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…
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…
PERSONAL INJURY SETTLEMENTS – PLAINTIFFS AGE 65 OR OLDER
by Thomas D. Begley, Jr., CELA Many plaintiffs in personal injury actions are receiving means-tested public benefits such as Supplemental Security Income (SSI), Medicaid, Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps), Federally-Assisted Housing, Adoption Assistance, Temporary Assistance for Needy Families (TANF), and Low-Income Home Energy Assistance Program (LIHEAP). These benefits are means-tested. Typically, the…
Making Special Needs Trusts Last
By Thomas D. Begley, Jr., CELA When a personal injury victim receives a settlement, one of the biggest post-settlement problems is making the money last. If the plaintiff is receiving means-tested public benefits, the monies must be put in a Special Needs Trust. How long do the beneficiary and other family members need that money…