INCOME TAXATION OF EMOTIONAL DISTRESS CLAIMS
by Thomas D. Begley, Jr., Esquire, CELA Questions frequently arise with respect to the taxation of emotional distress claims. As a general rule, damages for emotional distress are subject to income tax. However, a careful analysis can result in the elimination of this tax. Emotional Distress Emotional distress has been defined as a highly unpleasant emotional reaction…
Qualified Settlement Funds – Begley Report
by Thomas D. Begley, Jr., CELA WHAT IS A QUALIFIED SETTLEMENT FUND? Section 468B of the Internal Revenue Code[1] authorizes the establishment of Designated Settlement Funds or Qualified Settlement Funds. These funds are usually collectively referred to as Qualified Settlement Funds (QSFs). These funds are also sometimes called 468B Trusts. The purpose of these funds…
Protecting The Home: Using Trusts To Protect Your Home From The Costs Of Long-Term Care – Begley Report
by Thomas D. Begley, Jr., Esquire, CELA INTRODUCTION Studies show that 43% of Americans will spend some time in a nursing home. Seventy percent will require some form of long-term care be it nursing home, assisted living or home care. The cost of this care can range from $20 – $25 per hour or more for home…