When your injury claim settles for a large sum of money you may be prompted to accept structured settlements. Structured settlements are when the settlement value is paid out in installments over a period of time, rather than all at once in a lump sum. Your attorney, the defendant or a financial planner will suggest this option for many reasons.
Structured settlements may benefit the victim in an injury claim for tax purposes. When appropriately set up, structured settlements may reduce your tax obligations or in some cases be tax-free. Structured settlements can also prevent you from the danger of exhausting your funds before your future medical needs are taken care of.
In the case of a child victim, structured settlements can provide payments to benefit their life in the future. Since a child may require different medical procedures, surgeries, and rehabilitation as they continue to age, structured settlements may help provide the necessary funds for each stage of their teen and adult years.
Structured settlements for an injury claim may also be a burden to a victim. If a large purchase such as a vehicle modified for a disability or home remodeling to accommodate disabled access is necessary, the structured settlement payments may not be adequate. You should consult with your attorney to weigh the benefits and burdens structured settlements would have on your needs.
After a serious accident, you should be able to spend your time focusing on your recovery; not dealing with worrying about how your claim will be paid. Davis Levin Livingston will fight for your rights while you focus on healing. Contact us today for a free case evaluation – 866-806-4349.