Structured Settlements for Injury Cases

The law gives the victim of an accident the right to get compensation for damages from the responsible entity. Majority of such cases need not go to trial – instead, they reach a settlement with negotiations. When it comes to settling a personal injury case, your attorney is the right person to negotiate the matter.

An important question in this regard – do you opt for a lump sum or for a structured settlement? Here is a quick look at the details pertaining to the latter option.

How does a structured settlement work? The plaintiff, i.e. the person suing the liable party for damage recovery, may opt for a structured one – where the defendant pays a certain sum of money at regular intervals for a particular period or through life. This regular income comes from an annuity the defendant’s insurer funds.

When is it a good option? This is a wise choice if the injury is of a severe nature, and there is the necessity for continuous treatment and care. In such a situation, a regular source of income would be useful.

How do you negotiate the terms of such a settlement? It is better to let your Chicago personal injury attorney do this on your behalf. Such settlements are complex in nature, and knowledge of the Illinois injury laws is an essential for tackling these. Before you sign on any agreement, clarify each term from your attorney.

Is such a settlement advantageous? A structured settlement offers the plaintiff certain benefits –

* If the plaintiff is not in control of the funds, income from the annuity provides tax relief
* It provides a continuous source of income, and makes it easier to get on with life
* It helps prevent spending every single penny within a few years, and relying on support from the government later
* It may help keep enough for future developments in treatments
* If combined with a lump sum, it gives you relief from the debts you incur because of present costs, and long-term benefits

Are there no downsides to it? Like all legal things, there may be a few problems with such settlements. For example, if you are in control of the funds, the IRS may not decide to give you the tax relief you would otherwise get.

Discuss the terms of the settlement, and the pros and cons of the settlement with your attorney. Seek answers, clarify doubts, and then only take any step in this regard.