One of the most expensive mistakes can happen after settlement.
Personal Injury Lawyers spend months or years helping injured clients secure the compensation they deserve. What isn't always appreciated is that some of the most important financial decisions happen after the money, or even just part of the money, has been received.
Recently, we met with a client who had received a substantial workers compensation lump sum payment.
Having sensibly decided to wait until her economic loss claim was resolved before making any major financial decisions, she had simply left the funds in a bank account.
On the surface, that seemed entirely reasonable. However, when we reviewed her circumstances, we identified that the combination of the lump sum payment and her ongoing income protection benefits was likely to result in a significant tax liability for that financial year.
By carefully considering her position, we recommended a tax-deductible contribution to superannuation and utilised unused concessional contribution caps that had accumulated under the carry-forward contribution rules.
The result? ✅ More than $30,000 in tax savings from that strategy alone.
This relatively simple piece of advice made a substantial difference to the client's financial position.
This is one reason many lawyers choose to involve a specialist financial adviser before settlement funds are distributed or major financial decisions are made. Because securing compensation is only part of the journey. Helping clients preserve and make the most of that compensation is equally important.