Awards for future losses arising from a wrongful death claim or from a claim for future costs of care need to be increased ("grossed-up") to offset the expected future income taxes to be incurred because of them. This calculation is exceedingly complex and basically requires an iterative estimate of the income taxes of the individual in all future years.

Where it is felt that the recipient of the award is incapable of looking after the funds awarded, it may be necessary to provide an allowance for fund management. This is designed to offset the fees paid to a fund manager. A similar allowance may also be applicable where a fund will be managed by the Public Guardian and Trustee. This office has a tariff of rates that it charges on managed funds.

Kevin Turnbull was a member of the BC Law Reform Commission advisory committee on tax gross-ups and fund management allowances. You can put that expertise to work for you by calling us at 778-298-1781.