There are many parts of your case that your auto accident lawyer can help with, from filing a claim to negotiating a settlement with the insurance company. One important thing you should discuss with your lawyer is what type of settlement you should accept. Settlements are either paid out in a lump sum or a structured settlement. One may work better for your situation than another. Your attorney can help you understand the options and negotiate the settlement based on what suits you best.
Talk to your Auto Accident Lawyer About Settlement Options
Your accident attorney is here to help you as you seek compensation after a car accident. They can help you explore all the options for your case and offer guidance based on your case and individual circumstances. One thing it’s important to sort out is whether you want a lump sum or a structured settlement for your damages. Generally, you can choose between the two whether you settle out of court or a jury awards you damages after a personal injury trial. The one you prefer can affect how your auto accident lawyer negotiates on your behalf.
Lump Sum Settlements vs. Structured Settlements
Most personal injury settlements are paid out in a lump sum. This is where the insurance company cuts you a check for the total amount you agree on. You then use that check to pay off any medical bills, pay your car accident attorney for their services, and then you get anything left over to compensate you for things like pain and suffering and other non-economic damages. You can use the rest for practically anything you wish, like purchasing a house or financial investments.
A structured settlement is an option where you receive your settlement in chunks over a period of time. There is a lot of flexibility in how a structured settlement works, and you can negotiate the terms with the insurance company. However, generally they provide monthly, quarterly, or yearly payments for a set number of years or even for life. For example, say you agree to a settlement amount of $500,000. You can set up your structured settlement so that you receive $50,000 each year in monthly payments of $4,166 or so for the next ten years. You often also have the option of taking a partial lump sum payment to pay off things like medical bills and your lawyer’s compensation and then receiving the rest in a structured settlement.
There are some advantages to this. First, you don’t have to manage the money yourself and there’s no risk of you spending it all quickly. It also can have some tax advantages. Personal injury settlements are typically tax exempt. However, any profit you make from that money if you invest it is typically taxable. One important thing to know is that most structured settlement payments are tax exempt, which could save you in taxes in the long-run. Talk to your accident attorney to determine which option is right for you.
Maida Law Firm – An Accident Attorney that Fights For You
Our team at Maida Law Firm is here to fight for your right to compensation after a car accident. Our goal is to help you recover maximum compensation after a car accident. We are a law firm with experienced attorneys to provide quality legal services. We have helped countless clients win their cases in and out of court. What’s more, you owe us nothing if we can’t help you win your case. Contact us now for a free case evaluation!