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I really cannot answer your questions. They are beyond the limited scope of a listserv. You should consult with attorneys who can get a full view of your situation. A listserv cannot do that.
<div>Phil Jones<br>
<br>
<div dir="ltr">Philip N. Jones
<div>Duffy Kekel LLP</div>
<div>Portland, OR</div>
<div>pjones@duffykekel.com</div>
<div>(503) 853-1482 cell</div>
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<blockquote type="cite">On Nov 17, 2020, at 5:52 PM, Andrekita Silva <ak@seattle-silvalaw.com> wrote:<br>
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<p>Law Office of<br>
<strong>F.ANDREKITA SILVA</strong><br>
<strong>________________________________________________________________________</strong><br>
<br>
. November 17, 2020 <br>
<br>
Philip,<br>
<br>
I have concerns about taxes to the estate of the decedent ( if IRS decides this is not decedent's pain and suffering but future lost earnings), <br>
and potential income taxes to the beneficiaries say a distribution directly to them is for their own pain and suffering.<br>
<br>
If this were you, would you try to figure out for what a jury may have awarded damages? <br>
The defendants did not say what the settlement was for.<br>
<br>
Is it reasonable to pay the net proceeds to the estate so that PR can distribute (to her and her brother)? <br>
They have received separate advice (they have not disclosed from whom) that proceeds they receive are not taxable. <br>
<br>
I'm not as confident as whoever advised them.<br>
<br>
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">andrekita</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Law Office of F. Andrekita Silva</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">1325 Fourth Avenue, Suite 2000</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Seattle, Washington 98101</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">206-224-8288</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">www.seattle-silvalaw.com</span><br>
<br>
<br>
Quoting Andrekita Silva <<a href="mailto:ak@seattle-silvalaw.com">ak@seattle-silvalaw.com</a>>:</p>
<blockquote style="border-left:2px solid blue;margin-left:2px;padding-left:12px;" type="cite">
<p>Law Office of<br>
<strong>F.ANDREKITA SILVA</strong><br>
<strong>________________________________________________________________________</strong><br>
<br>
. November 17, 2020 <br>
<br>
<br>
Philip,<br>
<br>
Thank you for your comments, <br>
<br>
In our case, we initially sued under the survival statute because there were no beneficiaries that qualified under the wrongful death statute.<br>
<br>
In late July 2019, the wrongful death statute was amended and gave the parents a right of action for wrongful death. <br>
<br>
We never actually amended the pleadings because we eventually we settled and didn't need to.<br>
<br>
However, we put all parties on notice that the parents were seeking damages pursuant to the wrongful death statute, and all defendants did extensive discovery on that issue. <br>
So, it wasn't a last minute change. But, the settlement didn't say what the settlement was for - compensation to deceased for lost earnings, compensation to deceased for pain and suffering, compensation to beneficiaries for xyz etc.<br>
<br>
Can I distribute net proceeds to the Estate ? For PR to distribute to beneficiaries? <br>
<br>
<br>
<br>
<br>
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">andrekita</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Law Office of F. Andrekita Silva</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">1325 Fourth Avenue, Suite 2000</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Seattle, Washington 98101</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">206-224-8288</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">www.seattle-silvalaw.com</span><br>
<br>
Quoting "Philip N. Jones" <<a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a>>:</p>
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<span style="font-size:14.0pt;font-family:"Times New Roman",serif">I suggest that you go back to the original cause of action/complaint, and see what you were suing for. If it was a combination of wrongful death and survivorship (pain and suffering), then
it will be difficult to now take the position that it is now 100% one or the other. The IRS is not very friendly towards people who change their tune in order to reduce the taxes. </span></p>
<p> </p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">On the tax side, are you referring to income taxes or estate taxes? You need to examine both and be certain of your conclusion. It is my recollection that survivorship
proceeds are subject to estate tax, but wrongful death proceeds are not. But check for yourself. And look into the income taxes. My hunch is that no income taxes are owed, but check for yourself to make certain.</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I express no opinion on your other questions. Find someone who does lots of wrongful death.</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Phil Jones</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Philip N. Jones</span></p>
<p> </p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Duffy Kekel LLP</span></p>
<p> </p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">900 S.W. Fifth Ave. Suite 2500</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Portland, OR 97204</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a></span></p>
<p> </p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-1371 – office</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 853-1482 – cell</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-3574 - fax</span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of</b> Andrekita Silva<br>
<b>Sent:</b> Tuesday, November 17, 2020 4:25 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Testamentary Trust</p>
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<p><span style="font-size:10.5pt;font-family:"Arial",sans-serif">Law Office of<br>
<strong><span style="font-family:"Arial",sans-serif">F.ANDREKITA SILVA</span></strong><br>
<strong><span style="font-family:"Arial",sans-serif">________________________________________________________________________</span></strong><br>
<br>
. November 17, 2020<br>
<br>
<br>
List serve,<br>
<br>
I understand that the proceeds from a wrongful death action do not belong to the estate, rather to the beneficiaries (thank you to Eric Nelsen for a really great summary on this issue earlier this year). I also understand the proceeds from
a survival action are more of a muddle. I know there are no taxes for pain and suffering experienced by the decedent for a physical injury.<br>
I’d like to close the probate with a Declaration of Completion. Without the survival/ wrongful death action, the estate had extremely modest assets and we settled with all creditors. But, the Declaration of Completion must say all U.S. and
Washington estate tax due as a result of Decedent's death have been determined, settled, and paid.<br>
So, if we decide that settlement proceeds are for pain and suffering of the decedent, can I assume that this statement about taxes applies to only the Estate? This has nothing to do with any taxes that the beneficiary might owe in their own
U.S. state or foreign country?<br>
The proceeds from the survival/ wrongful death action are in my trust account. I would prefer to pay the net proceeds to the personal representative for HER to distribute to the beneficiaries (herself and her brother.) They are in agreement
as to how much they will each receive. My main concern is to avoid liability for myself if there is a tax issue down the line. Is this okay to do?<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>
<a href="http://www.seattle-silvalaw.com">www.seattle-silvalaw.com</a><br>
<br>
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