Dealing with a compensation payout – your options

Receiving compensation after an accident at work can be a huge relief, finally bringing closure and providing the financial support necessary for recovery.  But while there’s lots of help available when you set out to win it, you might find yourself short of good advice on how to spend it.  Most people actually spend all their compensation money within just a few weeks, with vacations and automobiles among the most popular acquisitions.  This can leave them in financial difficulties later on, especially if the accident is still taking its toll and further medical expenses have to be met.  It may also mean that they end up paying more tax than necessary, as well as missing out on opportunities to earn interest on the money.

For those who want to make sure they get the most out of their compensation, it helps to understand a few simple principles.

What is compensation for?

Most compensation packages actually contain several elements.  First are general damages, money given to make the victim feel better and compensate for the stress of the experience.  Then there may be money to make up for lost earnings, and potentially, money to live on if working is not going to be an option in future due to the injuries sustained.  There can also be money to cover things like travel expenses associated with the claims process, medical expenses (including the cost of treatment likely to be needed in the future), and adaptations to the victim’s home or car in order to accommodate a lasting disability caused by the accident.

When the money is spent, it’s important to consider these matters.  Nobody will check up and demand to see proof of how it’s being used, but neglecting to take account of accrued debts or ongoing expenses could easily lead to problems.

Compensation payouts average around $3,500 but can vary considerably. For instance, attorneys Brown & Theis recently won $185,000 for a construction worker who suffered a severe shoulder injury due to a fall.

Tax and welfare

When winning compensation, people are sometimes told that they can choose whether to receive it in a lump sum or in installments.  Some people will need it all straight away, for instance because they need to pay for major home adaptations.  In many cases, however, it’s better to opt for installments as this minimizes the amount of tax that needs to be paid on the money.

Receiving compensation in installments is also a better idea for people in receipt of welfare payments, including those who have just had to apply for them because of a disability caused by their accidents.  Having access to a large amount of money may mean that welfare payments are stopped or reduced, potentially leading to all the compensation being lost.  This is a lot less likely to happen with installments.

Where the body paying compensation does not offer installments, one option is to engage with a solicitor who can set up a trust fund to achieve the same effect.  Money held in trust doesn’t need to be inactive.  It’s a good idea to seek independent financial advice (many banks offer this for free) so that it can be wisely invested and earn interest or dividends to increase the overall amount.

2,067 Responses to Dealing with a compensation payout – your options
  1. Sherrell Scelfo
    October 16, 2018 | 2:52 pm

    An interestingA fascinatingAn intriguingA motivating discussion is worthis definitely worth comment. I thinkI believeI do believeI do thinkThere’s no doubt that that you shouldthat you ought tothat you need to writepublish more onmore about this topicsubjectissuesubject matter, it might notit may not be a taboo subjectmatter but generallyusuallytypically people do notpeople don’tfolks don’t speak aboutdiscusstalk about suchthese topicssubjectsissues. To the next! CheersMany thanksAll the bestKind regardsBest wishes!!

  2. Moving company in Dupont circle DC
    October 16, 2018 | 5:44 pm

    Here are a number of the web pages we suggest for our visitors

  3. Kurt Moriarity
    October 16, 2018 | 8:05 pm

    whoah this blogweblog is greatwonderfulfantasticmagnificentexcellent i lovei really likei like readingstudying your articlesposts. StayKeep up the goodgreat work! You knowYou understandYou realizeYou recognizeYou already know, manya lot oflots of people areindividuals arepersons are huntingsearchinglooking aroundround for this infoinformation, you canyou could helpaid them greatly.

  4. Aveniraorina
    October 16, 2018 | 11:57 pm

    purchase cheap online

    6a28 online 300mg

  5. Debera Mcthay
    October 17, 2018 | 12:56 am

    HelloHi there, simplyjust turned intobecamewasbecomechanged into aware ofalert to your blogweblog thruthroughvia Google, and foundand located that it isit’s reallytruly informative. I’mI am gonnagoing to watch outbe careful for brussels. I willI’ll appreciatebe grateful if youshould youwhen youin the event youin case youfor those whoif you happen to continueproceed this in future. A lot ofLots ofManyNumerous other folksfolksother peoplepeople will beshall bemight bewill probably becan bewill likely be benefited from yourout of your writing. Cheers!

  6. Singapore Property for Sale
    October 17, 2018 | 2:38 am

    we came across a cool site which you may well delight in. Take a look when you want

  7. Sarkari Exam
    October 17, 2018 | 8:06 am

    The information talked about inside the report are a number of the most beneficial offered

  8. Aveniraorina
    October 17, 2018 | 8:50 am

    online online in eastern cape

    6a28 why does a man take online

  9. Aveniraorina
    October 17, 2018 | 5:17 pm

    dove comprare online a bergamo

    6a28 click here mexican online

  10. Giovanna Chalfin
    October 17, 2018 | 7:49 pm

    You shouldYou ought toYou need to take part inbe a part of a contest for one of the bestof the greatestof the finestof the highest qualityof the most useful blogssiteswebsites on the webon the interneton the netonline. I willI am going toI most certainly willI’m going to recommendhighly recommend this sitethis websitethis blogthis web site!

  11. strizhka v nojabre 2016
    October 18, 2018 | 6:20 pm

    Every once in a when we choose blogs that we read. Listed beneath are the most current web-sites that we opt for

  12. Corey Castoe
    October 18, 2018 | 9:54 pm

    It’s hard to finddifficult to findnearly impossible to findhard to come by knowledgeableeducatedwell-informedexperienced people on thisabout thisfor thisin this particular topicsubject, but youhowever, you sound likeseem like you know what you’re talking about! Thanks

  13. Pearly Adair
    October 18, 2018 | 10:29 pm

    Very goodAmazingAwesomeSuperbWonderfulFantasticExcellentGreat blog! Do you have any recommendationshintstips and hintshelpful hintssuggestionstips for aspiring writers? I’m planninghoping to start my own websitesiteblog soon but I’m a little lost on everything. Would you proposeadvisesuggestrecommend starting with a free platform like WordPress or go for a paid option? There are so many choicesoptions out there that I’m totallycompletely confusedoverwhelmed .. Any recommendationssuggestionsideastips? Thanks a lotBless youKudosAppreciate itCheersThank youMany thanksThanks!

  14. shoping center
    October 19, 2018 | 2:40 am

    Great tremendous issues here. I am very glad to peer your article. Thank you a lot and i’m taking a look forward to contact you. Will you please drop me a e-mail?

  15. Google
    October 19, 2018 | 6:43 am

    Usually posts some very interesting stuff like this. If you are new to this site.

  16. Junk Furniture removal DC
    October 20, 2018 | 6:53 am

    please pay a visit to the websites we comply with, including this one particular, as it represents our picks from the web

  17. sex toy collection
    October 20, 2018 | 10:57 pm

    although internet websites we backlink to below are considerably not associated to ours, we feel they are essentially worth a go by means of, so possess a look

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/dealing-with-a-compensation-payout-your-options/trackback/

Dealing with a compensation payout – your options

Receiving compensation after an accident at work can be a huge relief, finally bringing closure and providing the financial support necessary for recovery.  But while there’s lots of help available when you set out to win it, you might find yourself short of good advice on how to spend it.  Most people actually spend all their compensation money within just a few weeks, with vacations and automobiles among the most popular acquisitions.  This can leave them in financial difficulties later on, especially if the accident is still taking its toll and further medical expenses have to be met.  It may also mean that they end up paying more tax than necessary, as well as missing out on opportunities to earn interest on the money.

For those who want to make sure they get the most out of their compensation, it helps to understand a few simple principles.

What is compensation for?

Most compensation packages actually contain several elements.  First are general damages, money given to make the victim feel better and compensate for the stress of the experience.  Then there may be money to make up for lost earnings, and potentially, money to live on if working is not going to be an option in future due to the injuries sustained.  There can also be money to cover things like travel expenses associated with the claims process, medical expenses (including the cost of treatment likely to be needed in the future), and adaptations to the victim’s home or car in order to accommodate a lasting disability caused by the accident.

When the money is spent, it’s important to consider these matters.  Nobody will check up and demand to see proof of how it’s being used, but neglecting to take account of accrued debts or ongoing expenses could easily lead to problems.

Compensation payouts average around $3,500 but can vary considerably. For instance, attorneys Brown & Theis recently won $185,000 for a construction worker who suffered a severe shoulder injury due to a fall.

Tax and welfare

When winning compensation, people are sometimes told that they can choose whether to receive it in a lump sum or in installments.  Some people will need it all straight away, for instance because they need to pay for major home adaptations.  In many cases, however, it’s better to opt for installments as this minimizes the amount of tax that needs to be paid on the money.

Receiving compensation in installments is also a better idea for people in receipt of welfare payments, including those who have just had to apply for them because of a disability caused by their accidents.  Having access to a large amount of money may mean that welfare payments are stopped or reduced, potentially leading to all the compensation being lost.  This is a lot less likely to happen with installments.

Where the body paying compensation does not offer installments, one option is to engage with a solicitor who can set up a trust fund to achieve the same effect.  Money held in trust doesn’t need to be inactive.  It’s a good idea to seek independent financial advice (many banks offer this for free) so that it can be wisely invested and earn interest or dividends to increase the overall amount.

2,067 Responses to Dealing with a compensation payout – your options
  1. Sherrell Scelfo
    October 16, 2018 | 2:52 pm

    An interestingA fascinatingAn intriguingA motivating discussion is worthis definitely worth comment. I thinkI believeI do believeI do thinkThere’s no doubt that that you shouldthat you ought tothat you need to writepublish more onmore about this topicsubjectissuesubject matter, it might notit may not be a taboo subjectmatter but generallyusuallytypically people do notpeople don’tfolks don’t speak aboutdiscusstalk about suchthese topicssubjectsissues. To the next! CheersMany thanksAll the bestKind regardsBest wishes!!

  2. Moving company in Dupont circle DC
    October 16, 2018 | 5:44 pm

    Here are a number of the web pages we suggest for our visitors

  3. Kurt Moriarity
    October 16, 2018 | 8:05 pm

    whoah this blogweblog is greatwonderfulfantasticmagnificentexcellent i lovei really likei like readingstudying your articlesposts. StayKeep up the goodgreat work! You knowYou understandYou realizeYou recognizeYou already know, manya lot oflots of people areindividuals arepersons are huntingsearchinglooking aroundround for this infoinformation, you canyou could helpaid them greatly.

  4. Aveniraorina
    October 16, 2018 | 11:57 pm

    purchase cheap online

    6a28 online 300mg

  5. Debera Mcthay
    October 17, 2018 | 12:56 am

    HelloHi there, simplyjust turned intobecamewasbecomechanged into aware ofalert to your blogweblog thruthroughvia Google, and foundand located that it isit’s reallytruly informative. I’mI am gonnagoing to watch outbe careful for brussels. I willI’ll appreciatebe grateful if youshould youwhen youin the event youin case youfor those whoif you happen to continueproceed this in future. A lot ofLots ofManyNumerous other folksfolksother peoplepeople will beshall bemight bewill probably becan bewill likely be benefited from yourout of your writing. Cheers!

  6. Singapore Property for Sale
    October 17, 2018 | 2:38 am

    we came across a cool site which you may well delight in. Take a look when you want

  7. Sarkari Exam
    October 17, 2018 | 8:06 am

    The information talked about inside the report are a number of the most beneficial offered

  8. Aveniraorina
    October 17, 2018 | 8:50 am

    online online in eastern cape

    6a28 why does a man take online

  9. Aveniraorina
    October 17, 2018 | 5:17 pm

    dove comprare online a bergamo

    6a28 click here mexican online

  10. Giovanna Chalfin
    October 17, 2018 | 7:49 pm

    You shouldYou ought toYou need to take part inbe a part of a contest for one of the bestof the greatestof the finestof the highest qualityof the most useful blogssiteswebsites on the webon the interneton the netonline. I willI am going toI most certainly willI’m going to recommendhighly recommend this sitethis websitethis blogthis web site!

  11. strizhka v nojabre 2016
    October 18, 2018 | 6:20 pm

    Every once in a when we choose blogs that we read. Listed beneath are the most current web-sites that we opt for

  12. Corey Castoe
    October 18, 2018 | 9:54 pm

    It’s hard to finddifficult to findnearly impossible to findhard to come by knowledgeableeducatedwell-informedexperienced people on thisabout thisfor thisin this particular topicsubject, but youhowever, you sound likeseem like you know what you’re talking about! Thanks

  13. Pearly Adair
    October 18, 2018 | 10:29 pm

    Very goodAmazingAwesomeSuperbWonderfulFantasticExcellentGreat blog! Do you have any recommendationshintstips and hintshelpful hintssuggestionstips for aspiring writers? I’m planninghoping to start my own websitesiteblog soon but I’m a little lost on everything. Would you proposeadvisesuggestrecommend starting with a free platform like WordPress or go for a paid option? There are so many choicesoptions out there that I’m totallycompletely confusedoverwhelmed .. Any recommendationssuggestionsideastips? Thanks a lotBless youKudosAppreciate itCheersThank youMany thanksThanks!

  14. shoping center
    October 19, 2018 | 2:40 am

    Great tremendous issues here. I am very glad to peer your article. Thank you a lot and i’m taking a look forward to contact you. Will you please drop me a e-mail?

  15. Google
    October 19, 2018 | 6:43 am

    Usually posts some very interesting stuff like this. If you are new to this site.

  16. Junk Furniture removal DC
    October 20, 2018 | 6:53 am

    please pay a visit to the websites we comply with, including this one particular, as it represents our picks from the web

  17. sex toy collection
    October 20, 2018 | 10:57 pm

    although internet websites we backlink to below are considerably not associated to ours, we feel they are essentially worth a go by means of, so possess a look

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/dealing-with-a-compensation-payout-your-options/trackback/