Taxation of Confidentiality Agreements
The taxation of Confidentiality Agreements in personal injury settlements is becoming and increasing concern to plaintiffs and to personal injury lawyers. The issue arises out of a United States tax court case.[1] This case involved an incident in which Dennis Rodman, a basketball player for the Chicago Bulls, during the course of a game against…
Factoring a Structured Settlement
An alternative to commuting a structured settlement is to sell it on the open market. There are a number of companies, including J.G. Wentworth, which will purchase structured settlement annuities. The companies do not buy the structured settlement annuity itself, but rather buy the right to the income stream. These companies pay less than the…
Total Return Trusts: Why Didn’t We
1. INTRODUCTION The total return trust is an idea whose time has come. With the arrival of the Prudent Investor Rule and the development of the modern portfolio theory, Trustees now have great flexibility to invest aggressively and to improve the total return for both income beneficiaries and remaindermen. 2. TRADITIONAL TRUSTS Traditional trusts were…
Is a Medicare Set Aside Arrangement Required in Third Party Liability Cases?
Based on recent federal legislation, it appears that Medicare will soon begin to require set asides for third party liability cases. Historically, these set asides have been required only in Worker’s Comp cases, but it appears that that is all about to change. Under the Medicare Secondary Payer Act[1] and Regulations,[2] Medicare will not pay…