<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"
"http://www.w3.org/TR/REC-html40/loose.dtd">
<html>
<head>
<meta http-equiv="content-type" content="text/html; charset=utf-8">
<title></title>
</head>
<body style="font-family:Arial;font-size:14px">
<p>Law Office of<br>
<strong>F.ANDREKITA SILVA</strong><br>
<strong>________________________________________________________________________</strong><br>
<br>
. August 28, 2020 <br>
<br>
I would also like to know the answer to this. About four months ago, I had asked about how to apportion damages where there is a settlement, as opposed to a jury decision stating who gets what. Eric Nelson gave a GREAT, extremely helpful response.<br>
<br>
The beneficiaries in my case have now reached an agreement on how to apportion. I assumed that any settlement for “pain and suffering” was NOT subject to taxes. However, on doing research, what the IRS material seems to say is that compensation for the pain and suffering of the DECEASED as a result of a physical injury is not taxable to the estate (unlike the deceased’s lost wages which are taxable). <br>
<br>
The language of RCW 4.20.046 is “(2) In addition to recovering economic losses on behalf of the decedent's estate, the personal representative is only entitled to recover noneconomic damages for pain and suffering, anxiety, emotional distress, or humiliation personal to and suffered by the deceased … “<br>
<br>
Would you say that this is what the IRS code says, too. So, If deceased died because he/she was depressed because he/she was left by spouse- and no physical injury, then that is taxable? I am looking at 26 CFR ss 1.104-1 (see below - but to be honest, since we don't have the hard copy of the CODE here, and I am getting this ONLINE, I don't even know if this is good law, if it's been amended, revised, etc.<br>
<br>
So, let’s say death was pretty much on impact at the time of the accident, a MVA. No witnesses regarding the pain and suffering of the deceased prior to death, is that taxable? Whether it’s distributed to estate or directly to beneficiaries?<br>
<br>
andrekita<br>
Law Office of F. Andrekita Silva<br>
1325 Fourth Avenue, Suite 2000<br>
Seattle, Washington 98101<br>
206-224-8288<br>
www.seattle-silvalaw.com<br>
<br>
<br>
26 CFR ss 1.104-1<br>
<br>
<br>
<strong>§ 1.104-1 </strong><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><strong>Compensation</strong></a><strong> for injuries or sickness.</strong><br>
<strong>(a)</strong> <strong><em>In general.</em></strong> Section 104(a) provides an exclusion from <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=738000a3c4dedccb805a8fb4d9377fb2&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">gross income</a> with respect to certain <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> described in paragraphs <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=6aef00213f9cf73eb008d8bb08598aca&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">(b)</a>, <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=05ab4cc0bf13cc5bcef83d3950eefb63&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">(c)</a>, <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=78ef4a7ec4a9e68106ed263f66d68ba6&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">(d)</a> and <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=851a2ecc7381ad353031e745321ca2ce&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">(e)</a> of this section, which are received for personal injuries or sickness, except to the extent that such <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> are attributable to (but not in excess of) <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=f917901de6379998342cf498d0de4ad0&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">deductions</a> <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=88bc621669e0e301f18847de820acec8&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">allowed</a> under section 213 (relating to medical, <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5446184fc5a2c478f40fa162e771c46a&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">etc</a>., expenses) for any prior <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8a2837bd45f19a50d5183d6f43bb65dc&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">taxable year</a>. See section 213 and the regulations thereunder.<br>
<strong>(b)</strong> <strong><em>Amounts received under workmen's compensation acts.</em></strong> Section 104(a)(1) excludes from <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=738000a3c4dedccb805a8fb4d9377fb2&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">gross income</a> <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> which are received by an <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employee</a> under a workmen's <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> act (such as the Longshoremen's and Harbor Workers' <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">Compensation</a> Act, <a href="https://www.law.cornell.edu/uscode/text/33">33 U.S.C.</a>, c. 18), or under a statute in the nature of a workmen's <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> act which provides <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> to <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employees</a> for personal injuries or sickness incurred in the course of employment. Section 104(a)(1) also applies to <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> which is paid under a workmen's <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> act to the survivor or survivors of a deceased <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employee</a>. However, section 104(a)(1) does not apply to a retirement pension or annuity to the extent that it is determined by reference to the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employee</a>'s age or length of service, or the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employee</a>'s prior contributions, even though the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=5d8fbd8ea279aa8f9f55233cd860b35d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">employee</a>'s retirement is occasioned by an occupational injury or sickness. Section 104(a)(1) also does not apply to <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> which are received as <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> for a nonoccupational injury or sickness nor to <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> received as <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> for an occupational injury or sickness to the extent that they are in excess of the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amount</a> provided in the applicable workmen's <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=95cc7dcfd44d523b39bbc5898e848d24&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">compensation</a> act or acts. See, however, §§ 1.105-1 through 1.105-5 for <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=46bcdb5568d6a75306ff954291e17ab8&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">rules</a> relating to exclusion of such <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">amounts</a> from <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=738000a3c4dedccb805a8fb4d9377fb2&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">gross income</a>.<br>
<strong><span style="background-color:#ffff00;">(c)</span></strong><span style="background-color:#ffff00;"> </span><strong><em><span style="background-color:#ffff00;">Damages received on account of personal physical injuries or physical sickness</span></em></strong><span style="background-color:#ffff00;"> -</span><br>
<strong><span style="background-color:#ffff00;">(1)</span></strong><span style="background-color:#ffff00;"> </span><strong><em><span style="background-color:#ffff00;">In general.</span></em></strong><span style="background-color:#ffff00;"> Section 104(a)(2) excludes from </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=738000a3c4dedccb805a8fb4d9377fb2&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">gross income</span></a><span style="background-color:#ffff00;"> the </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">amount</span></a><span style="background-color:#ffff00;"> of any damages (other than punitive damages) received (whether by suit or </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8008bf4f45a636da984cc2b6961aaf95&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">agreement</span></a><span style="background-color:#ffff00;"> and whether as lump sums or as periodic payments) on </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=c3b57a31fc226d7b84e26175afe251f2&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">account</span></a><span style="background-color:#ffff00;"> of personal physical injuries or physical sickness. Emotional distress is not considered a physical injury or physical sickness. However, damages for emotional distress attributable to a physical injury or physical sickness are excluded from </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=1c07283120860b02c14e93d17bce07df&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">income</span></a><span style="background-color:#ffff00;"> under section 104(a)(2). Section 104(a)(2) also excludes damages not in excess of the </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=28deb181f824e2c48947311ef2dcf282&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">amount paid</span></a><span style="background-color:#ffff00;"> for medical care (described in section 213(d)(1)(A) or (B)) for emotional distress. For </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=0ad2de56cb198dce23b0b55179137f16&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">purposes</span></a><span style="background-color:#ffff00;"> of this paragraph </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=05ab4cc0bf13cc5bcef83d3950eefb63&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">(c)</span></a><span style="background-color:#ffff00;">, the term </span><em><span style="background-color:#ffff00;">damages</span></em><span style="background-color:#ffff00;"> means an </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=661fb5529bda5e7b12e0c516a1a1473f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">amount</span></a><span style="background-color:#ffff00;"> received (other than workers' compensation) through prosecution of a legal suit or action, or through a settlement </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8008bf4f45a636da984cc2b6961aaf95&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">agreement</span></a><span style="background-color:#ffff00;"> entered into in lieu of prosecution.</span><br>
<strong><span style="background-color:#ffff00;">(2)</span></strong><span style="background-color:#ffff00;"> </span><strong><em><span style="background-color:#ffff00;">Cause of action and remedies.</span></em></strong><span style="background-color:#ffff00;"> The section 104(a)(2) exclusion may apply to damages recovered for a personal physical injury or physical sickness under a statute, even if that statute does not provide for a broad range of remedies. The injury need not be </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=9bc15e20ef3eaa4f45fd661aa756d465&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">defined</span></a><span style="background-color:#ffff00;"> as a tort under </span><a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8a5270feb074ea85e9ec5ce707357490&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1"><span style="background-color:#ffff00;">state</span></a><span style="background-color:#ffff00;"> or common law.</span><br>
<strong>(3)</strong> <strong><em>Effective/applicability date.</em></strong> This paragraph <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=05ab4cc0bf13cc5bcef83d3950eefb63&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">(c)</a> applies to damages paid pursuant to a written binding <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8008bf4f45a636da984cc2b6961aaf95&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">agreement</a>, court decree, or mediation award entered into or <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=1249d9d69e1a86d8465c44a1c5d4729c&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">issued</a> after September 13, 1995, and received after January 23, 2012. <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=a1d17b090573400bd6a03dd4fbedfbdc&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">Taxpayers</a> also may apply these final regulations to damages paid pursuant to a written binding <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8008bf4f45a636da984cc2b6961aaf95&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">agreement</a>, court decree, or mediation award entered into or <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=1249d9d69e1a86d8465c44a1c5d4729c&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">issued</a> after September 13, 1995, and received after August 20, 1996. If applying these final regulations to damages received after August 20, 1996, <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=ca3fae183f466ef520f59615d7671264&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">results</a> in an overpayment of tax, the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=a1d17b090573400bd6a03dd4fbedfbdc&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">taxpayer</a> may file a claim for refund before the period of <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=615db3161c5a297288116997c50753ae&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">limitations</a> under section 6511 expires. To qualify for a <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=693eb7bd585b134e1753fcfbcd33893f&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">refund of tax</a> on damages paid after August 20, 1996, under a written binding <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=8008bf4f45a636da984cc2b6961aaf95&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">agreement</a>, court decree, or mediation award entered into or <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=1249d9d69e1a86d8465c44a1c5d4729c&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">issued</a> after September 13, 1995, a <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=a1d17b090573400bd6a03dd4fbedfbdc&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">taxpayer</a> must meet the <a href="https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=2c2a541db9f51c5abe91357b5f4bbf2d&term_occur=999&term_src=Title:26:Chapter:I:Subchapter:A:Part:1:Subjgrp:4:1.104-1">requirements</a> of section 1605 of the <a href="https://www.law.cornell.edu/topn/small_business_job_protection_act_of_1996">Small Business Job Protection Act of 1996</a>, <a href="https://www.law.cornell.edu/rio/citation/Pub._L._104-188">Public Law 104-188</a> (<a href="https://www.law.cornell.edu/rio/citation/110_Stat._1838">110 Stat. 1838</a>).<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
Quoting Donna Calf Robe <<a href="mailto:DonnaC@brothershenderson.com">DonnaC@brothershenderson.com</a>>:</p>
<blockquote style="border-left:2px solid blue;margin-left:2px;padding-left:12px;" type="cite">
<div class="WordSection1">
<p class="MsoNormal">Greetings:</p>
<p> </p>
<p class="MsoNormal">Does DOR count recovery for pain and suffering received by the statutory beneficiaries after the injured parties death, as part of the decedents taxable estate? I’ve been told that it is included but I cannot locate any authority. </p>
<p> </p>
<p class="MsoNormal">I found IRS rev rulings that the IRS counts it as part of the decedent’s taxable estate but those rulings were for decedents that died in states that have statutes providing that damages for pain and suffering recovered after death pass to the decedent’s estate. </p>
<p> </p>
<p class="MsoNormal">In Washington the survivorship statute provides at RCW 4.20.046(2) that “<span style="color:black;background:white">In addition to recovering economic losses on behalf of the decedent's estate, the personal representative is only entitled to recover noneconomic damages for pain and suffering, anxiety, emotional distress, or humiliation personal to and suffered by the deceased on behalf of those beneficiaries enumerated in RCW </span><a href="http://app.leg.wa.gov/RCW/default.aspx?cite=4.20.020"><b><span style="color:#7DAB8A;background:white;text-decoration:none">4.20.020</span></b></a>…” <span style="color:black;background:white"> It makes sense that all damages recovered for claims belonging to the decedent, had he survived, would be part of the taxable estate, but the WA statute specifically provides that the funds for pain and suffering only pass to the statutory beneficiaries. Any authority would be appreciated.</span></p>
<p> </p>
<p class="MsoNormal"><span style="color:black;background:white">Thanks, </span></p>
<p> </p>
<div>
<p class="MsoNormal" style="background:white"> </p>
<p><b><i> </i></b></p>
<p> </p>
<p class="MsoNormal" style="background:white"><b><i><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'>Donna</span></i></b></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'> </span></p>
<p> </p>
<p class="MsoNormal"><span style='font-family:"Times New Roman",serif'>Donna M. Calf Robe</span></p>
<p> </p>
<p class="MsoNormal"><span style='font-family:"Times New Roman",serif'>Attorney</span></p>
<p> </p>
<p class="MsoNormal"><span style='font-family:"Times New Roman",serif'>Brothers & Henderson, P.S.</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'>2722 Eastlake Avenue East, Suite 200</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'>Seattle, Washington 98102</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'>Phone: (206) 324-4300 x113</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'>Fax: (206) 324-3106</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'>e-mail: donnac@brothershenderson.com</span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'><a href="http://www.brothershenderson.com/"><span style="color:blue">www.brothershenderson.com</span></a></span></p>
<p> </p>
<p class="MsoNormal" style="background:white"><span style='font-family:"Times New Roman",serif;color:black'><img border="0" height="56" id="Picture_x0020_3" src="cid:RruLukUBu4hdqSXC1biCDWP@biz251.inmotionhosting.com" style="width:2.0416in;height:.5833in" width="196"></span></p>
<p> </p>
<p class="MsoNormal"><span style='font-size:10.0pt;font-family:"Times New Roman",serif;color:black'>The information transmitted in this e-mail message and attachments is attorney-client information, is privileged or confidential material and is intended only for the use of the individual or entity named above. You are hereby notified that any disclosure, copying, distribution, review by or taking of any action in reliance on the contents of this e-mail information by unauthorized persons is strictly prohibited. All personal messages are solely the views of the sender and are not to be attributed to Brothers & Henderson, P.S. If you have received this transmission in error, immediately notify the sender by reply e-mail and permanently delete this transmission and all copies including attachments.</span></p>
<p> </p>
</div>
<p class="MsoNormal"> </p>
<p> </p>
<p> </p>
</div>
</blockquote>
<p><br>
</p>
<p><br></p>
</body>
</html>