3 Reasons To Accept A Structured Settlement In Your Personal Injury Case

If you are currently in the midst of a personal injury case, you may have been offered a structured settlement. This means that you will receive an annuity that pays out payments over a long period rather than one lump sum. Although the idea of getting a lump sum might seem more appealing, there are a few reasons why you may want to accept a structured settlement instead. These are a few reasons why.

1. A Structured Settlement is Tax-Free

First of all, a structured settlement can provide you with tax benefits when compared to a lump sum payment. In many cases, you have to file a lump sum payment on your income taxes as a form of income, which means that you could be stuck paying out a significant amount in taxes. In most cases, however, a structured settlement is tax-free.

2. You Can Ensure That Your Funds Last

It can be hard to manage a lump sum. Unfortunately, it can be easy to be tempted to spend too much when you have a large sum of cash in the bank. If you spend all of your money, however, you could find yourself struggling to make ends meet later on, especially if your injury is still affecting your ability to work.

3. You May Receive a Higher Payout and a Faster Agreement

Structured settlements also offer benefits to the parties that pay them out. This means that you might be offered a higher payout amount if you are willing to take it in the form of a structured settlement. In many cases, the structured settlement option allows the attorneys on both sides to negotiate. If you agree to this type of payment, you might find that you are offered more money and that the case is settled more quickly out of court, which can save money in legal fees and can allow you to put the situation behind you.

If you are currently awaiting a settlement for a personal injury, your lawyer may have talked to you about accepting a structured settlement instead of asking for a lump sum. Even though you might prefer the idea of getting all of your money at one time, you should at least consider this option. As you can see, a structured settlement can have its benefits. Along with these three advantages, your personal injury lawyer can talk to you about the other benefits that you can enjoy as well.

To learn more, contact a law firm like Tiefenthaler Law Office

About Me

The Internet Makes Learning about Law Easier than Ever

Unlike many children growing up today, I am old enough to remember what life was like before the internet became popular! Many years ago, I ended up in a messy legal situation that stemmed from a simple misunderstanding. It turned out that I actually did not break the law, and finding that out in court was a great relief! While I had a great lawyer who helped me during that time, reading some legal information for myself about the laws surrounding my incident could have greatly eased my worries during the stressful time. I have since dedicated myself to learning more about the law, so I never have to deal with a legal mess again. I thought I would make a blog to share some legal knowledge I have acquired along with some general legal tips. I hope I can help many people!



Latest Posts

12 July 2024
Dealing with the legal aspects of probate can be overwhelming and confusing, especially during a time of grief. That's why hiring a probate attorney c

17 May 2024
If you or someone you know has been involved in an accident that resulted in personal injury, you may be entitled to a settlement. Personal injury set

25 March 2024
Divorce represents a significant turning point in an individual's life, often accompanied by emotional, financial, and legal challenges. Seeking the e