Deductions & credits

no, you can't claim it.  it's his estate that is liable. if his estate was large enough to require the filing of an estate tax return  - form 706 (United States Estate Tax Return)  this could be claimed as a deduction on it.    personal casualty losses are no longer deductible on income tax returns so the settlement can not be claimed on form 1041  (U.S. Income Tax Return for Estates and Trusts)