Personal Injury Cases: Increasing Net Settlements Through Tax Savings
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Personal Injury and Med Mal
- event Date
Tuesday, May 24, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE webinar will discuss the tax consequences to plaintiffs of personal injury settlements and damages and how knowledge of those tax considerations drives the parties' strategies during the case. The program will guide counsel through the right questions and the right professionals to engage to prevent the client from incurring unnecessary tax liability or inadvertently losing favorable tax treatment. The panel will review how to avoid malpractice and ethical pitfalls and offer insights into the tax considerations of the party paying the settlement.
Mr. Babener is an expert in lawsuit settlement strategies and a seasoned tax attorney. As Tax Counsel at Structured Legal and Founder of Structured Consulting, he specializes in guiding trial lawyers and settlement planners to solutions that maximize settlement value, using strategies based in tax, finance, and government benefits. Mr. Babener regularly writes for Forbes, Bloomberg, and the ABA, sharing insights on structured settlements, tax optimization, and legal ethics compliance. His expertise is recognized through his active involvement on the legal committees of the three national settlement planning associations, where he advocates for plaintiffs, plaintiff lawyers, and settlement planners. Mr. has focused on settlements for over a decade, including in his role as Special Tax Counsel at law firm Lane Powell, and as Fellow in the U.S. Treasury’s Office of Tax Policy.
Ms. Hresko has over 20 years of experience as a CPA, beginning her career with KPMG. She advises plaintiffs and plaintiff counsel on a range of tax and accounting issues.
Too often, the tax ramifications of litigating or settling a case are not considered until after the fact. While awards for some types of damages are not taxable, most are, but telling the difference is not straightforward. After prevailing against a defendant, plaintiffs do not want to battle the taxing authorities.
Counsel should try to structure settlements to obtain the most desirable tax rates or make them tax-free, if possible.
When cases involve multiple parties, complex issues, and many different types of damages, how settlements are structured and worded is paramount. While fewer options exist for managing the tax consequences of a jury award, some strategies can be deployed.
Listen as this preeminent panelist provides crucial guidance in skillfully and efficiently managing tax issues arising in the context of personal injury payments.
- Taxation of settlement awards
- Tax language in settlement agreements
- Strategies to make settlements tax-free
- Strategies to reduce tax liability
The panelist will review these and other key issues:
- Do personal injury lawyers have a duty to minimize taxation of personal injury settlements?
- What terms are most hotly negotiated in personal injury settlement and release agreements?
- Are specific, itemized verdict forms useful in managing the tax consequences of the award?
- Should cases be planned and litigated with taxes in mind?
- Which state's tax laws apply to the award?
