FILE - In this Dec. 13, 2004 file photo, Jack Whittaker heads toward the Putnam County Judicial Annex in Winfield, W.Va. Whittaker won the $315 million Powerball jackpot in 2002, but fell victim to scandals,... (Associated Press) 
 
 With a half-billion-dollar multistate lottery jackpot up for grabs, plenty of folks are fantasizing about how to spend the money. But doing it the right way _ protecting your riches, your identity and your sanity _ takes some thought and planning. 
 
 Making sure you don't blow the nation's largest-ever lottery jackpot within a few years means some advice is in order before the Mega Millions drawing Friday, especially if you're really, really, really lucky. 
 
 Q: What do I do with the ticket? 
 
 A: Before anything else, sign the back of the ticket. That will stop anyone else from claiming your riches if you happen to drop it while you're jumping up and down. Then make a photocopy and lock it in a safe. At the very least, keep it where you know it's protected. A Rhode Island woman who won a $336 million Powerball jackpot in February hid the ticket in her Bible before going out to breakfast. 
 
 Q: What next? 
 
 A: Relax; breathe; take time to think about your next move. Don't do anything you'll regret for the next 30 years, like calling your best friend or every one of your aunts, uncles and cousins. It doesn't take long to be overwhelmed by long-lost friends, charities and churches wanting to share your good fortune. You've waited a lifetime to hit the jackpot; you can wait a few days before going on a spending spree. 
 
 Q: So whom should I tell first? 
 
 A: Contacting a lawyer and a financial planner would be a lot wiser than updating your Facebook status. Make sure it's someone you can trust and, it's hoped, dealt with before. If you don't have anyone in mind, ask a close family member or friend. Oklahoma City attorney Richard Craig, whose firm has represented a handful of lottery winners, says it's essential to assemble a team of financial managers, tax experts, accountants and bankers. 
 
 Q: Remind me, how much did I win? 
 
 A: As it stands now, the Mega Millions will pay out a lump sum of $359 million before taxes. The annual payments over 26 years will amount to just over $19 million before taxes. 
 
 Q: How much will I pay in taxes? 
 
 A: This partly depends on where you live. Federal tax is 25 percent; then there's your state income tax. In Ohio, for example, that's another 6 percent. And you might need to pay a city tax depending on the local tax rules. So count on about a third of your winnings going to the government. 
 
 Q: Should I take the cash payout or annual payments? 
 
 A: This is the big question, and most people think taking the lump sum is the smart move. That's not always the case. First, spreading the payments out protects you from becoming the latest lottery winner who's lost all their money. Don McNay, author of the book "Son of a Son of a Gambler: Winners, Losers and What to Do When You Win the Lottery," says nine out of 10 winners go through their money in five years or less. "It's too much, too fast," he says. "Nobody is around them putting the brakes on the situation." 
 
 Q: But what if I'm good at managing the money? 
 
 A: Invested properly, the lump sum option can be a good choice. There's more planning that you can use to reduce estate taxes and other financial incentives. Others, though, say that with annual payments, you are taxed on the money only as it comes in, so that will put you in a lower tax bracket rather than taking a big hit on getting a lump sum. And you still can shelter the money in tax-free investments and take advantage of tax law changes over the years. 
 
 Q: Should I try to shield my identity? 
 
 A: Absolutely. This will protect you from people who want you to invest in their business scheme or those who need cash in an emergency. Lottery winners are besieged by dozens of people and charities looking for help. "There are people who do that for a living. Unless you understand that, you can become a victim very quickly," says Steve Thornton, an attorney in Bowling Green, Ky., who has represented two jackpot winners. 
 
 Q: So how can I protect myself? 
 
 A: Again, it somewhat depends on where you live. In Ohio, you can form a trust to manage the money and keep your winnings a secret. In other states, you can form a trust but still be discovered through public records. And a few states require you to show up and receive your oversized check in front of a bunch of cameras, making it impossible to stay anonymous. Thornton set up a corporation in the late 1990s to protect the identity of a client in Kentucky who won $11 million. "No one had done this before, and there were legal questions about whether a corporation can win," he says. "We were able to hide their names." 
 
 Q: Is it OK to splurge a little? 
 
 A: Sure, it's why you bought a ticket, right? "Get it out of your system, but don't go overboard," McNay says. But remember that if there's a new Mercedes-Benz in the driveway, your neighbors will probably be able to figure out who won the jackpot. 
 
 Q: How much should I help my family and others? 
 
 A: It's certainly a natural desire to help relatives in need and take care of future generations. But use extreme caution when giving out your money. Jack Whittaker, a West Virginia contractor who won a nearly $315 million Powerball jackpot in 2002, quickly fell victim to scandals, lawsuits and personal setbacks. His foundation spent $23 million building two churches, and he's been involved in hundreds of legal actions. "If you win, just don't give any money away, because the more money you give away, the more they want you to give. And once you start giving it away, everybody will label you an easy touch and be right there after you. And that includes everybody," Whittaker said five years ago. 
 
 ___ 
 
 Associated Press writer Vicki Smith in Morgantown, W.Va., contributed to this report. ||||| The logic seems sound: The more lottery tickets you buy, the better your odds of striking it rich. 
 
 So when the Mega Millions jackpot hit a record $540 million Thursday, it was only natural for some Houstonians to pool their resources with friends and colleagues to buy as many tickets as possible. After all, there are plenty of millions to go around. The more the merrier. 
 
 Gary Grief, executive director of Texas Lottery Commission, said he encourages pools, provided that, as with all lottery wagering, they are conducted responsibly. 
 
 "My advice is to formalize those agreements unless you are dealing with people you completely trust - and trust, potentially, with hundreds of millions," said Grief, who also serves as lead director of Mega Millions. 
 
 Six construction workers in New Jersey learned that lesson the hard way. 
 
 The co-workers had pooled their money for years to play the lotto. They relied on one member of their group, Americo Lopes, to purchase the tickets. In November 2009, one of the tickets he bought hit the $38.5 million jackpot. Lopes cashed it without telling his co-workers, and walked away with more than $17 million in one lump sum after taxes. 
 
 Lopes later claimed he bought the winning ticket with his own money, not funds collected from the group, but on March 14 a Union County jury ruled that he had cheated his co-workers out of their fair shares. The jury ordered Lopes to share the jackpot. 
 
 "Money can make people do some really funny things," said Joseph Gagnon, a Houston attorney who specializes in management, labor and employment matters. 
 
 There is nothing illegal about office pools to buy lotto tickets because lotteries are sanctioned by the government, Gagnon said. But he recommended using common sense and caution. 
 
 Make copies 
 
 It's a good idea to make copies of tickets and distribute them to pool participants before the drawing, Gagnon said. That way, everyone knows what the numbers are. People also can sign a written agreement naming the participants in the pool, how much they're going to contribute, and how the group will divide the proceeds if they win. 
 
 "You never think about these things until after you won," Gagnon said. "That's the problem, and that's what makes the litigation necessary." 
 
 Even if everyone in a winning pool is trustworthy, what happens to the unlucky folks in the office who didn't join in? 
 
 In 1997, almost half the staff in the Dallas County public defender's office won a $45 million jackpot. Twenty-three co-workers received $56,000 a year for 25 years after taxes. 
 
 The other half of the office got nothing, including lawyer John McLauchlan. 
 
 "The first couple days after it happened, my stomach hurt," he told the Chronicle at the time. 
 
 Texas has participated in Mega Millions for about 10 years, and has had eight jackpot winners. The biggest haul - $144 million - went to William Kiefer of Katy in January 2010. 
 
 The drawing for the current $540 million jackpot is Friday evening. 
 
 Reporter Carol Christian contributed to this article. 
 
 lindsay.wise@chron.com
– You're probably not going to hit the jackpot in tonight's $540 million Mega Millions drawing—but what if you do? First of all, if you bought a bunch of tickets with a pool of co-workers or friends, you might want to take a moment to write up a formal agreement before the 11pm ET drawing, the Houston Chronicle reports. Another good idea: distribute photocopies of the tickets to each pool member. "You never think about these things until after you won," one attorney says. "And that's what makes the litigation necessary." The AP offers more tips for after you win: DO sign the back of the ticket, make a copy, and hide it or lock it up somewhere safe. DON'T call everyone you know to tell them the good news—soon you'll be overwhelmed with people hoping to share in your newfound riches. DO get in touch with a lawyer and a financial planner—preferably people you trust. Can't think of anyone? Ask a trusted family member or friend for a recommendation. DON'T make your identity public if you don't have to. Depending on where you live, you may be able to form a trust and keep your identity private. DO think long and hard about whether to take the lump sum ($359 million before taxes) or the annual payments (about $19 million per year, before taxes, for 26 years). There are benefits and drawbacks to both, and the final decision will likely depend on how good you are at managing money—and what your tax advisor says. DO splurge a bit—but if you're trying to keep your winnings under wraps, you may not want to park your new Porsche out front. After all that, a reality check: Click to see why you're not going to win.