Missy714,
Your attorney was very likely correct, but see, for example,
https://bloggerinterrupted.com/are-wrongful-death-settlements-taxable/
and
for any wrinkles that might have generated a 1099-MISC.
If the settlement is indeed exempt from tax, you will want to add a note to your tax return explaining why you didn't report the 1099-MISC as taxable income. Or you can later deal with a nastygram letter from the IRS proposing additional tax due which could take quite a lot of time and effort to resolve.
