Winning a settlement may not be the end of the personal injury claim. You will have to decide how you would like to receive your settlement. With smaller claims, it may be best to get the money in one lump sum payment. However, as the compensation amount increases, a lawyer may urge you to look at a structured settlement that will benefit you for years to come. How do you decide which payment is best for your case? Allow your personal injury lawyer to walk you through the process.
It is not hard to figure out what a lump settlement is. While you get the entire amount up front, which is beneficial, you will pay income tax on the income that the lump sum guarantees.
The lawyer is important with a structured settlement because there is so much to consider with this option. You will not have to pay taxes for the money awarded to you, but you will only have one chance to negotiate your settlement. A personal injury lawyer experienced with structured settlements can help you to determine how much money you will need up front, then how much to pay out over the next few years or over your lifetime. Once the settlement amount is agreed upon, it is set. You cannot change the structured settlement later on if you suddenly run into more bills.
Your lawyer will only be able to help if you have been completely honest with him or her. He or she will take the information about your case and their knowledge of future medical expenses to guide you to the best structured settlement amount. This is why it is important that you feel comfortable with your legal counsel from the moment you hire him or her. If you are not at ease with the lawyer from the beginning, or feel like he or she does not care about your claim, then you may second guess decisions made about your case. Lawyers can only help you as much as you help them. If you are not candid with them or omit information about your life, they are more likely to steer you down the wrong path accidentally.