Dealing with a personal injury is tough: physically, emotionally, and financially. If you’ve reached a settlement, you’re probably wondering how personal injury settlements are paid out. The process can feel overwhelming, but at Travis, Moore & Brann PLLP, we’re here to make it simple and stress-free for you.
Step-by-Step Breakdown of Receiving Your Settlement
Getting your settlement isn’t a one-step process. There are a few moving parts, but every single one is designed to get you exactly what you deserve. Let us break it down for you.
Settlement Agreement Finalized
Before you see a dime, you and the insurance company must agree on the terms. Then, they’ll cut a check for the final amount.
This isn’t always a quick process because insurance companies like to drag their feet, nitpick your injuries, and try to save themselves money. That’s where we come in. With us in your corner, they don’t get to waste your time or your money.
Funds Are Sent to Your Attorney’s Trust Account to Be Distributed
When your settlement check is issued, it doesn’t immediately come to you. Instead, it’s sent to your attorney’s trust account first to cover medical bills, court costs, and legal fees. This step helps ease the burden of handling those expenses on your own, so when the rest reaches you, it’s truly yours to keep.
It also protects your financial interests because your attorney won’t let anyone take more than they should to confirm you walk away with what’s yours.
Receiving Your Settlement
Once all fees and obligations are paid, you’ll receive your portion of the settlement. Depending on your case, the payout can take two forms:
- Lump Sum Settlement: This means you get the entire payout in one payment. It’s a great option if you want quick access to your money to cover big expenses or invest it in other ways.
- Structured Settlement: With this option, you receive smaller payments over time. Structured settlements are often ideal for individuals looking for long-term financial stability, especially in cases involving significant emotional distress or ongoing medical needs.
Our team will help you determine which option is best for you. It’s not just about getting your money. It’s about making sure it helps you now and in the long run.
Factors Influencing Your Final Settlement Amount
Several factors go into deciding your settlement amount, such as:
- Medical Bills Now and Later: This includes the cost of treatments you’ve already had and the estimated costs of any future care you’ll need because of your injury.
- Lost Pay: If you can’t work due to your injury, the payout can cover your lost income and any future earnings you might miss.
- Pain and Suffering: This compensates you for the physical pain and emotional toll your injury has caused and might continue to cause.
- Punitive Damages: In some cases, additional damages are awarded to hold the at-fault party accountable and discourage similar behavior in the future.
Every personal injury case is unique, and the final amount will vary based on your circumstances. That’s why having an experienced personal injury lawyer is essential to help you receive the compensation you’re entitled to.
Are Personal Injury Settlements Tax-Free?
A common question we get is whether personal injury settlements are taxable. According to the IRS, most settlements for physical injuries and related emotional distress are tax-free; however, portions of the settlement, such as punitive damages or interest, may be taxable. Our attorneys can explain how the rules apply to your case and, if necessary, work with tax professionals.
The Importance of Legal Representation
The payout process might seem simple, but it’s usually not. Insurance companies know how to cut corners and offer less than what you’re owed. Without the right legal help, you could end up with a lot less than you deserve.
At Travis, Moore & Brann PLLP, our team has years of experience handling personal injury settlements in Kalispell, MT. We know how insurance companies operate and are relentlessly protecting your rights. From dealing with their adjusters to calculating payouts, we take care of everything, so you don’t have to.
Why Choose Travis, Moore & Brann PLLP?
Taking on a personal injury case alone can feel overwhelming, especially when you’re trying to focus on recovering. At Travis, Moore & Brann PLLP, our Kalispell personal injury lawyers are here to usher you through every step of the process and provide the help you need. Our team is dedicated to helping you move forward when you work with us.
If you have questions or need help, call us at (406) 752-7550 or contact us online. Let us handle the legal process so you can focus on what matters most.
