Losing a loved one is an unimaginable tragedy. When that loss is due to someone else’s negligence or wrongdoing, the emotional toll is compounded by a sense of injustice. While no amount of money can ever replace a loved one, a wrongful death settlement can provide financial relief and a semblance of justice. But how exactly are these settlements paid out? This is a question that many people find themselves grappling with. As an attorney with the firm, I’m here to shed some light on this complex issue.
Types of Wrongful Death Settlements
Firstly, it’s crucial to understand that wrongful death settlements can come in various forms:
- Lump-Sum Payments: A one-time, all-encompassing payment.
- Structured Settlements: Payments are made over a specified period.
- Trust Funds: Money is placed in a trust for specific beneficiaries.
Lump-Sum Payments
The most straightforward method is a lump-sum payment. Once the settlement is agreed upon, the defendant pays the entire amount in one go. This is often the quickest way to close the case and allows the family to move on, albeit with a heavy heart.
Structured Settlements
In some instances, a structured settlement may be more beneficial. Payments are made over time, providing a steady income stream. This can be particularly useful if the deceased was the primary breadwinner, as it mimics a salary.
Trust Funds
Trust funds are less common but can be set up to benefit minors or to cover specific costs like education or healthcare.
Who Receives the Settlement?
In Florida, the personal representative of the deceased’s estate is responsible for bringing a wrongful death claim. The settlement is then distributed among the estate and surviving family members, according to Florida law. It’s essential to consult an attorney with the firm to navigate these complex legal waters, especially given the recent change in the statute of limitations in Florida to two years.
Tax Implications
Generally, wrongful death settlements are not considered taxable income. However, some components, like punitive damages, may be subject to tax. It’s advisable to consult a tax professional alongside an attorney with the firm to understand the full financial picture.
Conclusion
While the emotional void left by a wrongful death can never be filled, understanding how settlements are paid out can offer some peace of mind during a tumultuous time. Whether you opt for a lump-sum payment, a structured settlement, or a trust fund, each option has its own set of implications that should be carefully considered.
If you’re dealing with a wrongful death case in Fort Lauderdale or the surrounding areas we serve, don’t hesitate to reach out to Tucker Law at 1-800-TUCKERWINS. We’re here to guide you through this difficult journey, offering our “Win or it’s Free, Tucker Law Guarantee.”
Remember, don’t just lawyer up, Tucker Up.
