Dealing with a personal injury claim will take a lot of time and planning. The case may be simple with the help of your personal injury law service, but it may be difficult to figure out the next moves. Receiving a check for the entirety of your personal injury money may not be in your best interest. Here are three reasons why you and your attorney should ask for a structured settlement instead of one check.
You can ask your lawyer to be a go-between
When it comes to dealing with all of the income you will receive for a number of the years, it can make your head spin to think about how to plan it out. If you get a structured settlement through the company, you will be able to have something similar to a regular income that you can handle in chunks. Along with this, your attorney can act as a go-between and receive the structured settlement checks for your claim. They can place this in trust for you or give you an even smaller amount of the check on a monthly basis. This will help your settlement last.
The company may be more willing to approve your claim
Writing a large check at once can seem daunting, even for an insurance company. The ability to split the checks up into manageable amounts can be easier for any company to agree to. This can also be a good idea for the company for tax reasons. Speak with your attorney about proposing a structured settlement when going after a personal injury claim. Being able to settle out of court can be easier with this type of payment plan.
You can sock away taxes little by little
Worrying about taxes from a settlement is something that you may need to do upfront. If you will be off work in a little while, you will need to make the money last. If the money is taxed, this means that you will also have to include your April tax bill in your household budget. Monthly, you can take out a little bit out of each structured check and put it towards your taxes. You can also have your accountant figure out the tax responsibility early on in the year and pay quarterly rather than pay a bulk sum at once. This will keep you on a regular income schedule that is uninterrupted by large bills.
Contact a firm, like Lerner, Piermont & Riverol, P.A. , for more help.