Birth Injury / Birth Defect
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Birth Injury > Structured Settlement

Structured Settlement Lump Sum

There are several options that one should consider upon being awarded damages from a birth defect or injury lawsuit. Should you take the compensation all at one time in one lump sum or would you prefer to be compensated in periodic monetary installments? Both a structured settlement and a lump sum form of compensation have their drawbacks and benefits. An attorney can help you determine which method of receiving damages is most appropriate for your current and future situations.

For more information about how to get a structured settlement lump sum, contact our licensed structured settlement broker at Kleinick Law today.

A structured settlement contains the following benefits:

  • It is Tax Free - Structured settlements are not subject to Federal or State taxes as long as it is under the IRS guidelines for Alternative Minimum Tax
  • It is Secure - Since assets acquired in periodic installments are smaller in quantity than a large lump sum, they will be less attractive to thieves and conmen. Additionally, if your money is stolen, there will be additional income coming from your settlement in the future to help diminish the loss.
  • It is Hassle Free - With a structured settlement, you do not have to worry about making wise investments or consider a budget or the ramifications of overspending
  • It is Cheaper - Often times, structured settlements can be arrived at without going to court and the costs that are involved with those proceedings

A lump sum settlement contains the following benefits:

  • More Money - There is more money awarded initially which will allow you to pay off medical expenses and debts faster while retaining a sizable profit
  • Flexibility - With more money up front, you can make several investments that may lead to greater profits down the road

As with most things, each type of settlement also features its own set of drawbacks. Structured settlements, for example, do not allow you the same flexibility with assets and earnings as a lump sum settlement does. With a set limitation of money every year, it may not be feasible to enjoy some of the luxuries and perks associated with large quantities of money.

Some people prefer to get their money from a lawsuit all at once. It seems like the most attractive option to most. However, there have been several stories about people who have taken this option, whether in a lawsuit or from the lottery, and have squandered their fortune due to poor financial management. Take the case of lottery winner Shefik Tallmadge for example. Tallmadge won a $6.7 million lottery jackpot in Arizona in 1988. In less than 20 years, Shefik had lost his entire fortune and declared bankruptcy.

Even worse, the sudden attainment of large sums of money can sometimes have disastrous consequences. In the case of $31 million dollar Texas lottery winner Billie Bob Harrell, Jr., his large lottery winnings served as a curse. Two years after winning the lottery, Harrell committed suicide due to the burden that came with his large winnings. One television legal analyst stated, “One of the reasons? Everyone - family, friends, and strangers - had been hitting him up for money.”

The benefits and risks associated with each form of settlement should not be considered in haste. The decision you make can have a tremendous effect on your financial future and should be arrived at with patience and due diligence. The proper legal counsel can help you come to the decision that is best for your particular situation.

For more information about how to get a structured settlement lump sum, contact our licensed structured settlement broker at Kleinick Law today.

 

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Medical malpractice lawyers in New York specializing in medical malpractice cases involving birth injuries and birth defects.Practicing throughout New York City (NYC), Brooklyn, Bronx, Queens, Staten Island, Manhattan and the surrounding areas.

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