Legal Question in Tax Law in California

taxation of wrongful death settlement proceeds

A 17-year old was killed in an automobile accident. A settlement in favor of the decedent's parents has been reached in a wrongful death claim. The damages are not punitive. Are the proceeds from this settlement taxable?


Asked on 5/07/98, 12:36 pm

1 Answer from Attorneys
WILLIAM BRANDWEIN WILLIAM A. BRANDWEIN, A PROFESSIONAL LAW CORP.

WRONGFUL DEATH PROCEEDS

SETTLEMENT OR AWARDS ON ACCOUNT OF WRONGFUL DEATH FALL UNDER THE EXCLUSION FROM INCOME BECAUSE OF THE PERSONAL INJURY EXCEPTION. EVEN PUNITIVES MIGHT UNDER CERTAIN CIRCUMSTANCES

Read more
Answered on 5/29/98, 12:13 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in California