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record is unclear whether Singer ultimately received the payments
from the trust or directly from the Texas Lottery Commission.
The sale agreements also provided that Mr. Clopton was the sole
owner of the portion of the lottery prize being assigned to
Singer free and clear of any right, interest, or claim of any
other person or entity, and Mr. Clopton had not previously
assigned, pledged, or otherwise encumbered his rights in the
lottery prize. Finally, the sale agreements stated:
1) The lottery law in Texas has been interpreted as
not permitting voluntary assignments of lottery prize
payments. However, the lottery law does not prohibit
the voluntary assignment of a beneficial interest in a
trust. The record owner of the Lottery Prize is the
June 4th Lottery Trust. Lottery Winner [Mr. Clopton]
is a beneficiary of the June 4th Lottery Trust and
desires to assign his entire beneficial interest in
said trust to Purchaser [Singer].
The right to receive the 2020 and 2021 payments was not sold or
assigned.
On August 4, 1999, the parties to the sale agreements filed
with the Probate Court for Travis County, Texas (Travis County
Probate Court), a joint petition for a declaratory judgment
allowing Mr. Clopton to assign all or a portion of his beneficial
interest in the trust. On October 5, 1999, the Travis County
Probate Court issued a final declaratory judgment (the
declaratory judgment) allowing the assignment of Mr. Clopton’s
beneficial interest in the trust for the years 2000 through 2019.
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Last modified: May 25, 2011