Structured settlements are generally used to settle wrongful death and accident lawsuits. You have the option to designate part or all of your settlement to a structured annuity or receive it all in one lump sum. It may sound like a great idea to have a handful of cash at one time, but there are some reasons why you should accept the structured settlement, four of which are listed below.
A Sense of Security
If you receive your money all at once, it can be very tempting and you could very well spend all of it very quickly. You could also decide to invest the money, but the investment may not work in your favor. Getting payments will allow you to have the money you need, and you will not have to worry about running out of it. This is especially true if your injury has caused you to be out of work much longer than you anticipated.
If you choose a lump sum payment you will have to pay taxes on it, as it will be deemed as a form of income. If you are receiving a very high payment, these taxes will also be high. According to the National Structured Settlements Association, damages paid because of wrongful death or physical injury will be excluded from your income tax as long as it isn't in one large lump sum.
When you choose to receive payments, you can designate the money in many different ways. For example, you can choose for some of the money to go into a college fund for your child, pay for medical expenses, or be used for income replacement. You can choose how long you want to receive payments, such as for the length of your entire lifetime. The payments can be paid in equal installments, or the payments can be varied over time.
Structured settlements are often settled out of court. This means no court costs for you, as well as the time it will take to get through the court proceedings. If you are currently working, this can mean having a lower paycheck. Your attorney fees will likely be much less expensive as well because the settlement is quick.
A personal injury lawyer can be of great help to you, as they will know how to set up the structured settlement to ensure you get a fair amount of money. They will also deal with the opposing attorney for you, as well as the insurance companies that are likely involved in your personal injury case.
Hello, I'm Phillip Kerr and I just love the legal profession and courtroom drama. Have you ever watched judge shows on TV? I know that these shows are not an accurate representation of the courtroom, but there is something you may have noticed. Some individuals come into the courtroom well-dressed, articulate, respectful and with the knowledge and documents necessary to support a case, while others come unprepared, slovenly dressed and appear as if they do not have a care in the world. How you present yourself and the knowledge that you have of the law will have an impact on how you are treated, even if you have legal representation. This blog is designed to assist those who are going to trial in doing just that.