What Is a ''Structured Settlemen'' and Should I Take One for My Laredo TX Injury Claim?

Victims of personal injury incidents in Laredo, Texas, are often faced with a number of difficult choices as they begin to pursue their rights in court. One of these is whether to accept a structured settlement. But what, exactly, does a structured settlement mean?

While your lawyer will be the best equipped to give you the advice that applies specifically to your situation, in this blog, we’ll give you a quick overview of structured settlements, including the potential pros and cons of accepting one in your case. Read over the information below and call one of our experienced, dedicated team members today at 1-800-862-1260 to schedule your FREE CASE review at Carabin Shaw. No money owed unless your case is won.

Legal terms can be complicated, but at its core, a structured settlement is simply a legal agreement where all or part of your settlement money is paid out in installments over time.

It’s easy to understand the differences between structured vs lump sum settlement styles: with a lump sum, you receive all your money up front in a single payment, whereas structured settlements are paid out in periodic payments over the course of a predetermined schedule. It’s best to consult with your South Texas attorney before making a decision. Still, some victims prefer a structured settlement because it helps them feel more financially secure over the long term.

Typically, these types of settlements are funded via an annuity purchased by an insurer, which provides victims with guaranteed future payments, allowing you to make plans for medical support, long-term care, living expenses, or other needs.

While your trusted Laredo lawyer will be able to provide you with more specific advice reflecting the circumstances of your case, one of the general advantages of accepting a structured settlement is more favorable tax treatment under U.S. tax law.

Your attorney might advise you that there are considerable financial advantages to accepting a structured settlement, including:

• Tax-free income. Both the principal and interest from your annuity are typically considered exempt from federal and Texas state taxes.
• Stable, guaranteed payments over the years reduce the risk of accidental overspending or market volatility
• You can customize your payment schedule to suit your long-term needs, in consultation with a financial advisor.

If you’re still wondering, “Should I take a structured settlement for a car accident?” these financial factors alone might not be enough to help you make a final decision.

If you need the full amount of cash immediately or want to work separately with your own financial advisor to invest your capital, a lump sum can make sense. Otherwise, here are some instances when a structured settlement may be the best option for you:

• You have long-term medical expenses or disability needs in the wake of your accident
• You’d like to receive a guaranteed, reliable long-term income stream
• You prefer not to take on the responsibility for managing a large lump sum
• You want a tax-advantaged solution that grows in value over time

Consulting with a qualified Laredo injury lawyer once is the best way to determine which payment model makes the most sense for your personal life circumstances.

Not sure whether a structured settlement is right for you? The Laredo TX personal injury attorneys at Carabin Shaw are here to help you decide. Read our law firm’s client reviews to understand how we’ve helped clients just like you make the right decision for their families. Our committed staff of English and Spanish-speaking professionals is here to assist you every step of the way.

Before we begin working together, we offer a free case review to help you understand your legal options. Additionally, we offer our services on a contingency-fee basis so you don’t pay until we win. If you’re contemplating accepting a structured settlement, call Carabin Shaw’s expert Texas attorneys today at 1-800-862-1260. Someone is available to speak with you 24/7.

For more information:

• Cornell Law School
• Congress.gov
• Texas Statutes 141