A lump sum settlement is a type of payment that is set up at the beginning of your life or an existing contract. It means a single, fixed sum of money will be delivered to you through an annuity or pension. It’s also given out at the end of a contract or as damages in case of a breach. The Ronstadt law firm has a history of providing legal assistance in cases where employers are misclassifying employees as independent contractors.
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What is a Lump Sum Settlement?
Are you considering a lump sum settlement? If so, you're not alone. A lump sum settlement is one of the most common types of settlement in litigation. And for good reason: Lump sum settlements offer attractive payouts with minimal downside risk. Here's what you need to know about them…
Why would I want to get a lump sum settlement?
1) Lump sums are often more lucrative than other types of settlements.
2) There's minimal downside risk associated with lump sums since they're tax-free if you qualify for them under your particular tax bracket.
3) Lump sums can be easier to budget for – since there is no ongoing cost involved, they're perfect if you want to quickly close on a new property or take care of some other financial priority right away.
4) Lump sums often come with less paperwork and hassle than other types of settlements.
How to Prepare for a Lump Sum Settlement
1. Make a list of all your assets and liabilities.
2. Discuss your settlement with your attorney.
3. Get documentation of any injuries or damages incurred as a result of the accident.