P000612
February 12, 2002
Kenneth R. Feinberg, Esq., Special Master
Federal Victims' Compensation Fund
United States Department of Justice
950 Pennsylvania Avenue
Washington, DC 20530
Dear Mr. Feinberg:
We represent the family of one of the victims on Flight 11 and we were among those who met
with you on Thursday, February 7th in Boston. Initially, we would like to thank you for both
your presentation and willingness to answer difficult questions from the audience regarding the
tragic circumstances of September 11th.
At the meeting, we briefly commented on two items that we had previously submitted as
comments to Mr. Zwick on the Interim Rule. However, since the deadline for issuing the revised
regulations is upcoming, we thought it may be useful to reiterate these specific items.
Initially, as we mentioned at the meeting, there is no specific reference in the rules that awards
shall not be subject to federal estate taxation. You indicated that this may be included in a letter;
however, it would be advantageous for all if this were codified in the promulgated rules.
Obviously, most other comments and questions were addressed to the deductibility of collateral
sources, especially those that may be derived from life insurance proceeds. A 100% deduction of
life insurance proceeds may well negate any award for some individuals, except for the $250,000
amount you described.
A better approach may be to exclude the first $500,000 or $750,000 in life insurance proceeds
from collateral source setoff in determining awards. Otherwise, the setoff amount could be
determined by a sliding scale depending upon the total collateral sources of assets in the
decedent's estate. In any event, it appears that a more equitable amendment of this component of
the rule is needed.
Again, thank you for your presentation last week. We look forward to continuing to work with
you in the future.
Very truly yours,
Individual Comment
Wellesley Hills, MA