If you have been the victim of a personal injury due to the negligence of another person, you deserve to receive the compensation you have earned. Once you go through the legal battle and win your case, you can decide if you wish to receive the earnings in one lump sum payment, or split it up into separate payments over a period of time. You will want to consult with your attorney on which option will be the best for you.
The more common option among individuals who win any type of legal case, but especially personal injury cases, is to receive their earnings in a lump sum. Generally the award for civil cases is around $25,000-$30,000, which is why a lump sum makes more sense since the earnings are fairly low. If your personal injury was more severe than normal, you may wish to spread out your earnings in separate payments since you will likely to have more medical bills down the road so you will have compensation coming in around that time, and your earnings will be larger compared to a minor personal injury.
Positives of Structured Settlement
If you decide to choose the structured settlement option, one positive is that they are paid using annuity. Annuity is basically a form of payment which collects interest over time, so your later payments down the road will be larger than your initial payments in the beginning, due to the interest accumulated. Another positive is that your structured settlement payments are free from state and federal taxes, so you will not be short changed.
With structured settlements, you can choose how much your initial payment will be. The rest of the award will be divided up evenly for your remaining payments. If you have medical bills that are due right away as a result of your injury, you can have that initial larger payment go towards those bills. If you know there are medical bills coming six months or one year from now, you can set up your payments so you will receive them around that time. Once you sign the paperwork for you payments, they cannot be changed, so make sure you choose the right plan for your life.
Contact a Lawyer
Once you have gone forth with your personal injury case, you can either continue on with your same lawyer or choose someone who focuses in future of estates like a Sacramento estate lawyer. They will be able to provide you with the best information when deciding whether to choose a lump sum payment, or a structured settlement. Don’t wait any longer, pick up the phone today.
Thanks to our contributors from Yee Law Group for their insight into estate planning with a structured settlement.