Fire victim trust next payment 2024
Related Tests for Tax
Robert W. Wood
Managing Partner
Wood LLP
Email:wood@WoodLLP.com
Univ of Chicago Law School
www.woodLLP.com
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
See more...
Tax relief for wildfire victims has been a boiling topic. When a larger tax bill with wildfire tax relief seemed poised to fail in the Senate (as it eventually did), the House passed in May of this year an older stand-alone bill, H.R. 5863, the "Federal Disaster Relief Proceed of 2023" that contained only the disaster relief provisions. H.R. 5863 passed the House by a large margin, 382 in favor and only 7 against. The Senate has finally passed it as well, by unanimous voice vote. President Biden is expected to sign the bill into law.
California's devastating wildfires own included the 2015 Butte passion, the 2017 North Bay Fires, the 2017 Thomas Fire, the 2018 Mendocino Complex Fire, the 2018 Woolsey Fire, the 2019 Kincade Fire, the 2018 Camp Fire, the 2020 Zogg Heat, the 2020 August Complex Flame, and the 2021 Dixie Heat. There have also been enormous wildfires in recent years in Washington, Kansas, Oklahoma, Tennessee, Montana, Arizona,
Fire Victim Trust increases payments to California fire survivors
Fire Victim Trust raises pro rata payments for survivors
Cathy Yanni, the Trustee of the Fire Victim Trust (FVT), has announced an increase in the pro rata payment from 60% to 66%, effective from April 25, 2024.
This decision comes after the Trust successfully sold its remaining 477 million shares of Pacific Gas & Electric (PG&E) stock, which were awarded during the bankruptcy proceedings.
This move is set to enhance the financial assistance provided to the survivors of various catastrophic fires in California.
“With $1.2 billion in additional liquidity from our final stock sales and 97% of claims now accepted and final, we are confident we can safely increase the pro rata payment percentage for all fire survivors by six percent,” Cathy Yanni stated.
The FVT’s journey and stock sales
Established in July 2020, the FVT was designed to facilitate and expedite the compensation of claims arising from the 2015 Butte Fire, 2017 North Bay Fires, and 2018 Camp Fire.
It was funded through both cash and stock shares as part of PG&E’s Chapter 11 Plan of Reorganization.
Following it
Fire Victim Trust to issue new round of payments to PG&E wildfire claimants
To date, victims have received up to 60% on their claims for homes, businesses and loved ones lost in the 2015 Butte Fire, the 2017 North Bay wildfires and the 2018 Camp Fire. That will now bump up to 66% starting April 25.
"We have worked diligently from the beginning to compensate fire survivors for their losses, and we will continue to do so to bring closure to this process for each of you," Fire Victim Trust Administrator Cathy Yanni said in a March 12 letter.
Since its 2020 inception, the trust has been dogged with questions over long-awaited compensation. A fierce struggle between shareholders, bondholders, insurers and other creditors over PG&E's assets in bankruptcy court left more than 70,000 victims to split $13.5 billion, with only half in cash and the rest in the utility's ailing stock.
The trust has slowly sold off chunks of shares, waiting for the st
A motion filed in a San Francisco bankruptcy court asks a judge to hold off the requirement of releasing another round of funds to victims of utility-caused wildfires, because the manner in which the funds are being administered "contradicts" what the victims voted for in approving a trust, according to the fire victim who filed the motion.
The filer, Will Abrams, who is a victim of the 2017 North Bay complex of wildfires and a ratepayer advocate, said that what the trustee of the wildfire victim fund is asking is "likely unconstitutional" and akin to a "bait and switch" ploy.
kAmx? 2? pAC:= g =6EE6C E@ G:4E:>D @7 H:=57:C6D 42FD65 3J !24:7:4 v2D U2>Aj t=64EC:4[ r2E9J *2??:[ E96 ECFDE66[ D2:5 E96 ECFDE 42? 5:DEC:3FE6 >@C6 E92? QS`]a 3:==:@? :? 255:E:@?2= A2J>6?ED E@ 7:C6 DFCG:G@CDQ DE2CE:?8 @? pAC:= ad] %96 2>@F?E C6AC6D6?ED 2 e\A6C46?E QECF6\FAQ A2J>6?E[ FA 7C@> E96 4FCC6?E e_ A6C46?E[ *2??: D2:5] Qp7E6C E92E[ E96 ECFDE H:== A2J 2== AC@ C2E2 A2J>6?ED 2E ee A6C46?E @7 E96 7:?2= 2H2C5 2>@F?EQ Wk2 9C67lQ9EEADi^^HHH]?6HD52E2]4@>^42=:7@C?:206?6C8J0>2C<6ED^C68:@?2=0C@F?5FA^7:C6\G:4E:>\ECFDE\E@\:DDF6\2?@E96C\e\A6C46?E\E@\A8\6\H:=57:C6\G:4E:&
Taxable Income Changes for Wildfire Victims: What You Need to Know
In December 2024, the Federal Disaster Tax Relief Act was enacted, bringing significant tax relief to victims of natural disasters, including wildfires. This legislation, signed into law by President Biden on December 12, 2024, retroactively exempts many legal settlements resulting from wildfires from federal income tax for tax years beginning after December 31, 2019, and before January 1, 2026.
This new federal law aligns with California’s state tax policy, which has already provided similar relief. In 2022, California passed legislation exempting wildfire settlements from state income tax, ensuring that victims did not face additional financial burdens. The Federal Disaster Tax Relief Act now extends this relief at the federal level, catching up with California’s existing protections.
Key Provisions of the Federal Disaster Tax Relief Act
- Exclusion of Settlements from Taxable Income: Wildfire victims receiving legal settlements, including those from the Fire Victim Trust (FVT), can now exclude these amounts from their federal taxable income. This change reduces overall tax liability and