadcast a “come and get me” message to a wide range of people seeking a quick financial opportunity.
“It’s the worst thing you can do,” he said.
Preparation, said Marblehead resident Bradley, is the key to managing staggering amounts of money. One of the considerations winners must bear in mind is having “the right people” in place to manage their money in the event that they are disabled.
“You want it to end up going to who you want it to go to,” he said.
Farrar has additional advice for mega winners: Pay off all debt; buy everything with cash; set up a savings plan and invest wisely. Bradley and Farrar said there is no chance they will win Powerball tonight because they don’t play the Lottery.
“There’s only one winner: The government,” said Farrar.
Thor Jourgensen can be reached at [email protected].
