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INCOME TAXATION OF EMOTIONAL DISTRESS IN PERSONAL INJURY ACTIONS

by Thomas D. Begley, Jr., CELA General As a general rule, recoveries in personal injury actions are excluded from federal income tax only if they result from a physical injury or physical sickness. The Internal Revenue Code specifically states that “emotional distress shall not be treated as a physical injury or physical sickness.”[1] Emotional distress…

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HELPING YOUR CLIENTS PROVIDE FOR THEIR PETS

by Thomas D. Begley, Jr., CELA Is It Possible for Your Clients to Provide for Their Pets? Many people want to include their pets in estate plans to ensure they will always be secure and receive quality care. While this type of planning is common, it can be fraught with emotion. It is important for…

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DOES IT MAKE SENSE TO TAKE A REVERSE MORTGAGE TO DELAY COLLECTING SOCIAL SECURITY?

By Thomas D. Begley, Jr., Esquire, CELA In August, the Consumer Financial Protection Bureau (CFPB) published an issue brief titled “Issue Brief: The Costs and Risk of Using a Reverse Mortgage to Delay Collecting Social Security.” Many financial advisors recommend that consumers increase their monthly benefits by delaying the date on which they claim Social…

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Vacation Area Homes: Tax and Management Issues

By: Thomas D. Begley, Jr., Esquire, CELA CASE STUDY 1: VACATION HOME—NO ESTATE PLAN Harry and Sally own a vacation home on a barrier island. They purchased the home many years ago for $50,000, and it is now worth $1 million. Harry and Sally have two children and five grandchildren. The children visit the vacation…

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