Denial Will Cost YOU Money!
I am concerned that our big lawsuit, The Exxon Valdez Case, is going to end very abruptly, very soon, like within the next two years--or even sooner. If this is really so, you'd think I would be happy, right? Why the concern?
We have all heard our lawyers tell us that this lawsuit "will be over in two years." The lawyers have been saying this for twelve years. No one believes them any more. This situation has been discouraging for everyone involved, including our lawyers who were also victims of optimism. The unanticipated delays were caused by a combination of Exxon's appeals and simply the way the court system works with large claims such as ours.
Now it seems many people are in a State of Denial that this travesty of justice will ever be over. People living in Denial are not prepared to deal with the financial consequences of their share of the award. So if the end comes sooner than people expect, much of an individual's share of the award could wind up in the IRS coffers rather than in our own communities. And that is why I am concerned.
First, let me explain why I think The Exxon Valdez Case is almost over. Once the Ninth Circuit makes a ruling on this last issue before it, a NINE-MONTH clock starts ticking. This clock is out of Exxon's control. In other words, Exxon can't stall, stall, stall through appeals any longer.
Once the Ninth Circuit rules, it's just like waiting for a baby. It's going to happen on a set timeline. It's inevitable. And it might happen sooner rather than later.
Okay, so what's the worry? You'll get a nice check, minus court awarded fees and costs. Before you spend the rest, you might want to save out at least 30% for the IRS. What?!
If you recall in 1996, Congress passed a law making punitive damages taxable retro to our 1994 award. Seems the $5 billion figure caught their attention. So this means many fishermen and other plaintiffs will be in the highest income tax bracket for one year, the year the case is over.
And that means, unless you take the time to plan ahead and start formulating a tax strategy NOW, you could wind up giving a large chunk of your award to the IRS.
There are tax strategies to minimize taxable income through directed giving and trusts. Many of us live in communities that are still trying to recover from this disaster. Money that you will owe the IRS from your punitive award could go instead into our own community if you start planning for this NOW.
That's why I joined the ORA Foundation. As a community foundation, we have the capacity to help people reduce their tax burden by giving to their own communities. It's a win-win situation--given enough lead time to plan.
It is important for everyone to set aside DENIAL and contact ORA Foudation, through your local Board member, to learn more about advance planning and what you can do to save money and help your family and community.