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Are Legal Settlements & Restitution Taxable Income?

April 26, 2017accidents attorneys free legal advice income Legal legal forms Restitution settlements tax taxable

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Are Legal Settlements & Restitution Taxable Income?

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Jurisdiction/Place: Hi, I haven’t been here for awhile. My Dad’s broker stole money from him. My dad has passed away. His Estate is receiving restitution from the broker. The Estate also just received a settlement from the brokerage. The settlement was reached through Mediation, to discharge an NASD claim file against the brokerage. Trust and Estate tax rates being what they are—35%!!!!—I am curious as to whether there will be anything left, after attorney fees and taxes. Are the restituiton payments and the settlement taxable as income to the estate? Thanks.