- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Personal Injury Settlement
Posted on 10/13/16 at 1:06 pm to ThatsAFactJack
Posted on 10/13/16 at 1:06 pm to ThatsAFactJack
I was also involved in a PI settlement as a minor when I was about 8. Parents got the money and judge ordered it to be put in a specific account. My father appealed and asked for funds to be locked in with his Financial Adviser in a low risk account. Judge approved, but if my father or mother wanted to spend any of the money out of that account it had to be approved by the judge and show that it was for the betterment of my life. Basically had to be education related. The only example we were given was a laptop for school. Luckily, my parents never touched it, and I received the check on my 18th birthday. I had completely forgotten about it, so it was a nice surprise.
1
Posted on 10/13/16 at 1:11 pm to ThatsAFactJack
quote:
I do have a problem if it is required to be a government insured account.
then you're going to have a problem
Posted on 10/13/16 at 1:29 pm to ThatsAFactJack
You'll have to have the settlement approved of over $10k but that won't be a problem. PI proceeds are not taxable, I wouldn't worry about the small piece for wages because your settlement won't specify what is for what exactly, and it's not much money.
On the investment - if you receive a check and then invest it, earnings will be taxable. Talk to your lawyer about getting it set up in an annuity/trust - the process is to get to financial folks involved ahead of time and made a part of the settlement - they will have their own magic language for the release and dismissal - and the money (either all or part, you decide) will go directly to the financial company for investment. As long as you never touch it, then even the earnings of the investment will not be taxable.
I hope your family friend lawyer is a PI guy who would know this stuff. Could be dangerous having a friend who does all family law or something trying to negotiate a large PI settlement.
On the investment - if you receive a check and then invest it, earnings will be taxable. Talk to your lawyer about getting it set up in an annuity/trust - the process is to get to financial folks involved ahead of time and made a part of the settlement - they will have their own magic language for the release and dismissal - and the money (either all or part, you decide) will go directly to the financial company for investment. As long as you never touch it, then even the earnings of the investment will not be taxable.
I hope your family friend lawyer is a PI guy who would know this stuff. Could be dangerous having a friend who does all family law or something trying to negotiate a large PI settlement.
Posted on 10/13/16 at 1:38 pm to darnol91
quote:
darnol91
That is our exact plan with our daughters settlement. Put it away and she will have a nice cushion when she becomes an adult.
Posted on 10/13/16 at 1:41 pm to NaturalBeam
quote:
NaturalBeam
quote:
I hope your family friend lawyer is a PI guy who would know this stuff. Could be dangerous having a friend who does all family law or something trying to negotiate a large PI settlement.
Yes family friend is a PI lawyer. They are a small firm with offices in Lafayette, Marksville and Shreveport.
Yes the plan is that my daughters settlement is put in a trust. Thanks for the heads up about getting the financial folks involved ahead of time. Had not thought of that.
Posted on 10/13/16 at 1:41 pm to Motorboat
quote:
Motorboat
Can you expand on your comment about why it has to be in a government insured account?
This post was edited on 10/13/16 at 1:43 pm
Posted on 10/13/16 at 2:11 pm to ThatsAFactJack
interest-bearing FDIC.
You and your wife will sign and file an oath as tutor and undertutor regarding preservation of funds. Any invasion of funds only under narrow circumstances and requires court approval
You and your wife will sign and file an oath as tutor and undertutor regarding preservation of funds. Any invasion of funds only under narrow circumstances and requires court approval
Posted on 10/13/16 at 3:06 pm to Rantavious
quote:
Rantavious
I get the why behind needing court approval. But what I don't get is why does it have to be an interest bearing FDIC account? Why cant it be setup like a custodial account for a minor so that it can be invested and have potential (historical) better gains then just a basic interest bearing account. My daughter is 5. So lets say she gets 75-100k as her settlement. She is going to be shortchanged a decent chunk of gains (historically) if limited to an interest bearing account over the 13 years until she hits 18.
This post was edited on 10/13/16 at 3:07 pm
Posted on 10/13/16 at 3:27 pm to ThatsAFactJack
Probably already been answered, but I believe the only parts that are taxable are punitive damages, lost salary, and possibly pain and suffering. If any money is specifically allocated to those things, then it's possibly taxable. But money for injuries, future medical costs, etc. are not considered income.
Posted on 10/13/16 at 5:47 pm to ThatsAFactJack
That's all I got, no further experience.
What you seek may be possible, but (as a general proposition) you will need court approval for anything other than putting it in the bank.
What you seek may be possible, but (as a general proposition) you will need court approval for anything other than putting it in the bank.
Posted on 10/13/16 at 6:12 pm to Fred439
quote:
You might want to look into a Structured Settlement. Talk to your lawyer or even the insurance company.
This is horrible advice.
Posted on 12/13/16 at 9:27 pm to ThatsAFactJack
I have a friend who working for an insurance firm,If he is online I will discuss this matter and ping you. 
Posted on 12/13/16 at 9:36 pm to ThatsAFactJack
Because she could also see it all vanish and then what was the point of coming to a financial settlement in the first place.
You filed for damages and all parties agreed that she should have 100k (or whatever) once she becomes an adult.
The only guarantee that those funds will be there for her (not your money) is through government backed funds
You filed for damages and all parties agreed that she should have 100k (or whatever) once she becomes an adult.
The only guarantee that those funds will be there for her (not your money) is through government backed funds
Posted on 12/13/16 at 10:27 pm to ThatsAFactJack
Compensations are not taxable. Compensation is not a reward instead it is an 'indemnification' for your loss and sufferings. You only need to pay income tax when you gain something.
If you are trying to invest the money in business for earning 'money/profit' , you need to pay tax for that. I am sorry to hear about your little angel. I discussed with my friend and he told me to take a look on this page. more details here
This is a similar case for disability and emotional issues. Disability tax credits are available for such issues, discuss this matter with your lawyer.
All the best and happy Christmas.
If you are trying to invest the money in business for earning 'money/profit' , you need to pay tax for that. I am sorry to hear about your little angel. I discussed with my friend and he told me to take a look on this page. more details here
This is a similar case for disability and emotional issues. Disability tax credits are available for such issues, discuss this matter with your lawyer.
All the best and happy Christmas.
This post was edited on 12/13/16 at 10:32 pm
Posted on 12/13/16 at 10:37 pm to Mr.Perfect
The only option with a huge amount of money is to invest it. investing on behalf of child is also an option but the maturity period is higher.
Posted on 12/13/16 at 11:14 pm to ThatsAFactJack
Government-backed FDIC so you and your financial adviser can't put her in speculative stocks and lose all her money.
Posted on 12/13/16 at 11:43 pm to ThatsAFactJack
quote:
I get the why behind needing court approval. But what I don't get is why does it have to be an interest bearing FDIC account? Why cant it be setup like a custodial account for a minor so that it can be invested and have potential (historical) better gains then just a basic interest bearing account.
Are you serious? It is so you can not lose it for her before she receives it dumb arse, you and the wife ARE NOT RECEIVING THE CHILD'S SETTLEMENT as you have stated multiple times in this thread.
The child is receiving a settlement and you and you wife are the custodians with very little latitude on who what and where the money is spent and or invested for very good reason.
Posted on 12/14/16 at 12:14 am to cave canem
quote:
Are you serious? It is so you can not lose it for her before she receives it
There's probably some kids out there who had inheritance money or such, but pops was smart and put it in ENRON or Blockbuster or with that genius Bernie Madoff. He's getting at least 10%!
Thanks, Dad.
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News