Mega Millions jackpot: You're probably doing your office lottery pool wrong

DETROIT (FOX 2) - Have your eyes on the big Mega Millions jackpot?

While many people are buying tickets for their shot at the $1.35 billion prize, others have thrown their money into an office pool.

More: Mega Millions drawing nears for $1.35 billion jackpot

Tax attorney and accountant Kurt Panouses explains what participants in office pools must do to protect their assets if they hit it big.

"If you’re going to do it, you got to remember the old adage: ‘Money makes people funny.’ Certainly, what you need to do is have a written document," he said.

This written document should have at least 3-5 pages of specific documentation, including:

• A list for people to sign when they pay
• A designated pool manager — who collects money and posts numbers. (That person must also be exonerated from a potential lawsuit.)
• Rules for how to settle a dispute — whether it’s court, arbitration, or majority vote

You must also make sure you file a 57-54 tax form, if you win.

"If you win, you gotta say, ‘We’re taking it as a lump sum.’ You can’t take an annuity, and I take a lump sum. We’re all taking it the same way. You have to say we’re going to be equal partners," Panouses said.

Be sure to also decide what happens to smaller prizes you may win, such as a $100 prize.

"If you’re going to do it in some form of multiple people, then Michigan law conforms with doing an office pool, doing it as a club of some sort," Panouses said.