Legal Question in Tax Law in California

Death Settlement - Expenses Incurred

When my father passed away, my Mom hired attorneys experienced in collecting claims on death by asbestos. She incurred debt of about $6k getting all the documentation together, i.e., autopsy and biopsy which was mandatory as well as all his hospital records. She has received some settlement from a few companies. Does she have to claim this as income on her taxes and, if so, can she deduct her expenses to offset the monetary awards.


Asked on 2/12/09, 10:26 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Death Settlement - Expenses Incurred

In general, and without knowing more about your specific case, settlements from injury claims are not taxable, and settlement from purely death claims are. Wise attorneys write the settlement agreements so as to minimize the tax burden. My best guess is the expenses are deductible from any taxable income, but Mom will need to bring the settlement agreements to a tax specialist for an informed opinion.

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Answered on 2/12/09, 10:38 pm


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