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POST-SETTLEMENT ISSUES IN WRONGFUL DEATH CASES PART 1

by Thomas D. Begley, Jr., Esquire, CELA [Article originally published in The Barrister, Jan 2020] Once a wrongful death case is resolved, a number of post-settlement issues arise.  These issues include:  (1) allocation between the survival claim and the wrongful death claims, (2) public benefit issues, (3) analysis of the need for a Special Needs Trust or…

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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…

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ARE LEGAL FEES IN PERSONAL INJURY RECOVERIES TAX DEDUCTIBLE TO THE PLAINTIFF?

by Thomas D. Begley, Jr., Esquire, CELA [Article originally published in The Barrister, Jan 2020] As a general rule, personal legal fees are not tax deductible, but legal fees in connection with business are deductible.  So, if a client gets divorced, this is personal and the legal fees are non-deductible.  If legal fees are paid in connection…

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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…

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