California  |  Legal Malpractice

It's a question of how the settlement is termed. Wrongful death, i.e. compensation for the loss of his affection and society, taxable. Compensation for bodily injuries to him during his lifetime including his pain and suffering, nontaxable (except possibly as part of his estate). Your own competent attorney should know how to set up the settlement with the respective insurance companies so that it is non-taxable to the extent possible.

This is not a legal malpractice question.