Automobile Collision Settlement Check

What Should I Do with My Automobile Collision Settlement Check?

October 22, 2020, Indianapolis

When your tort claim for damages nears the point of settlement, you may begin to wonder what you should do with the automobile collision settlement check you receive for your injuries and other damages—past, present, and future. If your injuries are serious enough to hinder your lifestyle, now and/or in the future, these questions may come to mind:

    1. Are there any medical, insurance liens, or attorneys’ fees I need to reimburse from my final settlement check?
    2. Do I need to reimburse a pre-settlement or structured settlement loan?
    3. Will I need medical devices, special prescription drugs, or assisting equipment to productively live my life now and in the future?
    4. Will structural changes need to be made to my housing, property, or vehicle, now and in the future to function at capacity?
    5. How can I stretch my settlement to end-of-life?

The attorneys at our Indianapolis automobile collision law firm, Wardlawfirm.com, have successfully settled and/or litigated a substantial number of significant medical personal injury claims for clients that have received serious, life-altering injuries caused by the negligence of another driver in an automobile collision. Especially in claims involving permanent, partial-disabilities, clients should understand the options available to them to maximize and stretch their funds over the course of their lifetimes. At Ward & Ward Law Firm, we are happy to discuss your options, but it is up to our clients to make the decision that best suits their concerns and lifestyle.

 

Will I be taxed on my automobile collision settlement check?

As a general rule, Indiana personal injury settlements are not taxable. However, the attorneys at our Indianapolis automobile collision law firm recommend that you discuss this with your accountant and/or tax preparer as laws and legal opinions may alter traditional practices.

 

What are my options?

After the distribution of your settlement has been made and liens (if any) have been reimbursed, you will need to decide how best to handle your financial assets. If you received an injury that may adversely amplify with age, (including the setting-in of arthritis) you may want to consider how to stretch those funds for the road ahead. But before making any final decisions, check with your accountant and tax preparer to determine if there will be any early withdrawal or tax penalties when you need your funds.

Depending upon your medical needs, you may wish to follow the advice of an investment advisor and put your funds into a position where they will grow over time. Before you discuss this with your advisor, determine how much you may need in the coming years, how much risk you are willing to take on at your age, when you may withdraw funds without penalty, and how much money you would like to withdraw monthly or annually.

Money market accounts and CDs currently pay the investor a very low-interest rate. You may talk with an advisor from your banking institution to learn more about the risks of opening a CD or money market account, rollover dates, and FDIC insured accounts.

 

Hire an automobile collision attorney with experience

If you or a loved one has been seriously injured in an automobile accident, you need the best personal injury representation possible to maximize the compensation you receive from your settlement or lawsuit. The personal injury attorneys at Ward & Ward Law Firm have more than 95 combined years of experience representing clients who have been injured in an automobile, truck, motorcycle, or bicycle collision. We know the law, judicial opinions, and stay current on all legislation that may affect your claim. Call personal injury lawyer, Charlie Ward, today at (317) 639-9501 for a free consultation.