Compensation payments for medical negligence claims can often be one of the most significant sums of money that people handle. It isn’t a lottery win or windfall as it will have been calculated to provide specific supportive care, living costs and financial security for years to come.
Getting financial advice to invest the compensation is as important as getting the right legal advice in relation to the medical negligence claim.
Why financial advice is important
When medical negligence compensation is agreed, depending on the case, the damages may be managed by the Court, or paid to the patient and if investment options are going to be considered then professional advice will help you:
- Protect your compensation – if the money just sat in a bank account, then inflation will usually reduce any purchasing power over time and there may not be sufficient finances to protect against all the longer-term needs.
- Plan for your goals – ensure the funds meet your short, medium and long term objectives.
- Preserve and grow your capital – making sure essential care costs are covered, if not already provided for within any settlement order, whilst providing capital for the future.
- Efficiently manage tax liabilities – while damages are usually tax free, investment returns can be subject to different types of taxation and so advice can help structure this.
In a nutshell, financial advice provides peace of mind that your award will do what it is meant to, giving you greater security for yours and your families future.
When to get financial advice
It is best to obtain financial advice before your claim is settled. Getting advice early in the litigation process may allow solicitors and your financial adviser to model future cost scenarios and help determine a level of settlement to reflect your actual needs. Advice can also make a significant difference in some key areas:
- Interim payments – investing wisely to keep pace with inflation, living costs etc.
- Final settlement – lump sums need to be invested as quickly as possible to generate the most efficient return.
- Life changes – if your care, family or other circumstances change.
- Regular reviews – to make sure the investment strategy continues to be suitable for your needs and objectives.
The compensation is intended to give you stability, comfort and independence after the impact of medical negligence. By taking specialist financial advice early and reviewing it regularly, it will give you more confidence that the award will last as long as it is needed for and is tailored to your lifestyle and needs.
Giving you the full picture
Our independent financial advisers work alongside our legal experts to help you protect, invest and grow your settlement with confidence.
If you’d like to talk through your options, get in touch with our financial planning team for a confidential, no obligation chat.
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This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Some information quoted was obtained from external sources we consider to be reliable. All information is correct at the time of writing.
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