You’re more likely to hear about weird or surprising lawsuits than the everyday lawsuits that make up the civil court system. Sure, sometimes people sue Junior Mints for underfilling the boxes. But genuine personal injury and medical malpractice suits are a lot more common.
Settlements before trial also happen often. If both sides can reach an agreement, it saves them the expense and hassle of going through a full trial.
But should you accept that legal settlement? Your lawyer is the best person to answer that question.
Yet there are things you can weigh on your own. Keep reading for information on getting the best outcome for your case.
Should You Accept a Structured Settlement?
If you’re suing for a few thousand dollars, then you’ll likely get a lump-sum payment. That’s what it sounds like: you get the money all at once, and then both sides move on with their lives.
Yet there are many cases with ongoing expenses. A wrongful death case is a good example of that. A family suing for wrongful death could need money for years to come, if not the rest of their lives.
That’s where structured settlements can be a good option. Instead of a single payment, you get many payments spread out over a few years.
But what is a structured settlement? In these cases, the defendant has to go to their insurer and set up a structured settlement annuity.
Structured settlement annuities are a heavily regulated financial product. The defendant and their insurer must follow strict rules when setting them up.
Then there are things like taxes. No one likes to think about them, but you have to discuss tax issues with your lawyer (and perhaps a tax attorney) before signing a settlement offer.
If you’ve got a personal injury settlement on the table, some parts of that settlement may be tax-free. But other parts might not. Your legal team should go over the specifics with you.
If Your Circumstances Change Suddenly
The main advantage of an annuity settlement is the stability. If you were in a car accident and have ongoing medical expenses, the annuity guarantees that the money will be there in the coming years.
For instance, you don’t have to worry about getting all your physical therapy out of the way now if you know you’re getting payments for the next 10 or 20 years.
That’s reassuring for a lot of people. But what if circumstances change and you need more money than you realized when you signed your agreement.
In that case, you can look into a structured settlement cash payout. Basically, you can sell a percentage of your legal settlement in exchange for money now.
If that sounds complicated, it can be. That’s why it’s important to work with a reputable agency.
It’s also not something you should take lightly. Consult with a financial adviser before moving ahead on selling part of your annuity settlement.
Understanding Your Legal Settlement
No one wants to become a plaintiff in a personal injury or medical malpractice suit. If you do, it’s because something terrible happened.
A legal settlement can provide some measure of justice. But never sign anything if you don’t understand it.
Was this article useful? If so, bookmark our site. We’ll keep you informed on all the latest news about the law and the courts.
