Medical Attorney in Cleveland Reviews Structured vs. Lump Sum for Injury Settlement
Money for injury settlements generally comes in two forms, a structured settlement or a lump sum. This will be one of many issues that you will need to discuss when pursuing a malpractice lawsuit with a medical attorney in Cleveland.
Legal counsel may help you better understand some of the potential legal and tax consequences of both. In addition, there are other factors that need to be considered so you can make an informed decision as to which is best for your situation.
Lump Sum Settlements
Although settlements vary from one case to another and state laws can impact the amount, plaintiffs can usually choose how they will receive the monies. One way is through a lump sum. Although this amount can be less than what you might receive through a structured settlement, it still can provide the plaintiff with a significant amount depending on the compensation involved.
A disadvantage to a lump sum is that you will need to be especially cautious about your funds. If you spend too much at one time, you may not have enough later. This can be a real problem if you need to spread out your money for recurring bills. For injury settlements involving disability or long-term care, it will be up to you to make sure you have enough to cover you later on.
These are just some of the considerations that need to be made in a lump sum payment. Bring any specific questions pertaining to your case to your medical attorney in Cleveland.
Many prefer structured settlements to lump sum payments because they may provide a greater amount of paid monies in the long run. The money for the injury settlement is received in a series of smaller payments, which can be spread out in a number of ways.
For instance, you may have a large sum of medical bills that have accrued and need to be paid right away. Your settlement can be arranged so that a large amount is received to cover those bills, and the remainder of the money for the injury settlement is spread out over a specified number of years. There are a variety of ways you can structure these settlements.
Since payments are already spread out for you, it can reduce the risk of spending too much at one time. While you must still spend the money wisely, a structured payment plan can take some of the hassle out of managing the large sum all at once. There may also be tax advantages to a structured settlement. The money for the injury settlement may come in an annuity so that it is tax-free.
Your medical attorney in Cleveland familiar with malpractice cases may be helpful in answering your questions pertaining to lump sum and structured settlements. It’s important to weigh the advantages and disadvantages and decide what will work best for you.
Seeking Help from a Medical Attorney in Cleveland
Every year, states pay out millions of dollars to victims of medical malpractice. According to Becker’s Hospital Review, there was a 2.4 percent decrease in payouts for injury settlements in 2011 compared to 2010, and payouts have decreased since a high in 2003.
Still, if you believe that medical negligence resulted in serious harm, you could be entitled to money for your injury. Settlements can’t turn back the clock, but they may help you move forward.