I am in the midst of a Kentucky personal injury claim and wondered what a structured settlement generally means?

A: A structured settlement generally means that you receive the settlement you've been awarded in payments, as opposed to one lump sum. If you're considering a structured settlement agreement for your Kentucky personal injury claim, you should speak to a Louisville accident attorney to learn all about the tax implications involved.

When you're in the midst of your Kentucky personal injury claim and the idea of a structured settlement is posed, you'll have to be aware of how this will affect your future tax payments.

When you receive a lump sum settlement, you may be taxed on it if your damages weren't strictly "physical." Additionally, if you invest that money, you'll have to pay taxes on your investment earnings.

Conversely, when a structured settlement is set up properly, you may be able to avoid paying taxes. This can become a significant factor, especially in cases when you're dealing with a large settlement amount.

In addition to tax benefits, structured settlements may be a good idea for: 

• minors to help pay for future medical expenses;
• people with special long-term needs; and
• people who aren't adept at handling money. 

Structured settlements are very flexible and may be suitable in some, but not all, situations. There are asset protection and spendthrift advantages, but some people may fare better investing a large lump sum.

Since there are numerous benefits as well as potential disadvantages to structured settlements, you shouldn't agree to any offer without first discussing your Kentucky personal injury claim with a Louisville accident attorney.

Contacting a Louisville Accident Attorney

Take your case to a Louisville accident attorney before deciding on a structured settlement for your Kentucky personal injury claim. An attorney at Gray and White can help you handle every aspect of your Louisville accident claim. If you've been injured in Kentucky, contact us today for a free evaluation of your case - 1-800-634-8767 or 502-210- 8942.