If you’ve been injured by someone else’s negligence and negotiate a settlement for your compensation, your settlement will likely be paid out in one of two ways – either in a lump sum or in a structured settlement. Because your settlement is closely associated with your ability to achieve your fullest recovery, it’s in your best interest to have an experienced Greenville personal injury attorney in your corner.
Your Settlement Payout
If you have decisions to make about your settlement payout, there are some important points to keep in mind, including:
- With a lump sum payout in which you receive your entire settlement amount upfront, you achieve the fluidity to make your own financial decisions.
- While the lump sum you receive is not taxable, any return on investments made with the money is.
- Structured payouts are similarly tax-free, but any increase in value over time remains tax-free with this payout plan.
- With structured plans, you can arrange a life-only annuity that will pay out over the course of your life. There is also the option of a period certain annuity that pays out for the amount of time contracted.
- With structured plans, there are additional factors, such as payment frequency, amount of distribution, and death benefits, to consider.
- Once a structured plan is agreed upon, it cannot be altered.
An Experienced Greenville Personal Injury Attorney Is Standing by to Help
The seasoned Greenville, South Carolina, personal injury lawyers at Upstate Personal Injury Lawyers, LLC, have the experience, drive, and legal insight to help you make the right decisions for you. To schedule a free consultation, please don’t wait to contact or call us at 864-531-7969 today.
When is a lump sum settlement a good idea?
Often, claimants choose lump sum settlements when they want to use the money to help secure their financial future, such as by starting a business.
What are the most important considerations to keep in mind when choosing a settlement option?
Generally, the following considerations are critical to the decision-making process:
- Your financial plans
- Your money management skills
- The tax implications involved
Is one form of settlement better than the other?
Each form of settlement has pros and cons, and choosing the right one for you is a personal decision that you should make with the careful legal guidance of your dedicated personal injury attorney.