While most people focus on securing a fair settlement, there are decisions you must make before receiving payments in a Clermont catastrophic injury case. The way the law structures these payments could have a tremendous impact on your future finances.
When it comes to securing a payout following a severe injury, you generally have two options. The opposing party might offer a single lump-sum settlement, or you could receive a structured settlement that pays a smaller amount over many years. Our dedicated catastrophic injury attorneys at the Largey Law Firm could advise you of your options.
Lump Sum Payments
A lump sum payment provides a one-time payout that settles your claim in full. In catastrophic injury claims in Clermont, this option provides immediate access to funds, which you can use for expenses stemming from your injuries, such as medical bills or home renovations.
One of the main advantages of a lump sum is financial flexibility. Having the full amount lets you make large purchases or invest on your terms. However, this approach also carries risks. Without careful financial planning, you may exhaust the funds too quickly or mismanage them over time. Additionally, receiving a lump sum could impact eligibility for needs-based public benefits, such as Medicaid. It is essential to work with financial and legal advisors to determine whether a lump-sum settlement is appropriate, especially when identifying potential tax liabilities.
Structured Settlement
Structured settlements provide compensation through a series of scheduled payments over time, rather than a single lump-sum payout. In a Clermont catastrophic injury case, we could tailor this structure to ensure you receive funds that cover your ongoing costs and expenses.
One of the biggest advantages of a structured settlement is financial security. It ensures you and your loved ones continue to receive income for years, preventing your funds from running out when you still need them. These settlements may also offer tax advantages and protect your eligibility for certain public benefits. A structured settlement could leave you with substantially more money over time.
However, this option comes with less flexibility. Once agreed upon, the payment schedule is typically fixed, making it difficult to access large sums for unexpected expenses or emergencies. It is important to weigh your options and speak to legal counsel before choosing this approach.
What Should You Know About Your Settlement Payments?
Certain factors affect how disbursements are obtained in Clermont catastrophic injury claims, regardless of how they are structured. In fact, being aware of these issues could help you avoid accepting a settlement that will not meet your long-term needs.
First, you should remember that a portion of your settlement payments may be deducted before you ever receive them. Make a plan that considers factors such as attorney fees or medical bills before you budget that money for other things.
You should also carefully consider tax implications and processing time. Some approaches lead to a higher tax burden or payment delays.
Contact Our Lawyers in Clermont About Securing a Catastrophic Injury Claim Payout
It is vital that you make the right decisions before receiving payments in a Clermont catastrophic injury case. These settlements may cover your needs and preserve your quality of life after a devastating injury, but you must protect these resources moving forward. Whether you accept a lump sum or negotiate a structured settlement, our attorneys could help you weigh the risks and consider your options. Contact us at the Largey Law Firm today to discuss your case.
