Winning compensation is a big step. But we know you won’t rest easy until that settlement money is actually in your hands. We get it.
There are two ways personal injury settlements are paid out: lump sum and structured settlements.
Lump sum payouts get you the full amount at once. This allows maximum flexibility but requires budgeting a large influx of cash.
Structured settlements provide incremental payments over time – even lifetime payouts. This ensures steady income but less access to the total upfront.
We’ll look at the options together and determine what makes the most sense for you.
Once a settlement agreement is reached in your personal injury case, there are a few steps before the money lands in your hands:
While it takes some logistics behind the scenes, your attorney has your back in making the process as smooth as possible. With the legal work done, collecting your compensation is the rewarding final step on the road to recovery.
Once we lock down that final settlement number, the next decision is how you’ll be paid. There are pros and cons to different payment structures.
A one-time, lump-sum payment provides the full settlement amount upfront. It’s usually the most popular form of payout. This allows complete control over the money for major purchases, debt payoff, or savings.
But the flip side is you’ll be responsible for managing a large influx of cash wisely. Not to mention, the entire amount is taxable income in that tax year. This could push you into a higher tax bracket.
Structured settlements provide payouts in increments over a number of years through an annuity. You get investment protections and guaranteed income. Unlike lump sum payments, structured payments spread out the tax liability over time since income is received incrementally. But there’s less flexibility, and payouts stop if you pass away.
Our personal injury lawyers will advise on the best route based on your needs and future financial plans.
You deserve every penny you are owed. The insurance companies will try to shortchange you, but we’ll fight to ensure you are fully compensated for your injuries. We know how to navigate the legal system to get you the maximum settlement payout.
Our personal injury attorneys will clearly explain your options and help you decide what’s best for your situation. We will handle every aspect of your case with compassion and dedication so you can focus on your recovery. Contact us at Held, Held & Held now for your free consultation.
Edward Held is the founding member of Held, Held & Held, a family-owned multi-practice law firm in Brooklyn, NY. With more than 40 years of experience, he has zealously represented clients in various legal matters, including personal injury, real estate, criminal defense, bankruptcy, and estate law.
Edward received his Juris Doctor from New York Law School and is a former President of the New York Law School Alumni Association Board of Directors. He has received numerous accolades for his work and has been admitted into the Supreme Court of the United States and the New York State Courts.
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