If you are trying to understand the settlement options that come with your personal injury claim, a Virginia Beach personal injury lawyer from Shapiro, Washburn & Sharp can explain the advantages and disadvantages of your choices. Although a lump-sum payment is the most common option in most verdicts and settlements, structured settlements are also worth examining.
If you have questions or are trying to navigate the intricacies of lump-sum payments and structured settlements, we urge you to use this blog as a jumping-off point. Keep in mind that your goal is not just to obtain a settlement that compensates you fairly for your damages but to ensure that your future is financially secure as well.
At Shapiro, Washburn & Sharp, our Virginia Beach personal injury lawyers have been offering dedicated advice and support to injured clients and their families since 1985. Call us today to schedule your free consultation.
In Virginia personal injury cases, the two main choices for settlements paid by the defendant’s insurer are structured settlements and lump sum payments.
A lump sum payment structure consists of one upfront payment for the full amount of your court award or settlement. You collect the entirety of your damages in a single go. Generally speaking, once your lawyer receives your settlement check, they deposit your funds into a legal trust account, deduct their expenses and fees, negotiate and settle any unpaid liens, and make out a check to you for the remainder.
When you receive your payment as a lump sum, you can access your money right away. This allows you to handle your financial obligations or invest as you see fit. A lot of personal injury victims find it comforting to have an extensive amount of money within easy reach, particularly if they have bills to deal with or substantial economic goals.
A structured settlement, on the other hand, spreads your settlement award out over a fixed period via a sequence of routine payments that can be structured in multiple ways, including annually, quarterly, or even monthly installments.
Structured settlements consist of a series of guaranteed payments and a prospective lump-sum payment at set intervals. The structure of your lump-sum payment will be tailored to your specific needs, taking into account factors such as ongoing care, medical bills, lost earnings, and long-term economic security. This can provide personal injury victims with financial stability by supplying a steady stream of income over time.
In most personal injury verdicts and settlements, a lump-sum payment is the most common choice because it offers numerous advantages.
As previously mentioned, a lump-sum payment provides quick access to your settlement funds and offers control and flexibility over how those funds are used. It streamlines money management and enables allocation best for you, so it can be used to address direct needs, make essential purchases, or invest.
Structured settlements also offer multiple advantages to personal injury victims, making them an appealing choice. Knowing the benefits will help you determine if a structured settlement is in your best interest and aligns with your long-term needs.
Possibly the biggest benefit of choosing a structured settlement is the security of a steady income. Through scheduled, steady payments, a structured settlement provides a dependable source of income over an established period. These ongoing payments can cover continued medical expenses, serve as reimbursement for lost earnings, and offer a financially secure future.
Tax advantages are another popular benefit of structured settlement payments. Although personal injury settlements are usually tax-free, no matter which payment schedule you select, you might be taxed on a portion of your settlement if you were, for example, awarded punitive damages. Structuring your payments may help you reduce or eliminate your tax obligations.
When you choose to structure your settlement, you can make your long-term financial security a priority. Structured settlements can be crafted to meet your unique needs by taking into account factors such as projected medical costs, ongoing care needs, and upcoming financial obligations. This customized approach offers a financial safety net and can provide you and your family with peace of mind for many years.
Understanding the benefits of both lump-sum payments and structured settlements is vital to making an informed decision about your case, your settlement, and your best interests.
When choosing between a lump-sum payment and a structured settlement, it is essential to carefully assess your individual circumstances, long-term needs, and financial goals. Although this blog has provided a summary of the benefits of both forms of payment, speaking with a skilled lawyer is strongly recommended.
The Virginia Beach personal injury lawyers at Shapiro, Washburn & Sharp can provide valuable insights, assist you in navigating your settlement, and ensure you make a well-informed decision that supports your goals and best interests.
For more than seven decades combined, our attorneys have advocated for victims of negligence-based accidents in Virginia Beach. We understand how nuanced personal injury cases can be and are here to make sure our clients receive the support they need to make the best possible decisions for their futures.
We have a strong track record of successfully representing injured clients and maximizing their financial recoveries, such as the $1 million settlement we obtained for a woman whose newborn experienced shoulder dystocia during delivery.
You can schedule a free consultation by contacting us at (833) 997-1774 or filling out our simple online contact form. We have offices in Virginia Beach, Norfolk, Portsmouth, and Hampton to better serve our clients.
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