I like this question. If under the following conditions I could afford to do such, I sure would think about it. However, assuming that the lottery winnings were in the tens of millions, I would do the following:
First, I would pay off all of my bills.
Second, I would place the rest in secured savings accounts. This means NO RISK. Mulitiple accounts will also reduce the risk, so basically I am saying very low interest rates.
Third, I would live off of 90 percent of the earnings of these accounts, reinvesting the 10 percent so that the accounts grow every year.
Fourth, as my income would not be high with these very safe accounts, I would most likely still work. The work I would do would be such that I was able to live decently, if the interest rates were low. I would also work because I think those who do not, end up dieing sooner than those who keep their minds busy with such work.
I would not be giving much more to charity, unless it came from the 90 percent portion of the earnings. This is because I already spend about 50 percent of my life volunteering for the worlds greatest philanthropy.
As you can probably tell, I have thought of this before. The big problem with this all, is that I do not play any lottery. I am too logical, and because of such I will never be a winner of such a big amount of money.
I hope this helps. Again, very interesting question
I own a tax-accounting business.