A CA resident had an adult daughter residing in Canada who was killed in a car vs. bike accident. The family is now receiving a settlement for various claims, including:
– Out of pocket expenses such as funeral, traveling, grief therapy, etc.
– Loss of income for mother and sister of deceased
– Limited non-pecuniary such as mental distress, psychological trauma, loss of guidance, care and companionship
Since this was essentially a wrongful death claim, and no medical expenses, funeral expenses, etc. were deducted, would all of the amount be excludable from income as it relates to personal physical injury?