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Has anyone had a client who received a payment as part of the Genworth class action settlement?
My client chose option 3… a reduced future long term care benefit in exchange for a lesser annual premium and a cash payment.
Although the settlement specifically takes no position on taxation (each member should ‘consult your tax advisor’), my reading interprets the payment as a constructive return of premiums in exchange for a lesser benefit - therefore taxable to the extent that the premiums were deducted in prior years.
I’d be interested in hearing opinions on this.
My client chose option 3… a reduced future long term care benefit in exchange for a lesser annual premium and a cash payment.
Although the settlement specifically takes no position on taxation (each member should ‘consult your tax advisor’), my reading interprets the payment as a constructive return of premiums in exchange for a lesser benefit - therefore taxable to the extent that the premiums were deducted in prior years.
I’d be interested in hearing opinions on this.
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