What Should You Do With a Commercial Vehicle Settlement?
What should you do with a commercial vehicle settlement? What steps should you take to protect this valuable asset so that it will last as long as your bills? Receiving a settlement after a large truck accident can feel like winning the lottery. The feeling of validation and the knowledge that you will receive funds to compensate for medical bills, lost income, pain and suffering, etc., is liberating. However, it comes with its own challenges that your attorney can help you prepare for. In fact, receiving a settlement isn't the end of your personal injury journey because there is still work you need to complete to protect it.
Take Care of Taxes
If you have not taken itemized deductions for medical expenses or sickness related to your injury, your settlement is non-taxable. However, if you did claim deductions, you will need to work with your accountant to calculate the pro-rate amount you owe. Pain and suffering from physical injuries are non-taxable, but pain and suffering from emotional damages are taxable. Likewise, punitive damages are also taxable. Further, if there are tax liens, the IRS can take their share and resolve back taxes you owe.
Pay Medical and Legal Bills
You will want to pay off your medical and legal bills right away. This will ensure that any outstanding debts you have don't accrue interest and chip away at your finances.
Forecast Your Medical Needs
Determine whether you need adaptive living aids, reconstructive surgery, long-term care, etc. You will want to set funds aside from your commercial vehicle settlement to cover these expenses. Remember, healthcare expenses will continue to increase the longer you need treatment and care. Be sure to take this into account when forecasting the cost of your future medical expenses.
Pay Off Your Bills
Credit cards, mortgage payments, personal loans, and other debts can weigh heavily on your finances. Pay these down and pay them off as possible. The less debt you carry, the better your long-term financial outlook. This is especially important if your injuries have resulted in a long-term loss or reduction of income.
Invest in Yourself
If your injuries have left you unable to continue working in your previous profession, it is a good time to learn new skills and discover new ways to make a living. Use your commercial vehicle settlement to enroll in educational courses, invest in your business, etc. Your windfall is the perfect ticket to a new career and a solid financial future for your family.
Upgrade Your Health and Life Insurance
If you suffered serious injuries in your accident, upgrade your health and life insurance policies. This will buy you some protection against deteriorating health and protect your family's financial future if the worst should happen.
Guard Your Commercial Vehicle Settlement
Whether your commercial vehicle settlement is $10,000 or $1 million, you will start receiving calls asking for money. Friends, family, classmates, neighbors, charities, and more will all want a piece of your good fortune. While you may want to help, work closely with your financial advisor to determine how much you can help, and whom you should help. Don't be afraid to say, "Sorry, I can't help."
Contact Brad Pistotnik Law at 1-800-241-BRAD or call us on our local line at 316-684-4400. Brad Pistotnik is a commercial motor vehicle accident attorney in Kansas. We represent clients pursuing commercial vehicle settlements following accidents in Kansas, Nebraska, Missouri, and Texas. You can call Brad Pistotnik on his cell at 316-706-5020. You can reach Tony Atterbury on his cell at 316-617-9237.