Tax-free annuities are common in lawsuit settlements. In 1986, the first year the settlement took effect, he received a lump sum payment of $300,000 and began collecting monthly payments of $5,000.
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Many Texans ask why Governor Greg Abbott is in a wheelchair. His story is one of triumph over tragedy. On a summer day in July 1984, Governor Greg Abbott, a 26-year-old recent law school graduate, decided to take a break from studying for the bar exam by going for a jog in a west Houston neighborhood as he’d done many times before.
When a 75-foot oak tree fell on top of 26-year-old Greg Abbott in a freak accident in the summer of 1984, it crushed his spine and took the use of his legs. It could have also crushed the dreams he had for the rest of his life but thanks to God, it didn't, says the man who is now governor of Texas.
In 1985 , Abbott sued the homeowner whose tree fell on him, along with the tree service company that had inspected the giant post oak before it crashed down on a windy summer day in July of 1984. Under the terms of a settlement he reached with the two defendants in 1986, Abbott receives guaranteed monthly income plus periodic lump sum payments — both of which increase over time to keep up with the rising cost of living. The monthly payments rise by 4 percent annually with compounded interest.
This year, 29 years after the accident, Abbott receives about $14,400 a month. On Nov. 1, that figure will go up by about $500. On that same date, he’ll also get a $400,000 lump sum payment. All told this year, Abbott can expect to receive about $570,000 from the structured settlement, whose proceeds are tax-free and do not have to be reported to the Internal Revenue Service. Tax-free annuities are common in lawsuit settlements.
Attorney General Greg Abbott, paralyzed by a falling oak tree in 1984, will receive more than half a million dollars this year from a legal settlement that guarantees him a six-figure yearly income for the rest of his life.
Since 1989, Abbott has been receiving lump sum payments every three years. The last one, for $740,020, is due in 2022 . Abbott recalled in the interview that the net present value of the settlement was roughly $3 million when the deal was struck in 1986, but that was based on a 20-year life span.
Tax-free annuities are common in lawsuit settlements. In 1986, the first year the settlement took effect, he received a lump sum payment of $300,000 and began collecting monthly payments of $5,000. Today, using the federal Bureau of Labor Statistics inflation calculator, that first lump sum payment would be worth about $640,000 and ...
Abbott’s lawyer, Don Riddle, received more than $1 million from the settlement, the document indicates. Abbott said he has relied on the money he got from the settlement to help him pay for nearly three decades of medical expenses and other costs associated with being paralyzed from the waist down.
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There are several steps you will need to follow in order to get your money. Read all the paperwork carefully.
In general, lawsuits that deal with wages are treated as wages. A lawsuit that deals with injuries or damages are not. However, this is not cut and dried, so always speak with a professional to determine how your lawsuit is laid out and how the damages are allocated.
In 1985 , Abbott sued the homeowner whose tree fell on him, along with the tree service company that had inspected the giant post oak before it crashed down on a windy summer day in July of 1984. Under the terms of a settlement he reached with the two defendants in 1986, Abbott receives guaranteed monthly income plus periodic lump sum payments — both of which increase over time to keep up with the rising cost of living. The monthly payments rise by 4 percent annually with compounded interest.
This year, 29 years after the accident, Abbott receives about $14,400 a month. On Nov. 1, that figure will go up by about $500. On that same date, he’ll also get a $400,000 lump sum payment. All told this year, Abbott can expect to receive about $570,000 from the structured settlement, whose proceeds are tax-free and do not have to be reported to the Internal Revenue Service. Tax-free annuities are common in lawsuit settlements.
Attorney General Greg Abbott, paralyzed by a falling oak tree in 1984, will receive more than half a million dollars this year from a legal settlement that guarantees him a six-figure yearly income for the rest of his life.
Since 1989, Abbott has been receiving lump sum payments every three years. The last one, for $740,020, is due in 2022 . Abbott recalled in the interview that the net present value of the settlement was roughly $3 million when the deal was struck in 1986, but that was based on a 20-year life span.
Tax-free annuities are common in lawsuit settlements. In 1986, the first year the settlement took effect, he received a lump sum payment of $300,000 and began collecting monthly payments of $5,000. Today, using the federal Bureau of Labor Statistics inflation calculator, that first lump sum payment would be worth about $640,000 and ...
Abbott’s lawyer, Don Riddle, received more than $1 million from the settlement, the document indicates. Abbott said he has relied on the money he got from the settlement to help him pay for nearly three decades of medical expenses and other costs associated with being paralyzed from the waist down.
Texas Tribune donors or members may be quoted or mentioned in our stories, or may be the subject of them. For a complete list of contributors, click here.