How Are Personal Injury Settlements Paid Out in Philadelphia?
If you have been awarded a settlement in a personal injury lawsuit, you may be asking, How are personal injury settlements paid out? Essentially, you have two payment options – a lump sum or payment over time. There are a number of considerations that go into this choice, so it is best to consult with a financial professional before you make your final decision.
If you ask for a lump sum, you will receive the entire amount of your settlement in one payment. If you choose a structured settlement, you can decide how you want to receive the money, the start and end date of the distribution, as well as how much and over what period of time. Once you decide how you want to receive your settlement, you will not be able to change the terms, so it’s important you carefully consider your needs before you sign. I’ve broken down some of these considerations for you.
How Your Financial Savvy Affect Which Settlement Type Is Right for You
If you are great with money and enjoy managing your own investment portfolio, you might want to consider accepting your settlement in one lump sum. This gives you the flexibility to grow your money however you like and to diversify your portfolio on your own terms. Your settlement money is not taxable, but any profit you make from investing this money is. If you have a financial manager you trust, this might be a great option. If, however, you prefer not to manage your money, you might consider a structured settlement instead.
How Your Age Affects What Type of Personal Injury Settlement You Want
If the recipient of the settlement is a minor, a structured settlement is likely the better choice. The structure would be established upfront so that the money would be available for tuition and living expenses until the child reaches a certain age. In this scenario, the court would appoint a guardian to manage the money for a minor child, so it is used for their benefit.
If you are more on the senior side of the spectrum, you might want to consider a lump sum and set up an annuity that secures your retirement. A financial advisor or estate lawyer can help you set up a trust.
Your Immediate Expenses After an Injury
When weighing your options, remember that you will have some immediate expenses, such as attorney’s fees and medical bills. You might have other debts from not working, or you might have modified your home and/or car to accommodate a disability. In the interest of gaining the most benefit from your settlement money, make sure you know what these expenses will be and make sure you have enough liquid assets to cover your early costs.
Your Anticipated Expenses
There are many financial variables to consider throughout the average lifespan. Some of these might include private school tuition, college, and graduate school tuition, remodeling or expanding your home, family vacations, weddings, new cars, and retirement. When thinking about how to structure your settlement, consider when you might need more cash available for these events and build in balloon payments along the way.
Your Ability to Work After You Are Injured in Philadelphia
If you were severely injured in an accident and you have been unable to work for some time, you might consider how to make the best use of your settlement cash now. If your prognosis for healing and eventually returning to work is good, then you might need more money now and less once you are able to have some income. If you are on permanent disability and will not be returning to the workforce, you might prefer a structured settlement that provides a stable and consistent income.
Selling Your Settlement in PA
While it is true that you will not be able to change the terms of your settlement once you have signed off, you can choose to sell your settlement. There are companies that buy structured settlements, and you can shop around for a good deal. The court may need to approve the sale of your settlement, but this is a good option if you find yourself strapped for cash at a certain time in your life.
Your Philadelphia Personal Injury Lawyer Can Help
If you have been injured in an accident that was not your fault, you may be asking, How are personal injury settlements paid out? An experienced personal injury attorney can help you file your claim, collect the data necessary to support that claim, negotiate with your insurance company or the liable party’s attorneys, and even go to trial if it becomes necessary.
The amount that you receive in damages depends on a number of things, including the strength of your case and the severity of your injuries. More than those, however, it depends on the skills, experience, and dedication of your attorney. Don't take a chance. Contact Mattiacci Law, LLC, and get the compensation you deserve. We are always available to take your call.