When a child is injured, families ave to make the difficult decision between choosing a structured settlement or a lump sum. Catchy ads on television tout the advantage of cashing in a structured settlement to “get cash now,” but is that the best course of action? Experienced Virginia (VA) personal injury attorney James Lewis recently explained to a national structured settlement company why structured settlements are a smart decision for injured children.
Even after listening to Jim, you may ask, “Why would anyone want to pass up a large upfront payment?” The main reason is that accepting a structured settlement allows an injured person to receive his or her money tax-free. This ensures a steady income that can be used to pay reoccurring bills for injury-related surgeries and ongoing physical therapy.
A lump sum payment can be spent quickly, however, leaving an injury victim short on money when future bills come due. For example: a well-meaning parent who places the lump sum into a mutual fund could loses much of it during an economic downturn.
Jim goes into great depth and weighs the pros and cons of each choice. listening to the newscast is a must for any family with a child injured by another person's or a company's negligence. Parents should also consult our Virginia personal injury law firm's free report on legal options for receiving compensation for a hurt child.
About the Editors: The Shapiro, Lewis & Appleton personal injury law firm, which has offices in Virginia (VA) and North Carolina (NC), edits the injury law blogs Virginia Beach Injuryboard, Norfolk Injuryboard and Northeast North Carolina Injuryboard as pro bono services.