Few things can be as hard as having to go through the legal process for a Los Angeles wrongful death attorney. Not only do you have to deal with lawyers, the courts, and financial people, but you have to do all of this while also grieving for your lost loved one.
Nevertheless, settling a wrongful death claim can be one step toward justice for an unfortunate accident. In this article, we’ll answer some key questions about these settlements, including how are wrongful death settlements paid out and what should you expect from the legal process of a settlement.
How Are Wrongful Death Settlements Paid Out? Here’s What You Need to Know
In order to understand the payment of wrongful death settlements, it is necessary to first have a good handle on the two principal types of settlements. There is the lump-sum settlement and the structured settlement.
The main difference between these two settlements is the timing of the payments that the plaintiff receives.
As you might have been able to guess already, a wrongful death settlement is paid out all in one fell swoop. That means that if you are the plaintiff, you’ll get all of the amount paid by the company or the company’s insurance carrier deposited into your account (less any taxes) in just one go.
A structured settlement, on the other hand, pays out the settlement over time. This could take the form of monthly, weekly, or yearly payments. The terms of a structured settlement are infinitely customizable.
Which Settlement Options is Right for You?
One thing to know about the settlement options is that once you decide to go with one, you really can’t change your mind. In very few instances will you be able to renegotiate a settlement without losing a bunch of money.
Thus, it’s important that you select the best option right from the get-go.
If you need a lot of money now to pay down debts, then it may be wise for you to opt for the lump-sum settlement. A structured settlement would take away your ability to use the payout for any significant immediate needs.
On the other hand, if you don’t trust yourself to wisely handle all of the money at once, then a structured settlement is a good option to ensure that you will have a consistent income for a long period of time. However, remember that with inflation the value of the settlement will decay over time.
For most folks, it will make sense for them to receive a lump-sum settlement. The money received can then be invested to produce a steady income.
For legal advice, visit sweetlaw.com.
Get Your Settlement ASAP
There you have it. Now that you know how wrongful death settlements are paid out, you should be far better equipped to decide which settlement type is right for your particular financial needs.
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