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TJ, Esq.
TJ, Esq., Attorney
Category: Legal
Satisfied Customers: 12404
Experience:  JD, MBA
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Legal Question: to; if possible

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If I decide to receive the lump sum check, then after receiving it I purchase a life plan similar to the one proposed by my attorney. Do I still get the tax free component similar to the one offered by signing through him and the firm proposed by him ?

Hi again.

You could get it tax free if the settlement is for pain and suffering. With regard to the lump sum, it depends on what the settlement compensates you for.
Customer: replied 4 years ago.

Hello Again

Sorry, i probably stated my question the wrong way, your previous info is clear.


My question: The lifetime benefits plan proposed by my attorney with monthly income and lump sums has a tax free component, according to him(by signing through him and the firm he chose). If I decide to receive the check myself then invest in an annuity similar to the one he proposed after, would I lose that tax free component in the lifetime benefits plan ?

Hi again.

You'd probably lose the tax free status, but to be honest, I can't say for sure. That is probably something that you'll need to ask your lawyer because he'd likely need to review the details of the annuity that you'd choose. I apologize for not giving a more definite answer.
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