What if it really was YOU who scooped a jackpot?

Lottery advisers share their secrets on how to handle even a modest windfall

We’Ve all imagined the moment: the lottery numbers are in and, one by one, you check them off . . . eureka! you’ve only gone and scooped the jackpot!

But, after you’ve cracked open the bubbly, what happens next?

Sports cars, luxury homes and lavish holidays are now within reach, but what is the smart way to handle such a life-changing windfall?

That’s where Camelot’s team of financial gurus step in to help. But what exactly is their advice for those who have come into sudden wealth?

even if you haven’t become an overnight millionaire, but perhaps have received an inheritance or had a payout from Premium Bonds, regular investors could still learn from their tips.

Lucky lottery winners have to wait just two days before getting their hands on their multi-million-pound fortune.

Insiders say that, in the first months of being handed the cash, most are in deep shock, too scared to spend it.

Around 250 people win more than £1 million every year — the amount needed to qualify for the Camelot lottery winners’ support service.

Two weeks after landing the big payout, the lucky ticket holder is invited to a meeting with a solicitor, a financial planner and a senior lottery adviser, such as Andy Carter.

Mr Carter says: ‘When someone comes into money, everyone from their family to the next-door neighbour and the man down the pub becomes an expert: “Invest in property, hold stocks, keep cash.”

‘They need real advice — and that’s why I’m here: to help them get it.’

Camelot works with a panel of large law and investment firms that have a great deal of experience advising people with vast wealth.

Around 95 pc of winners agree to go along to the free-of-charge meeting with a solicitor and a financial adviser from the panel who live closest to them.

‘There is usually a lot of emotion in the meeting,’ says Mr Carter. ‘These people have just come into extreme wealth and, by and large, they want to protect it.’

Winners find out about the benefits of holding their money in a trust, so that they can retain control of funds they have set aside for relatives.

They are told about the importance of making a will and how they will now be affected by inheritance tax — perhaps for the first time.

Advisers also discuss the tax implications of handing over money and assets to loved ones and why they should register a lasting power of attorney, which allows a trusted relative or friend to make financial decisions on their behalf should they become unable to do so.

This advisory meeting can last for up to two hours and the

decision to act on the advice is in the hands of the winner.

Bournemouth-based Graham Dixon, financial planner for Tilney, has been advising lottery winners for 12 years and sees one every two to three months.

The largest win dealt with by his office was £12 million.

‘I start by telling them to have a millionaire experience,’ says Mr Dixon. ‘Go on a round-theworld trip, buy the car you’ve dreamed of, get the motorbike.’

Then it is time to build up a lifetime financial plan that will provide an income for the rest of their days. Sensible measures, such as paying off debts, are usually one of the first steps.

After that, he establishes whether or not they want to give up work and if they have any health issues that may shorten their lives. The plan shows how much can be spent or given away over a lifetime, while still maintaining lifelong financial security. Winners are asked to fill in a questionnaire to find out with what level of risk they are comfortable.

Someone who wants no risk at all can keep their winnings in Premium Bonds, an NS&I savings account, or a bank or building society account.

NS& I can be better suited to lottery winners because the whole balance is protected by the Government.

If the money is in a bank or building society, only £85,000 is protected by the Financial Services Compensation Scheme if the institution goes bust.

Investors who are happy with a medium level of risk can build up a balanced portfolio, covering a range of asset classes.

Tilney would recommend a combination of equity funds, Government fixed-interest accounts, gold, commercial property and absolute return funds. The latter aim to deliver positive returns in any economic conditions.

Only when the winner takes up the investment advice, or, for example, sets up a trust, do they have to pay for the service. Then it’s on to the fun part of the meeting — their spending ambitions. Mr Dixon says: ‘I use a “what if” test when I talk to winners who are too scared to spend their money on luxury purchases. ‘If they tell me: “I’m not spending more than £ 1 million on a house,” then I say: “What would happen if we lifted that cap to £2 million?” We can then look at what impact that has on the lifetime plan.’ he adds: ‘I met one couple who’d won £2 million. The husband was 70 years old and 20 years his wife’s senior. When they scooped the jackpot, they wanted to spend the next ten years travelling while both of them were still in good health. ‘ The lifetime financial plan revealed a spare £50,000 a year for them to use for holidays.’ When he met them a year later, they explained that — having never had wealth before — they had struggled to spend £50,000 on holidays. But the pair soon got the hang of it. ‘ The last time we met, they told me about their latest holiday — snorkelling in the Caribbean,’ says Mr Dixon. ‘ When they surfaced from the waves, they said, a waiter was waiting for them in the sea with refreshing cocktails. It was lovely to see them settle into their new lifestyle.’ Not everyone chooses to get back in touch with the adviser straight away, however. Mr Dixon says: ‘ One young couple who’d won more than £1 million went on a year-long spending spree — buying cars and a house and holidaying in extravagant locations. ‘After a year, they came back for advice. By that time, to make the money last, they needed to make a lot of compromises.’ his best advice is to take time to make the big decisions. But, it’s a myth, he says, that jackpot winners invariably blow all the money. One couple he advised kept their fortune a complete secret — which is another common trait among lottery millionaires. Just one addition to their home gave their family any hint that their fortunes had changed for the better — a well-stocked cabinet of expensive champagne.