Personal Injury Structured Settlement
At the end of a personal injury lawsuit, a person who has suffered an injury may be able to obtain compensation from the guilty party. This compensation can take a number of forms.
One type of financial resolution is the personal injury structured settlement, which allows plaintiffs who win or settle their personal injury claim to receive payments over an extended period of time, rather than in a one-time lump sum.
Some of the pros and cons of a structured settlement are discussed below. Or, for direct answers about your case, complete the form on this page to connect with a local personal injury lawyer for free.
Benefits of a Personal Injury Structured Settlement
The structured personal injury settlement, allows people who win or settle personal injury claims to collect their payments over the course of several years.
This arrangement may offer several benefits, including:
- Flexibility. Depending on the nature of the claim, a personal injury structured settlement may allow for a few large payments, several smaller payments, or anything in between.
- Tax benefits. If properly drafted, a structured settlement may significantly reduce the recipient’s tax obligations.
- Safety. By allowing for several small payments over a long period of time, a structured settlement may make a victorious plaintiff less susceptible to potential scams.
In addition to these benefits, a structured settlement may also be useful for minors who are not yet old enough to receive the full value of their personal injury settlement.
Other Issues to Consider With Structured Settlements
While a structured settlement may be the most suitable ending to a personal injury lawsuit, there are some potential downsides you may wish to discuss with your attorney.
Some issues with structured settlements to consider include:
- Amount of compensation. If a personal injury claim is settled for a small amount of money, many plaintiffs may prefer to simply accept a lump sum payment.
- Life expectancy. This is a somewhat morbid consideration, but if someone is in a later stage of life, he or she may prefer to collect the bulk of the settlement upfront.
- Fees. Over the course of several years, a number of fees may accrue in the structured settlement process. Make sure to agree on fee terms before settling on a payment schedule.
- Current bills: If you need money right away to cover current medical bills or bills that piled up during missed time from work you may not be able to wait for all your payments to trickle in.
To learn more about the potential benefits of a structured settlement, or for more information on your unique claim, contact a local injury lawyer today.
The above summary is for informational purposes only and is not legal advice. For legal advice on your particular situation, consult a local personal injury attorney.