Eastern Point Trust

Understanding the taxability of legal settlements is crucial for maximizing compensation and avoiding potential issues with the IRS. In this video, we break down the complexities of lawsuit settlements and their tax implications, focusing on key sections of the Internal Revenue Code (IRC). Section 61 of the IRC outlines the general rule that settlement awards are taxable unless specifically excluded. However, Section 104 provides an important exception, excluding settlements related to physical injuries from taxable income. This video will help you navigate these distinctions and understand how the purpose of your settlement determines its taxability. - Learn how the IRS differentiates between taxable and non-taxable settlement proceeds. - Discover strategies to allocate settlement funds to minimize tax liability. - Understand the benefits of using qualified settlement funds (QSFs) to defer taxes and manage settlement distributions effectively. Taxation on settlements can be complex, with nuances that can impact your financial outcome. By consulting with a settlement tax expert, you can better navigate these intricacies and secure a more favorable tax position. Visit easternpointtrust.com for more insights on minimizing the tax impact of your settlement award and to explore the resources we offer to help you make informed decisions. Read more: https://www.easternpointtrust.com/articles/what-legal-settlements-are-taxable-and-how-to-minimize-taxation-of-settlement-awards Explore awards taxation further: https://www.easternpointtrust.com/articles/maximizing-a-court-award-strategic-tax-planning-for-post-judgment-interest

In this quick and informative video, we explain the fundamentals of Qualified Settlement Funds (QSFs), a vital tool in managing and distributing settlement funds in legal cases. A QSF is a specially designed trust that handles settlements from legal matters like torts or contract breaches. Defendants can fund a QSF and immediately benefit from a tax deduction. At the same time, plaintiffs receive their settlement in a tax-efficient manner, allowing them to defer taxes until the funds are actually distributed. - Discover how QSFs work to provide tax advantages for both defendants and plaintiffs. - Learn about the quick setup process for a QSF, with QSF 360 enabling the establishment of a QSF online within just one business day. - Understand the benefits of using a QSF in your legal settlement strategy and how it can optimize financial outcomes for all parties involved. For more detailed information on Qualified Settlement Funds and how they can benefit your legal and financial strategies, visit https://www.easternpointtrust.com/. Contact Eastern Point Trust Company for expert guidance on setting up a QSF. Read more: https://www.easternpointtrust.com/articles Learn about QSF360: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

Qualified settlement funds are IRS-qualified tax entities that streamline the settlement process and are managed by expert administrators who ensure smooth operation and asset oversight. Contrary to popular belief, QSFs aren't just for mass torts and class actions. They can handle various claims including torts, breach of contract, and environmental liability. QSFs offer benefits for both plaintiffs and defendants. Attorneys can secure settlement proceeds in a QSF, providing a safe space for planning without immediate pressure. Defendants gain immediate tax deductions, and plaintiffs can defer taxation on their settlement amounts until distribution. This offers significant financial planning advantages. QSF 360 makes the setup process affordable, with a fee of just $500. Don’t let myths deter you from utilizing this powerful tool. Key takeaways: - QSFs can resolve various claims including torts, breach of contract, and environmental liability. - Defendants can get immediate tax deductions, and plaintiffs can defer taxation on their settlements until distribution. - QSF 360 offers a streamlined setup process with a fee of only $500. Read more:https://www.easternpointtrust.com/articles/qualified-settlement-funds-dispelling-common-myths-a-listicle Learn more about QSF 360: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

Revenge porn litigation presents significant challenges not only due to the emotional and reputational damage inflicted but also because of abysmal tax treatment that can lead to zero net recovery. In this video, we delve into the complexities of revenge porn cases and the financial impact of the plaintiff double tax. Revenge porn is not rare. It's estimated that one in eight social media users in the US are revenge porn targets. Revenge porn victims (RPVs) can pursue various types of civil causes of action, including intentional infliction of emotional distress, invasion of privacy, and defamation. Some states have civil laws allowing RPVs to seek compensatory damages, while others have specific laws enabling private actions against the person sharing the private images. Revenge porn damages include reputational harm, emotional distress, pain and suffering, lost income, medical expenses (including mental health care), and punitive damages. Unfortunately, because of the plaintiff double tax, RPVs suffer twice: first by the underlying violative action itself, and second by how their litigation recovery is taxed. Discover how the plaintiff double tax affects revenge porn litigation and explore potential solutions like the plaintiff recovery trust. - Learn about the financial impact of the plaintiff double tax on revenge porn victims. - Understand the types of damages RPVs can claim in civil litigation. - Discover how a plaintiff recovery trust can significantly increase the after-tax recovery for RPVs. Read more: https://www.easternpointtrust.com/articles/revenge-porn-litigation-bad-behavior-abysmal-tax-treatment-and-possible-zero-net-recovery Learn about the Plaintiff Recovery Trust: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

CNBC highlighted the importance of settlement planning and use of Qualified Settlement Funds in interviews with Eastern Point's Chief Trust Officer (Rachel McCrocklin) and Tax Strategist (Jeremy Babener). “The right settlement planning can double what plaintiffs keep, even with the defense paying less.” For more details on Qualified Settlement Funds, visit https://www.easternpointtrust.com. Read more: https://www.easternpointtrust.com/articles Learn about the QSF 360 platform: https://www.easternpointtrust.com/qsf-360

In this informative video, we explore how utilizing a Qualified Settlement Fund (QSF) can significantly enhance the resolution process in legal practices. Recognizing when and how to use QSFs can grow your practice, reduce risks, and produce better financial outcomes for you and your clients. A QSF is a tax-qualified statutory trust allowing a defendant to receive a full release when a settlement is paid into an account acting as a temporary trust account. These settlement funds can be used to pay in cash, fund a structured settlement, attorney fee structure or assignment, and settle liens or allocation issues between parties. - Discover the benefits of QSFs and how they streamline the settlement process. - Learn how QSFs created under Section 468B are flexible and suitable for various case types, including class actions, mass torts, and single-plaintiff cases. - Understand how QSFs can simplify interactions with defense representatives and attorneys by removing them from the post-settlement process. With Eastern Point Trust Company's QSF 360 platform, setting up a QSF is quick and easy. In just 15 minutes online and for as little as $500, a QSF can be established typically within a single business day. This platform provides everything you need, from necessary documents to governmental approval and IRS registration. Key Takeaways: - Recognize the strategic use of QSFs to enhance your practice. - Reduce risks and improve financial outcomes with effective QSF utilization. - Leverage Eastern Point's QSF 360 platform for a seamless, turnkey solution. For more details on Qualified Settlement Funds, visit https://www.easternpointtrust.com/ Read more: https://www.easternpointtrust.com/articles Learn about the QSF 360 platform: https://www.easternpointtrust.com/qsf-360

In the aftermath of winning or settling a lawsuit, it is essential to understand the potential federal and state income tax implications and the strategies you can employ to minimize your tax liability. In this video, we delve into the complexities of the taxability of lawsuit settlements and provide actionable tips to help you navigate the challenging world of taxes on settlement money. Not all amounts received from a settlement are exempt from federal and state income taxes. In determining the taxability of a settlement, it’s crucial to consider the purpose for which the settlement or award was received. Settlements related to physical injuries or illnesses where there is observable bodily harm are generally not considered taxable by the IRS. While settlements for physical injuries or illnesses are tax-exempt, emotional distress awards are typically subject to taxes. Settlements designated explicitly for medical expenses are generally not taxable. However, punitive damages, awarded to punish the defendant for their wrongdoing, are almost always taxable. The tax treatment of legal fees depends on the nature of the settlement. - Discover practical strategies to minimize your settlement tax liability. - Learn about the different types of settlement awards and their tax implications. - Understand the importance of appropriate damage allocation and payment structuring. - Explore Qualified Settlement Funds and capital gains treatment. - Eliminate the taxation of the attorney fee portion through the Plaintiff Recovery Trust (PRT). The Plaintiff Recovery Trust (PRT) is an effective solution for eliminating double taxation on the attorney fee portion. Keep in mind that the PRT must be in place before the settlement or judicial award is finalized. Winning or settling a lawsuit is a significant achievement, but it’s crucial to understand the potential tax implications of your settlement. Contact Eastern Point Trust Company to learn more about the Plaintiff Recovery Trust and other strategies to minimize your tax liability on lawsuit settlements. Read more: https://www.easternpointtrust.com/articles/how-to-minimize-tax-liability-on-lawsuit-settlements-or-avoid-paying-taxes-on-settlement-money Learn about the Plaintiff Recovery Trust: https://www.easternpointtrust.com/plaintiff-recovery-trust

In this comprehensive video, we delve into the ownership of assets within a qualified settlement fund (QSF), a crucial topic in legal and financial circles. Qualified settlement funds, or QSFs, are powerful tax tools used in legal settlements, but who really owns the assets in a QSF? According to IRS section 468B, "the fund shall be treated as the owner of the property in the fund (and any earnings thereon)." This means that the assets are segregated and not owned by any defendant, plaintiff, lien holders, or plaintiff attorney. - Discover the core principles of QSFs and their unique role in legal settlements. - Learn about IRS section 468B and what it means for asset ownership within a QSF. - Understand how a QSF operates as a statutory trust for the benefit of plaintiffs and is managed by an independent administrator. - Explore the tax compliance requirements to ensure the QSF maintains its qualified status and how these rules impact the ownership of assets. For those involved in legal settlements, understanding the intricacies of QSFs can provide significant benefits and clarity. For additional information on QSFs, please visit https://www.easternpointtrust.com/. Contact Eastern Point Trust Company for more information on legal and financial strategies involving QSFs. Read more: https://www.easternpointtrust.com/articles Learn about Qualified Settlement Funds: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

Escrow accounts play a crucial role in private placements, holding investor funds until the satisfaction of specific offering terms to ensure regulatory compliance and safeguard investor interests. In this video, we provide an in-depth guide on the importance of escrow accounts for private placements and the benefits of using a trust company for these accounts. Opting for a trust company over a traditional bank account introduces the advantage of active independent oversight and FDIC insurance coverage up to $150 million per account. Using an escrow agent underscores the commitment to the prudent management of funds in private offerings. - Learn the role of escrow accounts in private placements. - Discover the benefits of using a trust company versus a traditional bank account for escrow accounts. - Understand the process of selecting an escrow agent and establishing an account, which can take as little as one business day with platforms like Eastern Point Trust Company. - Explore the steps involved in the escrow process, from fund transmittal to breaking escrow once offering terms are satisfied. - Recognize the added security and compliance benefits provided by trust companies, enhancing investor confidence and ensuring adherence to SEC and FINRA rules. Selecting an escrow agent to establish an account can typically take one to two weeks, but platforms like Eastern Point Trust Company can expedite this process to as little as one business day. The escrow process involves waiting for the transmittal of funds by investors, either directly into the escrow or through a broker dealer, which is critical for proceeding with breaking escrow. Once the terms of the offering have been satisfied, the offeror may request to break escrow and begin receiving funds. For more information on private placement escrow accounts, or to get started, visit https://www.easternpointtrust.com/. Contact Eastern Point Trust Company to learn more about the benefits of using trust companies for escrow accounts in private placements. Read more: https://www.easternpointtrust.com/articles/ultimate-guide-to-escrow-accounts-for-private-placements Learn about Private Placement Escrow Accounts: https://www.easternpointtrust.com/private-placement-escrow-services

Qualified Settlement Funds (QSFs) are valuable financial mechanisms that offer tax benefits and flexibility in managing settlements across various disputes and litigation. In this video, we delve into the proper naming conventions for QSFs, ensuring compliance and enhancing the fund's integrity and purpose. Let's explore the essential guidelines for naming a Qualified Settlement Fund. Following appropriate naming conventions is crucial for maintaining the fund’s integrity and ensuring compliance with the 2024 IRS naming requirements, which state that no QSF name may exceed 64 alphanumeric characters. Additionally, a governmental authority must approve and exercise jurisdiction over a potential QSF, adhering to policies that prevent misleading names. - Understand the 2024 IRS naming requirements for QSFs. - Learn why a QSF should not be confused with an interest on lawyer's trust account or an account owned by a law firm. - Discover safe harbor naming practices, including using terms like Qualified Settlement Fund, QSF, FBO designations, and incorporating the case name, plaintiff name, or plaintiff family name. - Explore the benefits of standardizing naming conventions for law firms handling multiple QSFs. Standardizing naming conventions for QSFs facilitates effective case management, improves transparency, and ensures quicker access to essential documents. Consistent naming practices avoid confusion during audits and legal reviews and allow for the timely and accurate distribution of funds. Carefully selecting a compliant name is not merely a governmental requirement but also a strategy to remove barriers and eliminate questions. For additional guidance on naming or to open a Qualified Settlement Fund today, please visit https://www.easternpointtrust.com/. Read more: https://www.easternpointtrust.com/articles/a-guide-to-correctly-naming-a-qsf Learn about Qualified Settlement Funds: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

In this video, we explore the financial implications of E. Jean Carroll's $83 million defamation award against former President Donald J. Trump. Despite the victory, Ms. Carroll faces a significant tax burden due to the "double tax" on her settlement, potentially reducing her net proceeds to just 9 cents on the dollar. Discover how the Plaintiff Recovery Trust, sponsored by Eastern Point Trust Company and Forward Giving, can eliminate this double tax burden, thereby significantly increasing the net after-tax proceeds for plaintiffs. This innovative trust structure ensures that plaintiffs are not taxed on their attorney fees, offering a potential increase in after-tax recovery by up to 150%. - Learn about the impact of double taxation on large settlements. - Understand the benefits of using a Plaintiff Recovery Trust. - Find out how Eastern Point Trust Company can help maximize your settlement recovery. Contact Eastern Point Trust Company to learn more about legal and financial strategies to mitigate the plaintiff double tax and maximize your litigation recovery. Read more: https://www.easternpointtrust.com/articles/liars-damn-liars-defamation-and-double-taxation Learn about the Plaintiff Recovery Trust: https://www.easternpointtrust.com/plaintiff-recovery-trust

Qualified Settlement Funds (QSFs) have revolutionized the way settlements are handled, offering significant tax benefits and financial advantages for both defendants and plaintiffs. In this video, we explore the importance of QSFs, their history, and how they function in the settlement process. QSFs emerged in the 1980s to address the tax concerns of insurance companies, allowing them to deduct payments in the year of settlement rather than when the payments are distributed. This change was solidified by the enactment of Section 468B of the Internal Revenue Code in 1986. With a QSF, defendants can transfer settlement funds, receive an immediate tax deduction, and obtain a release of claims. Plaintiffs benefit by having the flexibility to finalize settlement terms without immediate tax implications, as the funds remain in the QSF until they are disbursed. This arrangement allows the QSF administrator to manage and allocate the settlement among claimants effectively. - Learn how QSFs provide immediate tax deductions for defendants. - Understand how plaintiffs can avoid immediate tax implications on settlement funds. - Discover the criteria and legal requirements for establishing a QSF. - Explore the financial benefits and strategic advantages of using QSFs in settlements. Despite initial opposition from some insurance companies and large businesses, recent favorable court rulings have solidified the use of QSFs. To qualify, a QSF must be established by a government authority and must address claims arising from a specific event or series of related events. The fund must be created as a trust under state laws, ensuring the assets are segregated from the parties involved. Contact Eastern Point Trust Company to learn more about Qualified Settlement Funds and how they can streamline your settlement process. Read more: https://www.easternpointtrust.com/articles/what-is-a-qualified-settlement-fund Learn about Qualified Settlement Funds: https://www.easternpointtrust.com/qsf-360-qualified-settlement-fund

In the current digital and highly charged political age, the power of words has never been more salient. In this video, we explore the severe implications of defamation and the financial burden known as the plaintiff double tax. It has become all too commonplace for words to be used as weapons for making untrue statements about a person or entity. A single untrue utterance can ripple through society, casting shadows of controversy and sometimes engendering significant legal implications. Unfortunately, because of the plaintiff double tax, defamation victims suffer twice: first by the defamation itself and second by how their litigation recovery is taxed. - Discover the intricacies of the plaintiff double tax and how it affects defamation victims, reducing their net proceeds from litigation recoveries. - Learn what the plaintiff double tax is and its implications. - Understand the Supreme Court case Commissioner v. Banks and its impact on defamation settlements. - Discover how the total value of awards and non-deductible attorney fees create a significant financial burden for plaintiffs. Contact Eastern Point Trust Company to learn more about legal and financial strategies to mitigate the plaintiff double tax and maximize your litigation recovery. Read more: https://www.easternpointtrust.com/articles/liars-damn-liars-defamation-and-double-taxation Learn about the Plaintiff Recovery Trust: https://www.easternpointtrust.com/plaintiff-recovery-trust