Personal Injury Lawyer Virginia Beach

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 popular option for most verdicts and settlements, structured settlements are also another option worth examining.

If you have questions or are currently trying to circumnavigate the intricacies of lump sum payments and structured settlements, we urge you to reflect on the information in this blog as a jumping-off point. Keep in mind that your goal is not to just 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.

How Does a Lump Sum Differ From a Structured Settlement?

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 are able to access your money right away. This makes it possible for you to handle your monetary 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 encompass a variety of assured payments and prospective lump sum payments at distinct intervals. The structure of your lump sum payment will be tailored to meet your specific needs, taking into consideration factors including 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.

What Are the Advantages of a Lump Sum Settlement?

For the majority of personal injury verdicts and settlements, a lump sum payment is the most common choice as they have numerous advantages.

As previously mentioned, a lump sum payment allows quick access to your settlement funds and offers control and flexibility over how those funds are used. It streamlines money management and makes bespoke allocation of the money possible so it can be used to address direct needs, make essential purchases, or invest.

  • Prompt Access to Funds: The primary benefit of a lump sum settlement is having immediate access to your settlement. This can be highly advantageous if you have unpaid debts, considerable medical expenses, or other important financial obligations.
  • Control and Flexibility: A lump sum payment also gives you more control and flexibility over how you use your money. Whether it’s paying off rehabilitation costs, and medical expenses, making significant purchases, or investing, the choice is up to you. This adaptability lets you tailor your funds according to your current and anticipated economic needs, and make changes should something change unexpectedly.
  • Financial Management is Simplified: Lump sum payments can also make financial management easier. Instead of dealing with a payment structured over a lengthy time period, you have the whole of your damages at your beck and call. This simplifies financial planning and does not require ongoing payment schedules to be monitored.

What Are the Advantages of a Structured Settlement?

Structured settlements also offer multiple advantages to personal injury victims that make them an appealing choice as well. Knowing the benefits will help you determine if a structured settlement is in your best interest and aligns with your long-term needs.

Consistent Income

Possibly the biggest benefit of choosing a structured settlement is the security of a steady income. Through prescheduled, steady payments, a structured settlement supplies a dependable source of income stretched out 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

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 might make it possible for you to eliminate or lower your tax obligations.

Financial Security

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 various factors like projected medical costs, continuing care needs, and upcoming monetary 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 when it comes to making an educated choice about your case, your settlement, and your best interests.

How Can Our Firm Help?

When making a choice between a lump sum payment and a structured settlement, it is essential to conscientiously assess your individual circumstances, long-term needs, and financial goals. Although this blog has given you a summary of the benefits associated with both forms of payment, speaking to 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 combined decades, our attorneys have been advocating 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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