Typically No, Many factors come into play when negotiating a personal injury settlement or seeking compensation in a lawsuit. One of your primary considerations is how much of the money will be there for you in the future when you need it. Numerous things may take a bite out of your personal injury compensation. For example, inflation in health care costs can devalue your settlement.
You do not have to worry as much about the effect of taxes on your personal injury compensation. For the most part, these are not subject to taxation. However, this is not an airtight rule for every aspect of your personal injury compensation. Get specific tax advice before you agree to a settlement so you understand the effect of federal and state income tax laws on your financial situation. Speaking with your personal injury lawyer can also provide insight on all the financial aspects of your settlement.