Personal Injury Cases: Increasing Net Settlements Through Tax Savings

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, May 24, 2022

Recorded event now available

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Course Materials

This CLE webinar will discuss the tax consequences to plaintiffs of personal injury settlements and damages and how knowledge of those tax considerations drives the parties' strategies during the case. The program will guide counsel through the right questions and the right professionals to engage to prevent the client from incurring unnecessary tax liability or inadvertently losing favorable tax treatment. The panel will review how to avoid malpractice and ethical pitfalls and offer insights into the tax considerations of the party paying the settlement.

Description

Too often, the tax ramifications of litigating or settling a case are not considered until after the fact. While awards for some types of damages are not taxable, most are, but telling the difference is not straightforward. After prevailing against a defendant, plaintiffs do not want to battle the taxing authorities.

Counsel should try to structure settlements to obtain the most desirable tax rates or make them tax-free, if possible.

When cases involve multiple parties, complex issues, and many different types of damages, how settlements are structured and worded is paramount. While fewer options exist for managing the tax consequences of a jury award, some strategies can be deployed.

Listen as this preeminent panelist provides crucial guidance in skillfully and efficiently managing tax issues arising in the context of personal injury payments.

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Outline

  1. Taxation of settlement awards
  2. Tax language in settlement agreements
  3. Strategies to make settlements tax-free
  4. Strategies to reduce tax liability

Benefits

The panelist will review these and other key issues:

  • Do personal injury lawyers have a duty to minimize taxation of personal injury settlements?
  • What terms are most hotly negotiated in personal injury settlement and release agreements?
  • Are specific, itemized verdict forms useful in managing the tax consequences of the award?
  • Should cases be planned and litigated with taxes in mind?
  • Which state's tax laws apply to the award?

Faculty

Babener, Jeremy
Jeremy Babener

Special Tax Counsel
Lane Powell

Mr. Babener is a nationally recognized tax attorney who focuses his practice on lawsuit awards, settlements and complex...  |  Read More

Hresko, Deborah
Deborah Hresko, CPA

Tax Manager
C&L Value Advisors

Ms. Hresko has over 20 years of experience as a CPA, beginning her career with KPMG. She advises plaintiffs and...  |  Read More

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