Death and Damages Can Be Taxing
In many personal injury cases, and especially those involving large sums of money or actions brought by personal injury victims’ beneficiaries, both income tax and estate tax can significantly change the net value of an award or settlement. Some may be surprised to learn that even personal physical injury damages can result in tax liability as a result of the estate tax. This article explains how the income tax and estate tax impact awards and settlements, including structured settlements, and includes a reference table for practitioners.
This article first appeared in Trusts and Estates Magazine.