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Personal Injury attorney
After a horrible accident the one thing we look forward to is the settlement. That after months or years of evidence gathering, medical treatment, negotiations and a possible court appearance, you can finally put your mind at ease as your case will finally come to a close as signaled by the acquisition of your settlement. The settlement not only heralds the end of your case, but it also signifies that you have, in fact, received justice for your experienced plight.
When you receive a settlement, most people prefer to get it in the one-and-done lump sum check. However, what most people don’t know is that you can receive your settlement in another way: a structured settlement. But what type of disbursement is right for you? What are the benefits of each and why?
Single: A single check is the traditional means of receiving your settlement where all of the funds from the settlement (after legal fees, liens, etc.) are placed in check format and given to you, marking the completion of the case. This can be beneficial to you if you have several pressing needs and bills to pay that you are trying to get out of the way with great urgency. Having the one lump sum will allow you to address all of these needs with the peace of mind that you can cover all your financial responsibilities, thus allowing you to kill several birds with one stone. You will, however, pay more in taxes for that year. So, you will need to be cautious and not spend the sum too lavishly.
Structured: Structured Settlements are given in special circumstances. The first part of the settlement is given to the Plaintiff. The remainder is handed over to another insurer that handles structured settlements. That insurer will hand out the remainder monthly or seasonally. With smaller settlements, the “single check” is the standard, but with much larger sums of about $150,000 or more, it’s much more preferable to issue the structured settlement, as it prevents Plaintiffs from spending it too lavishly while also saving them money on their taxes. The Defendant’s party may try to pressure you to accept a structured settlement for an amount that is much less than $150,000. That’s because the defendant often doesn’t have the funds to pay the settlement. However, the general idea is that if the sum is smaller, a Plaintiff should take the single settlement over the structured settlement or let the Defendant know that the case won’t leave court.