Thanks to our friends and contributors from Bruno | Nalu for their insight into the importance of mini-opening statements.
The first exception is that punitive damages are taxable. Second, any amounts received that are attributable to interest is taxable. Third, if the taxpayer has deducted any of the expenses related to the settlement, the amounts previously deducted are taxable. Finally, any portion of the recovery that is allocated to property damage is taxable to the extent that it exceeds the basis of the damaged property.
For example, say you were dragged off an airplane by security and, as a result of the overly aggressive guards, you banged your head against a seat causing a concussion, broken nose, and your $2,000 laptop was destroyed. A few months later, your personal injury lawyer contacts the airline requesting compensation for your medical bills, emotional trauma, and lost wages from your physical injuries. It agrees to settle after the video of the incident goes viral. The settlement agreement stipulates that you receive $148,000 for medical expenses, pain and suffering and emotional trauma, and $2,000 for your computer. This settlement is 100% tax-free, for federal tax purposes, assuming you have not previously deducted any of the medical expenses.
I’m now going to change the facts a little to show how easy this is to turn into a taxable recovery. Assume the same facts as before, except that the settlement agreement now stipulates that you receive $130,000 for medical expenses, etc.; $10,000 for prejudgment interest; $2,000 for the computer; and $8,000 for the unrecoverable files on the computer. In this example, $18,000 of the settlement is taxable income. This income could have easily been avoided by allocating the interest and lost files to mental anguish; instead, you will have a tax bill on April 15th.
- If a doctor or medical facility turned you away as a patient because you don’t have health insurance, call a medical malpractice lawyer Miami FL relies on to discuss your legal options.
- If your medical condition seriously worsened because you were refused emergency treatment, you may be entitled to compensation for your damages. A personal injury attorney can review your case and offer an opinion as to whether or not you have grounds for a lawsuit.
- Patients are seeking narcotics because they are addicted to that drug
- There is no illness present
- A patient is destructive or dangerous
- The doctor’s office has no openings and is no longer accepting new patients for basic care. (This applies in a non-emergency situation.)
- Emergency rooms and doctors are legally required to see emergency cases before anyone else.
- If you walk into an emergency room with a broken finger and someone else walks in five minute after you with chest pains or a head wound, that person is always a priority.
- Serious injuries always come before lesser injuries, and this sometimes means other patients wait long periods of time to see a doctor.
- Safely pull over to the side of the road and check to see if anyone is injured.
- If the other driver does not stop, try to get the license plate, make and model of the car.
- If there are any injuries, or property damage, call the police to report the accident.
- Exchange insurance information with the other driver.
- Exchange driver license information.
- Get their license plate number.
- Take pictures of the accident scene. Pictures are helpful to establish the date, time, place, weather conditions, and other important information regarding the car accident.
- Avoid making any statements about the accident to the other driver – but cooperate with them in exchanging information.
- If the police arrive, make a complete statement to them, but do not admit fault.
- Get the names and contact information for any eye witnesses, and find out what they observed.
- Inform your insurance company of the accident within 24 hours to make a claim
- Go to the doctor to so they can evaluate if you have sustained any injuries.
- If you have been injured, contact an experienced personal injury attorney.
Bigger Vehicles Equal Greater Damage
Additional Evidence Collection
Who is Responsible
The Bottom Line
As a law firm who practices both personal injury cases and divorces, we know that people going through a divorce are concerned about their assets and how the assets will be divided in a divorce. A common question for those who have been involved in a car accident case, or any other personal injury case is what happens to the personal injury settlement check? Most states give at least some consideration to the spouse that was not injured, meaning the personal injury award generally belongs to both spouses.
One of the ways to protect a personal injury award is by either doing a prenuptial or postnuptial agreement otherwise known as a prenup or postnup . If your personal injury award has already been given, or it will be given before you get married, then the settlement would be considered separate property and you would not have to worry about doing a prenup. However, if you expect your personal injury settlement to be awarded after you get married, or if you expect you may be in a common law marriage relationship, then you should consider doing a prenup to protect that personal injury award as separate property that would belong to you. If you are already married and get involved in an accident after your marriage and expecting a personal injury award, then you will need a postnup instead of a prenup.
Other than doing a prenup or postnup, be sure to follow other ways to protect your personal injury award such as keeping a separate bank account for the money awarded. Following these kinds of tips have commonly helped protect award like these in divorce proceedings from becoming a marital asset.
If you have any further questions or concerns about your divorce process and how your personal injury settlement may be divided in a divorce, contact a skilled divorce lawyer in North Texas or else where before proceeding any further.
Driving under revocation or suspension is when you are caught driving while your license has been suspended or revoked. Your license may be suspended for a variety of reasons, both criminal and civil, but it is usually related to a violation committed with your vehicle. This may be a DUI, or an accumulation of penalty points, or your car is involved in the committing of a serious crime.
If you are convicted of a DUI or for having too many driving violations you license will be suspended for a period of time depending on your local laws. If you are found driving during this period of revocation you will be cited and possibly arrested. The consequences may be steep fees, jail time or a longer suspension period. If you are on a conditional sentence like a deferred judgment or probation, a DUR may cause those to be revoked.
Depending on the underlying violation, driving under revocation may also affect one’s immigration status.
Sometimes the suspension is a conditional one, and once those conditions are met the license may be reinstated. This could be a hold on your license for a failure to appear in court or pay a fine; or even to maintain special insurance like an SR-22 if it is required of you. A hold on your license may occur for other civil reasons too, like failing to pay child support or another civil judgment.
Unfortunately, when your license is suspended you may only be informed by mail. If you have moved or mail is misplaced in some way, you would not know that you are under revocation until you are stopped for another reason. Once this driving under revocation charge is made it could complicate opportunities to alleviate the civil conditions. Maintaining a current address and checking your driving record with the DMV if you are facing civil penalties may help avoid this situation.
Consequences for both civil and criminal revocations may also include extended suspension and seizure of the vehicle under nuisance and abatement statutes, if that vehicle is suspected of being part of a serious crime.
In most cases the driver’s license is not automatically reinstated. The driver usually has to reapply for a license and meet certain conditions, usually paying fees and retaking the driving tests, as well as proving any other holds or conditions related to the revocation have been met.
Driving under suspension is a serious charge that can lead to significant consequences and complicate other legal matters you may be dealing with. Contact Colorado’s trusted criminal defense firm if faced with a driving under revocation charge.
Thanks to our friends at Hebets & McCallin for their insight into driving under revocation cases!
An executor is the person designated in the last will and testament to oversee the affairs of a person’s estate after that individual has died. Legally speaking, an executor is legally responsible for marshalling or collecting the assets of an estate, safeguarding them, and overseeing the proper distribution of a deceased person’s property according to the directives contained in a will. In this regard, if you are named as an executor, you have certain duties you must appropriately discharge.
The paramount responsibility you owe to an estate as an executor is what legally is known as a fiduciary duty. A fiduciary duty is classified as the highest standard of care, according to the Cornell University School of Law.
As an executory, you have a fiduciary duty to act solely in the best interests of the estate. Your decisions and actions must be directed towards ensuring the assets of the estate are protected and properly utilized and distributed according to the provisions of the estate and mandates of applicable law.
Obtain Key Documents
As part of your duties as an executor, you need to obtain a certified copy of the deceased individual’s death certificate. You also need to find the original copy of the last will and testament, and any other testamentary or related documents the deceased person may have prepared. This can include a trust agreement in some cases.
File the Will with the Court for Probate
Another primary task of an executor is filing a will with the appropriate court to have it probated. Depending on the nature and extent of the deceased person’s assets, and related considerations, the probate process might be fairly simple. On the other hand, a larger estate may result in a more complicated court process to probate the estate.
Obtain Letters Testamentary from the Court
Once the probate process commences, the court will issue what are known as letters testamentary. This is a court order that grants you formal, legal authority to serve officially as the executor of an estate. This is the legal document that gives you the power to address the affairs of the estate.
Locate and Inventory the Estate’s Assets
Once the will has been filed for probate, and letters testamentary are issued by the court, your next step as an executor is to identify, locate, inventory, and protect the assets of the estate. The inventory also includes identifying all liabilities of the estate as well. As a general rule, you will be required to file a formal inventory of major assets with the estate.
Pay Taxes and Bills Owed by Estate
Once the inventory of the estate is complete, as the executor, you pay the legitimate bills and taxes due and owing associated with the estate. Some liabilities may require specific court approval before they can be paid.
Regular Reports to the Court
Depending on the nature of the probate proceedings, you may be required to provide the court with recurring reports on the status of the estate. This must be filed in a timely manner to avoid sanctions from the court.
Once all of the liabilities of the estate have been satisfied, you return to the court for approval of the proposed distribution of assets in the manner directed in the will. An order from the court provides you the authority to complete the work of an executor in regard to an estate. In some cases involving a smaller estate, you can make the distribution without prior specific approval of the court.
Obtain Professional Guidance
If an estate is larger or more complicated, you may be best served retaining legal representation to assist you in your role as an executor of an estate. An estate lawyer Sacramento trusts typically will schedule an initial consultation with you at no cost to you or the estate.
Thanks to our friends and contributors from Yee Law Group for their insight into estate planning practice.