What is a Structured Settlement? NY Medical Malpractice Attorney Gerry Oginski Explains
Do you know what a structured settlement is? You don’t? Come join me. I want to tell you what a structured settlement is. Hi. I’m Gerry Oginski. I’m a New York medical malpractice and personal injury trial attorney practicing law here in the state of New York. A structured settlement allows you to take a lump sum of money and then have it pay out over a period of time. Now why would you even consider that? One of the reasons why you would consider that in a case involving negligence, in a case involving medical malpractice or possible wrongful death is a number of reasons. Most people are not financially savvy enough to know what to do with a lump sum of money that they get as compensation in their lawsuit.
All of sudden, now they have a huge amount of money and they don’t know what to do. Do they invest it? Do they put it in the bank? Do they spend it? What do they do with it? The reality is – just like with lottery winners – people who experience a huge amount of money, all at one time, over the course of time have a tendency to lose that money in a very short period of time. So one of the options that we as attorneys are obligated to tell you about is something called a “structured settlement.” And that basically means that you can take as much or as little money as you want out to do whatever you wish with.
Then, you can then have that money (the remaining amount) paid out over the course of time. It can be over the course of 10 years, it can be over the course of 20 years, or over the course of your lifetime. And there’s a real benefit to doing that. You will get tax benefits by paying out the money over time. You will get other benefits in that you will not have easy access to all the money at one particular time. So when your friends and your relatives comes to you and says “Hey, can you lend me this money?” Obviously, the answer is no because it’s all tied up in your kid’s trust. Or you can’t do it because it’s tied up and you cannot touch it for the next 10 years. Those are all important factors to consider when deciding what to do when you win either a trial and you get an award or you settle a case and now you’re faced with a lump sum of money.
You know, the whole idea of compensation is to repay a debt that’s owed. Somebody has caused you harm. Somebody has caused you injury. And the only true way that we can repay somebody in today’s society is financially with monetary compensation. So there are a lot of people – defense attorneys especially – who turn around and say, “You know, this is not a lottery.” Well, of course it’s not. We’re asking only for full and fair compensation at the time of trial. That’s what we’re looking for when we seek to compensate you. And for those people who do receive compensation, the question becomes what are you going to do with it? How are you going to do with it? How are you going to rebuild your lives? What are you going to do to make yourself whole again? The money can never put you back together.
But it’s designed to compensate you so that your life is a little bit easier. And that’s the key – understanding what to do with it. When you’re considering what to do with that compensation, you should always be thinking about structured settlements. It may help you greatly and it’s certainly going to help your ability to save that money over the course of your lifetime. So why do I tell you this? I tell you this again to give you an insight and an understanding as to how the lawsuit process works here in the state of New York. And if you have questions, and I’m sure you’re watching this you do have questions and concerns. What I encourage you to do is to pick up the phone and call me. I do this every single day. I answer legal questions just like yours. You can reach me at 516-487-8207 or by email at email@example.com.
I’m Gerry Oginski, here in New York. Thanks for watching..
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Your only exposure to the term “structured settlement” may be late night TV ads hawking immediate access to your money. “It’s your money,” they’ll exhort. “Cash in your structured settlement and use your money now!” If you are (or were) a successful plaintiff in a lawsuit, your ...
Structured Settlements. A structured settlement is a type of annuity that pays out an award from a civil lawsuit by spreading the payments out over a long period of time.
The Structured Settlement Process. The process of issuing a structured settlement is a complicated one that results in a simpler, easier solution for someone who wins a case.