Eastern Point Trust Company

What’s the “most powerful” of settlement tools? No surprise that USA Today named the Qualified Settlement Fund “because it makes all the others easier to use.” Thanks to our Chief Trust Officer Rachel McCrocklin and Medicare expert ??John V. Cattie, Jr. for serving as expert resources. #Plaintiffs #TrialLawyer #SettlementPlanning #StructuredSettlements https://bit.ly/3SXfbvj

Settlements designated explicitly for medical expenses are generally not taxable. However, if you have previously deducted these medical expenses on your tax return, the corresponding settlement amount will be subject to taxes under the IRS ‘tax benefit rule.’ This rule ensures that you do not receive a double tax benefit by deducting medical expenses and excluding settlement proceeds related to those expenses. #PlaintiffRecoveryTrust #EasternPoint #QSF #Taxes #QualifiedSettlementFund #EasternPoint

Excellent to see Jeremy Babener and Don Engels guest lecturing at U. Chicago Law School on settlement strategies. This is the kind of practical knowledge law students need if they’re on their way to become plaintiff lawyers.

Compensatory damages are typically not taxable when received for claims of physical injuries or physical sickness. This exclusion extends to emotional distress damages resulting from physical injuries or sickness. For instance, if you receive damages for medical expenses, lost W-2 wages, or pain and suffering related to a car accident that caused physical harm, these would generally be tax-free. #QSF #taxes #plaintiffrecoverytrust #easternpointtrust?

Qualified administrators ensure the smooth operation and administration, including asset custody and oversight. Dispelling the fifth myth that qualified settlement funds offer limited tax advantages requires exploration of the tax benefits they present for defendants and plaintiffs. Upon contributing to a QSF, defendants are eligible for an immediate tax deduction, even if the funds have yet to be distributed to the plaintiffs. Plaintiffs can defer taxation on their settlement amounts until distribution. https://lnkd.in/g4M6pvEF #QSF #Taxes #SettlementFunds #PhysicalInjury #QSFs #EasternPoint #TrustCompany

Defendants regularly use Qualified Settlement Funds (QSFs) to skip past issues that they shouldn’t need to consider. Without a QSF, structured settlement language must go in the settlement agreement along with many other terms that don’t affect the defendant. In this Professional Liability Defense Quarterly Article our experts Rachel McCrocklin and Jeremy Babener walk through how defendants can use QSFs to close settlement discussions faster, avoiding delays to their release and deductions. https://bit.ly/QSF-PLDF #Plaintiffs #TrialLawyer #SettlementPlanning

Judicial awards and settlements can be divided into two groups to determine whether the associated payments are taxable or non-taxable. Once funds have been classified into one of these two groups, a further subdivision is made. Proceeds from personal physical injuries or sickness are generally excludable from gross income, but emotional distress recoveries are only excludable if they stem from physical injuries. #QSF #Taxes #SettlementFunds #PhysicalInjury #QSFs #EasternPoint #TrustCompany

This article takes a second look at the critical aspects of a Qualified Settlement Fund, and specifically clarifies the legal and tax implications of its naming. It offers a roadmap for legal practitioners, QSF administrators, and parties involved in a settlement agreement. #QSF #Taxes #SettlementFunds #PhysicalInjury #QSFs #EasternPoint #TrustCompany

CNN walked through several asset protection strategies with Jeremy Donahue. For plaintiffs, a settlement protection trust is often the best option.

Plaintiffs regularly need asset protection for their settlements. Jeremy Babener discussed the topic with CNN, including strategies available to meet those needs. For many, a settlement protection trust is key. Talk with your settlement planner at Society of Settlement Planners, American Association of Settlement Consultants, and National Structured Settlements Trade Association.