Using Income Tax Free Structured Settlements to Maximize Compensation Recoveries
Oct. 5, 2018
After we have won your case and recovered monetary damages, you, the plaintiff, will need to collect your compensation from the defendant's insurance company.
The most common types of cases are:
A personal injury case is a civil case where someone who's been harmed files a lawsuit seeking money from the person believed responsible for the harm. Money in the form of a structured settlement helps recipient pay for pain and suffering, lost function of the body, lost wages, medical expenses or other costs.
Most people know about workers' compensation, which pays workers who get injured on the job while they recover. Payments can be used for wage replacement during periods when injured employees are unable to work and other expenses.
In some unfortunate cases, doctors can do more harm than good. In this instance, injured patients or the families of deceased patients can sue for medical malpractice.
A structured settlement is also a common way to compensate family members who claim loved ones were victims of wrongful deaths. Families may be entitled to receive a stream of tax-free payments, to replace income after a loved one's death.
In most cases, a lump sum settlement of the debt will be proposed by the insurance company. A lump sum means you will be given all of the amount you are owed by the insurance company in one transaction, and both parties can go their separate ways. While it is understandably tempting to see a multi-figure check with your name on it and take it, considering the advantages of an Income Tax Free Structured Settlement is a must.
What Is a Structured Settlement Amount?
Rather than collecting a lump sum settlement, we can negotiate an Income Tax Free Structured Settlement for your consideration. In an Income Tax Free Structured Settlement, you will be paid the owed damages PLUS INTEREST over time.
Why would you want to wait to get your deserved money, though? The answers lie in the tax break and compound interest benefits of a Income Tax Free Structured Settlements .
By using a structured settlement, you can enjoy the following benefits:
Interest and positive adjustments: Income Tax Free Structured Settlement plans are guaranteed to gain interest as the years go by, set during your negotiations. They can also be inflated due to cost of living adjustments (COLA). The end result is you get more money than agreed upon in the settlement, just for waiting a bit. MOST IMPORTANTLY, the COMPOUND interest on structured settlements is also nontaxable. Compare that to a lump sum that you receive and invest, where all the interest and gain is taxable at the federal, state and local level.
Ease for everyone: You can set up your structured settlement plan to deposit directly into a bank account of your choice, making collections simple.
Discuss Your Options with Cornell Law
At Cornell Law, we fully understand the benefits of structured settlements over lump sums in certain situations. In particular, our legal team usually advises the use of structured settlements for cases involving an injured child. We want to maximize, PROTECT and grow the recovery amount with a guaranteed interest rate and TAX FREE INTEREST compounded with the principal.
Would you like to know more about our Southeast Iowa personal injury law firm? Call us to speak with a member of our team today. We can even schedule you a free consultation if you prefer.