A Kentucky mother and son who won a historic $167.3 million Powerball jackpot now face a major financial decision that could significantly impact their final payout.
Linda Grizzle and her son, Shannon Farthing, beat the staggering odds of 1 in 302.6 million to claim the massive prize. Their win marks the largest lottery jackpot ever recorded in Kentucky’s history.
Shannon bought the winning $2 ticket at a Clark’s Pump N Shop. After checking the numbers, Linda called him with the life-changing news.
“I would have never dreamed it; it hasn’t sunken in yet,” Linda said. “It’s going to be a good Mother’s Day. This is going to pay off my debt.”
The pair must now choose how to receive their winnings—either as a lump sum of about $77.3 million before taxes or in annual payments over 30 years. Those payments would increase by 5% each year.
However, if they opt for the lump sum, they will immediately lose 24%—around $18.5 million—to federal taxes. Additional state taxes also apply. In Kentucky, lottery winnings are taxed at a minimum rate of 4%, further reducing the final amount.
Due to the size of their win, Linda and Shannon may also fall into the highest federal income tax bracket.
They are currently consulting with a financial adviser to determine the best option for managing their prize.
For selling the winning ticket, the Clark’s Pump N Shop store will receive a $37,000 bonus. Mary Harville, president of the Kentucky Lottery, called the win “exciting,” especially since it ended a 14-year wait for another Powerball jackpot winner in the state.
