wrongful-death settlement, taxes and trusts

[Option_Attack]

18 inch piece of 1/2 inch rebar. Tightly wrap the first 6 inches with duct tape until a nice handle is formed. Leave by the front door. Grab it when walking outside and apply firmly and repeatedly to the head(s) of attacking dog(s). Easier to use one-handed than a Louisville Slugger. Cheap and effective and should allow stitches and rabies shots to be avoided.

Regarding civil law suits, all I have to say on this topic is the next time me or a family member gets bit by a large breed dog, the first call is going to be to my lawyer. I have been bitten twice so far, once by a German Shepard that was running loose and the bite required stitches. A couple of months ago I was bitten about eight inches from my crotch by a pitbull mix...my dog was also attacked by the lady's Husky and required surgery. Both dogs came darting out of the house because the neighbor left the door open. At one point I had both dogs circling me...in was crazy! I am thankful my six year old was able to escape on his bike. Turns out the pitbull mix had previously attacked another neighbor which resulted in 38 stitches to patch up her arm. Apparently the dog was her son's ex-girlfriend's and the dog conveniently disappeared after the attack. Sure, my medical bills were covered in both incidents but I am not going to be so nice the next go around.

 

[fan27]

18 inch piece of 1/2 inch rebar. Tightly wrap the first 6 inches with duct tape until a nice handle is formed. Leave by the front door. Grab it when walking outside and apply firmly and repeatedly to the head(s) of attacking dog(s). Easier to use one-handed than a Louisville Slugger. Cheap and effective and should allow stitches and rabies shots to be avoided.

My solution is a bit more light weight but should do the trick.

 

[newwurldmn]

I think it's one off those things that appears much worse than it does precisely because of the infrequency of the huge awards. Kind of like how an airplane crash that kills 100 is front page news nationwide while100 people die every day in car crashes that seldom make it off page 5 of the local news. If you're got 400+ million people and a jury system you're bound to randomly have a large judgement pop up now and then and it's going to make headlines. But for a given business the chances you'll get hit with one of those is so infinitesimally small that it's really the least of your concerns, right up there with your concern that a car will plow into your office and and lightening striking your company picnic. And that's reflected in liability insurance rates, my company liability insurance is literally less than .1% of my EBITDA. I spend more of coffee for my employees than that, so while like every expense we'd all prefer it was less, it's certainly not even approaching the point of factoring into decision making on the part of entrepreneurs.
Similar argument is randomly made about healthcare, that basically we could "fix" healthcare in the US if only we could eliminate lawsuits. But it turns out the per capita cost of malpractice is between $3 and $36 per year depending on what state you live in (http://truecostofhealthcare.org/malpractice_statistics/ because I don't pull statistics out of my ass) so again an annoying cost we'd prefer to eliminate but doesn't really move the needle in proportion to what some seem to think it does.

I was hit with a racism lawsuit in a very liberal state (probably the most liberal when it comes to employer employee relationship). It was dismissed with a total cost of a few hundred dollars and one hour of one of my hr people. But it’s good that an employee has the ability to file such a complaint as many companies do tacitly discriminate on race or gender.

 

[Option_Attack]

Some would say just pull the shotgun or a 9 and blast 'em, but a sturdy dog wacker is safer around kids, doesn't ricochet and is less likely to invite lawsuits or police scrutiny. And since I had mine the bad dogs might typically run up snarling, but when they see what I have in my hand they back off and just bark. Haven't been attacked by a badass pit tho, so mileage may vary.

My solution is a bit more light weight but should do the trick.

 

[Sig]

I was hit with a racism lawsuit in a very liberal state (probably the most liberal when it comes to employer employee relationship). It was dismissed with a total cost of a few hundred dollars and one hour of one of my hr people. But it’s good that an employee has the ability to file such a complaint as many companies do tacitly discriminate on race or gender.

Yeah, I was involved in a bogus racism grievance from a GS employee back in my government days, an hour of my time and they were fired. For every horror story there are a thousand times the system works just like it should. All what you choose to focus on I guess, being a poor victim terrified of suits or a successful entrepreneur.

 

[GRULSTMRNN]

How do you know they discriminate on race, when they might just discriminate on cultural traits that may adversely affect work performance? Do you believe on average African Americans apply the same work ethics than Asians or Caucasians? On average I stress...

I was hit with a racism lawsuit in a very liberal state (probably the most liberal when it comes to employer employee relationship). It was dismissed with a total cost of a few hundred dollars and one hour of one of my hr people. But it’s good that an employee has the ability to file such a complaint as many companies do tacitly discriminate on race or gender.

 

[Sig]

Ironic we were just talking about his many aliases and he goes and starts with the bigotry that gets him put in the time out corner every time. Not a lot of self awareness there, but then bigots are rather sad people themselves.

 

[GRULSTMRNN]

Cry us a river. Let's create a safe space where any opinion that diverges from yours won't be tolerated.

So anyone is a bigot who claims that women cause more workplace disruption because of maternity leave? Keep in mind there are countries like Japan where people can hardly ever be fired and women get 1 year maternity leave or longer. Guess what happens when a female employee goes on maternity leave. Of course does the company not hire anyone additionally to replace the missing labor. That work has to be done by the rest of the team. Do guys get a year off for a nice sabbatical every now and then where the female employees cover for the missing employee for a year? Are you saying African American operated Starbucks are as efficiently run as under Asian management? Or that African Americans are as flexible when overtime is required as Asians are? Most often businesses that are predominantly operated by Caucasian management are the least racially biased. Ever seen a food franchise that is operated by lndians? Have you ever seen in such franchise a single non Indian employee?

Now I am a racist and misogynist because I point out gender and race differences? You don't seem to complain when I say that African Americans make better BBQ chicken or are better athletes and faster runners. Seems you are mostly biased against Caucasians when it comes to race.

By the way you don't seem to understand the term bigot. It is someone intolerant to other opinions. The only bigot in the room is you here. I never denied your differing opinions something you do all the time.

Ironic we were just talking about his many aliases and he goes and starts with the bigotry that gets him put in the time out corner every time. Not a lot of self awareness there, but then bigots are rather sad people themselves.

 

[briana]

hi, looking for some advice from seasoned folks...

BACKGROUND: my youngest brother was killed in traffic crash in Oregon last year. Estate filed wrongful-death lawsuit. We will be receiving settlement soon.

POSSIBLE SCENARIOS - My dad is listed as "sole heir" in probate proceedings and will receive all funds.

1. he receives funds tax-free in CA. However if he distributes to his 2 remaining sons, they will have to pay taxes on it.

2. he receives funds tax-free in CA. Can he establish trust to send money to and it will be tax-free transfer?

3. set up trust first, then have it receive settlement? Will probably need additional work and some court-appearances.


Would to pick brains of people who've done this kind of work. I have meeting with fee-only CFP in S.F. next week, but would like to be educated as much as possible so I don't have to pay him for lecture & lesson on trusts and settlements.

Thank you.

Dan

hi, looking for some advice from seasoned folks...

BACKGROUND: my youngest brother was killed in traffic crash in Oregon last year. Estate filed wrongful-death lawsuit. We will be receiving settlement soon.

POSSIBLE SCENARIOS - My dad is listed as "sole heir" in probate proceedings and will receive all funds.

1. he receives funds tax-free in CA. However if he distributes to his 2 remaining sons, they will have to pay taxes on it.

2. he receives funds tax-free in CA. Can he establish trust to send money to and it will be tax-free transfer?

3. set up trust first, then have it receive settlement? Will probably need additional work and some court-appearances.


Would to pick brains of people who've done this kind of work. I have meeting with fee-only CFP in S.F. next week, but would like to be educated as much as possible so I don't have to pay him for lecture & lesson on trusts and settlements.

Thank you.

Dan, I’ve been a licensed attorney for nearly 25 years and have settled numerous personal injury wrongful death lawsuits in excess of a million dollars.

First and foremost, do not get information about this matter from this forum as it will more likely than not be wrong. I warn you specifically about gruelstrum, who I have told before that he is no lawyer, as he posts inaccurate information that is misleading and based on opinion and the common sense of a lay person with no legal training. He may be a good trader, I have no idea, but I do know that lawyers don’t commonly give traders advice on trading. He should stick with what he knows and has been trained in.

Next, before you do anything, speak to a personal injury attorney in your state (or the state involved) and a tax lawyer or perhaps a CPA in the same. In all probability, the personal injury lawyer will tell you the answer to your questions but, will advise you to speak to a CPA or tax lawyer as he is not an expert in the field either. (I do this sort of legal work and have never taken a tax class). You should take his advice as you will be stuck with the tax liability after he or she takes the 40% or 33% fee and is off on the next case.

Speak to the tax specialists BEFORE settling the case. If you decide to take the money in an annuity, or perhaps in another financial instrument, to preserve future earnings’ tax free status, you need to decide to do this before taking the money and there needs to be language in the settlement agreement outlining what is going on.

Generally, the proceeds from personal injury damages settlements are tax free because the internal revenue code says so. This includes money paid for past and future lost wages. However, note that claims for gross negligence/punitive damages are not. The lawyer or should know how to handle this in the settlement agreement to at least mitigate the problem.

Further, confidentiality provisions, becoming much more common, can render a tax free settlement partially taxable. (Thank Dennis Roddman for this-do a google search if you are interested). The personal injury lawyer, again, should know how to handle this but many don’t. if they look at you like you are crazy if you mention this, they don’t know their business and you should forcefully make them find out. (Many lawyers have never settled big enough cases where this has been an issue.).

The personal injury lawyer will likely not know for sure the tax ramifications of moving the money through an estate. A CPA/tax lawyer should.

Everything I have written in based on federal and state law in MY state which is not California or Oregon. So check with a lawyer in your state and the states involved.

Good luck.

 

[tommcginnis]

Dan


Dan, I’ve been a licensed attorney for nearly 25 years and have settled numerous personal injury wrongful death lawsuits in excess of a million dollars.

First and foremost, do not get information about this matter from this forum as it will more likely than not be wrong. I warn you specifically about gruelstrum, who I have told before that he is no lawyer, as he posts inaccurate information that is misleading and based on opinion and the common sense of a lay person with no legal training. He may be a good trader, I have no idea, but I do know that lawyers don’t commonly give traders advice on trading. He should stick with what he knows and has been trained in.

Next, before you do anything, speak to a personal injury attorney in your state (or the state involved) and a tax lawyer or perhaps a CPA in the same. In all probability, the personal injury lawyer will tell you the answer to your questions but, will advise you to speak to a CPA or tax lawyer as he is not an expert in the field either. (I do this sort of legal work and have never taken a tax class). You should take his advice as you will be stuck with the tax liability after he or she takes the 40% or 33% fee and is off on the next case.

Speak to the lawyers BEFORE settling the case. If you decide to take the money in an annuity, or perhaps in another financial instrument, to preserve future earnings tax free status, you need to decide to do this before taking the money and there needs to be language in the settlement agreement outlining what is going on.

Generally, the proceeds from personal injury damages settlements are tax free because the internal revenue code says so. This includes money paid for past and future lost wages. However, note that claims for gross negligence/punitive damages are not. The lawyer or should know how to handle this in the settlement agreement to at least mitigate the problem.

Further, confidentiality provisions, becoming much more common, can render a tax free settlement partially taxable. (Thank Dennis Roddman for this-do a google search if you are interested). The personal injury lawyer, again, should know how to handle this but many don’t. if they look at you like you are crazy if you mention this, they don’t know their business and you should forcefully make them find out. (Many lawyers have never settled big enough cases where this has been an issue.).

The personal injury lawyer will likely not know for sure the tax ramifications of moving the money through an estate. A CPA/tax lawyer should.

Everything I have written in based on federal and state law in MY state which is not California. So check with a lawyer in your state and the states involved.

Good luck.

WWWWWOW. THERE'S a refreshing bit of competence. Sheeeesh!