Sage Settlement Consultant Randy Levine recently helped obtain a favorable IRS Private Letter Ruling (PLR) regarding the taxability of wrongful life settlements. Wrongful life settlements arise in instances where a health care provider or physician fails to provide sufficient warning of the risk of potential congenital disorders before the conception or birth of a child. Consequently, many families face insurmountable medical costs.
"This PLR is huge, not only for [...] wrongful life clients but for all other families who face extraordinary future needs for their children," said Randy, who worked closely with John McCulloch of Arcadia Settlements Group and the National Structured Settlements Trade Association (NSSTA) to secure the PLR.
Prior to the ruling, a lack of clarity existed surrounding the taxability of wrongful life settlements. The favorable PLR allows for a more consistent approach in advising wrongful life claimants on their settlement options. For instance, some families may choose to utilize income tax-free structured settlements to establish a source of long-term financial security.
To learn more, click here for the full press release. Congratulations to Randy, John, and NSSTA and thank you for advocating for our clients!