Legal Question in Legal Malpractice in California
My dad passed away and we are receiving a settlement for abuse and neglect from the two hosptials that cared for him. Is this settlement....roughtly $200k taxable? Does the same hold true for wrongful death?
Asked on 8/03/10, 5:09 pm
2 Answers from Attorneys
Michael Stone
Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE
It's a question of how the settlement is termed. Wrongful death, i.e. compensation for the loss of his affection and society, taxable. Compensation for bodily injuries to him during his lifetime including his pain and suffering, nontaxable (except possibly as part of his estate). Your own competent attorney should know how to set up the settlement with the respective insurance companies so that it is non-taxable to the extent possible.
Answered on 8/08/10, 5:31 pm