MEDICARE SET-ASIDE ARRANGEMENTS
by Thomas D. Begley, Jr., Esquire, CELA In addition to any claim for reimbursement for the conditional payment of past medical expenses, Medicare also has a right to consideration for the Medicare beneficiary’s future medical expenses. Unless adequate funds are set-aside in a suitable arrangement, Medicare will not pay that person’s future medical bills. A…
INCOME TAXATION IN PERSONAL INJURY CASES
by Thomas D. Begley, Jr., Esquire, CELA Generally, personal injury damages are excludable from taxation.[1] The Code deals with compensation for injuries and sickness and states, “[i]n general, gross income does not include the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or…
TAX ISSUES IN PERSONAL INJURY RECOVERIES
by Thomas D. Begley, Jr., Esquire, CELA Origin of the Claim Test The determining factor as to how a litigation settlement or award will be treated for tax purposes is the origin of the underlying claim. The Supreme Court has held, “[t]he origin and character of the claim with respect to which an expense…
THE PERSONAL INJURY ATTORNEY’S GUIDE TO MEDICAID
by Thomas D. Begley, Jr., Esquire, CELA There are many pathways to Medicaid in New Jersey. Each one has different income requirements and resource limits, some have transfer of asset penalties, some require disability, and some require that a personal injury settlement be placed in a Special Needs Trust to maintain eligibility while…