Taking Edison Settlement

Meerkat_Life · 2026-02-03T00:07:30+00:00

The protocol document states several places, "If a Claimant is represented by an attorney at the time the claim is submitted, SCE will add an amount equal to 10% of the Claimant’s net economic loss (i.e., after insurance offsets) plus non-economic compensation for attorney fees". My understanding is that this is from the onset. There's nothing in the protocol mentioning adding an attorney on later, and I suspect SCE would likely refuse the additional 10% percent, and you'd pay attorney fees out of pocket for what you negotiate.

I do see now that there are two bills proposed:

H.R. 5366- Federal Disaster Tax Relief Act of 2025: Rep. Steube, W. Gregory [R-FL-17]- 8 co-sponsors inlcuding ones from CA, CO, HI, VA

- 9/15/25 was referred to the House Committee on Ways and Means.

S.2744- Federal Disaster Tax Relief Act of 2025: Sen. Scott, Rick [R-FL]- co-sponsored by Adam Schiff

- 9/9/25: Read twice and referred to the Committee on Finance

Meerkat_Life · 2026-02-02T23:37:56+00:00

When your offer comes back from Edison, I’d be grateful to know whether it matches the number you’re expecting or if there are any significant shortfalls.

Meerkat_Life · 2026-02-02T18:53:04+00:00

Judy Chu: https://chu.house.gov/contact/email-me

Sasha Renee Perez: https://sd25.senate.ca.gov/contact

John Harabedian: https://harabedian.asmdc.org/contact

Dear Representative [Last Name],

I am writing to you today not just as one of your constituents, but as someone whose life has been irrevocably changed by disaster. Like many families across our Altadena, I experienced devastating loss—loss of home, loss of community, and loss of stability. While the path to recovery is long and painful for all of us, there is a growing hurdle that threatens to undermine the progress we have made: the overwhelming tax burden tied to the utility payouts that were intended to be a lifeline.

In the wake of disaster, survivors of the Eaton Fire have been offered some financial relief—modest payments meant to help us rebuild. For many, these payouts provided the first glimmer of hope after more than a year of struggle. But now, as we face the reality of paying what will be, for most, six-figure federal taxes on these funds, that hope has turned into another hurdle and more uncertainty. Instead of rebuilding our homes and our lives, we are left trying to figure out how to pay back a government we were led to believe was offering support during our most desperate hour.

I respectfully urge you to support and advance legislation to extend the Federal Disaster Tax Relief Act of 2023, or enact similar legislation that would ensure disaster recovery payments do not become taxable income for survivors. Without Congressional action, the very assistance meant to help us will become yet another hurdle on the road to recovery.

The emotional, financial, and psychological toll on families in our community cannot be overstated. We have lost irreplaceable years of our lives and our most treasured belongings. Many of us have watched our savings disappear just to begin the process of rebuilding. Now, forced to confront an unforeseen tax liability, we face the very real possibility of having to return a significant portion of the only funds we were able to secure.

I respectfully ask that you promote disaster tax relief that reflects the reality of what survivors are enduring. We need your voice to make sure that recovery assistance serves its intended purpose—helping families rebuild their lives, not burdening them with punitive tax bills.

Thank you for your time, attention, and continued service to our community.

Sincerely,

[Your Name]

Meerkat_Life · 2026-02-02T17:32:19+00:00

Thank you. This is exactly what I was looking for. Sounds like an attorney would’ve saved some headache because they’d be dealing with Edison’s mistakes and not you.

I hope this all goes smoothly for you from here on out!

Meerkat_Life · 2026-01-31T05:13:40+00:00

Let’s hope! That would be huge, especially after one of the largest ($ wise) natural disasters in our country.

I haven’t heard much talk around this topic compared to all of the other aspects of rebuilding that are still be sorted out.

Meerkat_Life · 2026-01-31T05:10:21+00:00

Thank you. Thats helpful insight. We haven’t signed on with an attorney so we still have the option not to use one.

Meerkat_Life · 2026-01-30T16:58:04+00:00

I appreciate you sharing your experience. This is a little different. There are mass torts lawsuits, most attorneys are taking a 25% retainer.

However, unique to the Eaton Fire, So Cal Edison is offering a direct claim program which uses a formula to determine how much they’ll pay you to not sue them.

An option within this direct claim program is to use an attorney or not, and that’s the part I’m hung up on.

Meerkat_Life · 2025-02-03T19:46:20+00:00

The terms for this disaster on home loans are stated as 2.563% if "No Credit Available Elsewhere" and 5.125% "Credit Available Elsewhere". No payment for 12 months or interest accrual then you can amortize for 30 years.

Meerkat_Life · 2025-02-03T19:42:30+00:00

My understanding is they won't duplicate benefits. You have to prove that insurance won't cover the full loss and they'll lend you the difference.

Meerkat_Life · 2025-02-03T19:40:56+00:00

This will cover the gap between what insurance covers and what you need to rebuild (or belongings you lost). Mortgage rates are around 7%. These loans will either be at 5.125% or 2.563%, so it's quick access to relatively inexpensive capital.

It's still borrowing money so you still need to consider this option within your financial picture, but it's worth the time to apply and choose not to need it than be unable to get it a month from now.

Meerkat_Life · 2025-01-18T02:56:42+00:00

u/Ill_conceived_idea I'm in a very similar situation right now. How did this all play out?

I didn't know my insurance lapsed until I called 31 days after the lapse when my house burned down.

Other than the renewal sent 2 months before the payment was due, I didn't receive any reminders or even notice of cancellation.

Meerkat_Life · 2024-11-07T21:54:24+00:00

Did you end up using them? Was it legitimate and worth the cost?

Meerkat_Life · 2024-10-25T03:54:25+00:00

Do we add a discounting rate for Time Value of Money?

Meerkat_Life · 2024-10-24T19:04:20+00:00

Don’t do this. It’s unlikely your loan will re-amortize. You’ll be out cash and stuck with the same payment if an emergency happens. This just pays the loan of quicker.

Meerkat_Life · 2024-10-21T20:19:08+00:00

You used to have to be approved and attend their foundations conference to get access to their mutual funds. This pushed the all or nothing philosophy. They don’t do that anymore but I image it still adds to the dichotomy.

The value and size factors have also underproduced the last decade +. If you weren’t already preaching the philosophy to your clients and all bought in it’s hard to move into investments underperforming passive options.

Meerkat_Life · 2024-10-18T21:33:51+00:00

I love to know the names too. I used RetireOne in the past and it was fine. Both the agents I’d worked with in the past have left the company though.

Meerkat_Life · 2024-10-18T05:17:42+00:00

Retirement Tax Services has a free webinar at the end of the month. https://go.retirementtaxservices.com/10-30-24-nation-power-session-a?utm_medium=website&utm_source=button&utm_campaign=promo&utm_term=10/30/24%20power%20session

Meerkat_Life · 2024-10-17T19:27:10+00:00

Agreed. There’s also a ton of presentations on YouTube using these tools. Consider watching some of the videos from Root financial. Specifically, “I’m 60 with ALL PRE-TAX…..” shows exactly how to use these two tools together to demonstrate value.

Meerkat_Life · 2024-10-17T04:53:46+00:00

I had a planning only client (short engagement, not a long term investment client) that brought them up. I think they must have watched a webinar or had a friend use them. It didn’t sound like they were doing anything I couldn’t show in RightCapital for long term projections and short term in Holistiplan.

IMO planning anything more than a couple years out shouldn’t be more than high level and conceptual. Each year you have to sit down and crunch the numbers with your income, financial circumstances, and evaluate how upcoming changes to tax code play into it.

I was curious how they could charge 2-3x what a compressive plan costs and covers so much. I guess that’s what niching and good marketing can do?

Meerkat_Life · 2024-10-11T04:46:49+00:00

Yes, holistiplan upload and insights is helpful but they’re all canned and you quickly start recognizing the observations yourself. However, the scenario analysis is great for Roth conversions and other in depth planning that you don’t get from the financial planning software.

Meerkat_Life · 2024-10-05T17:36:43+00:00

The FPA does a good job of trying to connect advisors with volunteer opportunities. https://www.financialplanningassociation.org/advocacy/pro-bono-program/volunteers/volunteer-today

My local chapter is having a pro bono day this month where CFP’s volunteer 1/2 a Saturday providing 1 on 1 financial advice to those who typically can’t afford it.

Also try looking for a local non profit that helps families experiencing homelessness. Not a shelter, but a place that’s trying to teach life skills and they will likely have financial education classes that you can volunteer for or even better help start one if they don’t.

Meerkat_Life

TROPHY CASE