Although the personal injury settlement planning profession now offers plaintiff attorneys, and its own members, an increasing variety of educational resources, few guides to regulatory compliance currently exist – and those that do tend to be specialized. Robert Wood has authored definitive legal textbooks about “Taxation of Damage Awards and Settlement Payments” as well as “Qualified...
Catastrophic Injury A mother and her five-year-old son were in a car accident in 2018 and both suffered extensive injuries. The mother sustained multiple broken bones, including several ribs. The child was in critical condition with injuries that required him to be placed into a medically-induced coma. Ultimately the five-year-old needed multiple surgeries to correct...
The COVID-19 pandemic and near zero long term Treasury rates have required both structured settlement professionals and settlement planners to re-think how they market and how they sell structured settlement annuities. Serena Fitchard, nicely summarized a more expansive structured settlement sales approach during a recent National Structured Settlement Trade Association (NSSTA) webinar: “structured settlements serve a greater...
When a person recovers money for a tort injury committed by another person, an historic source of exclusion of that recovery from income tax is Section 104(a)(2) of the Internal Revenue Code. The current version of this exclusion exempts from federal income tax: “the amount of any damages (other than punitive damages) received (whether by suit...
For so many people starting a business and watching it succeed through hard work, courage, and a little bit of luck is the American dream. This certainly embodies the journey our team at Independent Life has experienced. As a result of those factors and the growing support of settlement professionals and attorneys across the country,...
IRC vs. SSA Every structured settlement and settlement planning professional is presumably well-familiar with the Internal Revenue Code definition of Gross Income in IRC 61 as well as the exclusion for periodic payments in IRC 104(a)(1) and (2), plus many other Internal Revenue Code Sections (130; 468B; 5891) and tax concepts (constructive receipt; economic benefit) that have become the foundation...
Medicare Set-Asides A self-insured municipality referred a case involving a 54-year old police officer who sustained catastrophic injuries attempting to take a suspect into custody. The Case The police officer received conservative treatment initially and eventually underwent multiple surgeries to aid his recovery. After his surgeries, complications arose, and he was living in constant...
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Any discussion of taxes herein is for general informational purposes only and does not purport to be complete or cover every situation. Independent Life, its affiliates, its distributors, and its and their respective representatives do not provide tax, accounting, or legal advice. You should confer with your qualified legal, tax and accounting advisors based on your particular circumstances. All guarantees are obligations of Independent Life Insurance Company.
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