Personal Injury Lawyer Port Charlotte 

After an injury in Port Charlotte, it’s important to understand your legal rights. At Donaldson & Weston, our experienced personal injury lawyers work tirelessly to help clients recover the compensation they deserve. Reach out to us at 866-939-7576 for a free consultation.

Our personal injury services in Port Charlotte include:

• Motorcycle Accidents
• Car Accidents
• Truck Accidents
• Pedestrian Accidents
• Slip and Falls

What Are Structured Settlements in Personal Injury Claims?

When someone is injured in an accident in Port Charlotte and receives a settlement, the payout can be handled in a couple of ways. One option is a lump sum, which provides all the compensation at once. The other is a structured settlement, which breaks the payment into installments over time. Each method has its advantages, depending on the situation.

Structured settlements are common in personal injury cases involving long-term injuries or large sums. They provide a steady stream of income rather than a one-time payment. This approach can offer financial stability for the injured person, especially if they are unable to return to work or will need medical care for years to come.

What Is a Structured Settlement

A structured settlement is a financial arrangement in which the injured party receives scheduled payments over a set period. These payments can be made monthly, yearly, or in another agreed-upon format. The terms of the structure are negotiated as part of the overall personal injury settlement.

Once finalized, a structured settlement is typically funded through the purchase of an annuity from an insurance company. This annuity ensures that the payments will be made as promised, regardless of market conditions or other outside factors.

Structured settlements are often used in cases involving:

• Serious or permanent injuries

• Minors or individuals unable to manage large sums of money

• Wrongful death claims where surviving family members receive compensation

• Long-term medical needs or loss of earning capacity

How Payments Are Set Up

Every structured settlement is unique. The payment schedule can be customized to meet the specific needs of the injured person. For example, the structure may begin with a larger initial payment to cover immediate expenses like surgery or outstanding medical bills. After that, smaller monthly or annual payments can be made to support ongoing needs.

Some people choose to include future lump sums in their plan, such as payments every five years or when certain milestones are reached—like a child turning 18 or 21. The structure is flexible during the negotiation phase but becomes fixed once agreed upon.

The most important part of the setup is making sure the schedule matches the long-term financial and medical needs of the injured party.

Benefits of Structured Settlements

One of the main advantages of a structured settlement is financial security. It offers a reliable source of income, which can be helpful when injuries prevent someone from working or earning a stable living. Spreading the compensation over time can also reduce the temptation or risk of spending the money too quickly.

Structured settlements are tax-free in most personal injury cases. The Internal Revenue Service (IRS) does not typically consider compensation for physical injuries or sickness as taxable income, and structured payouts maintain that tax-free status. This allows recipients to keep more of their money compared to other types of income.

Another benefit is protection from poor financial decisions. Not everyone has experience managing a large amount of money. A structured settlement provides some guardrails by distributing funds slowly rather than all at once.

Drawbacks to Consider

While structured settlements can be a good fit in many cases, they are not right for everyone. One major drawback is the lack of flexibility after the agreement is finalized. Once the structure is in place, it cannot be changed. If the recipient later needs a large sum for an emergency or investment opportunity, the scheduled payments may not be enough.

It’s also important to consider inflation and rising costs of living. A fixed payment that seems sufficient today may not stretch as far 10 or 20 years from now. Some structured settlements do offer cost-of-living adjustments, but not all do.

There’s also the question of access. Some people prefer having full control over their money to use it as they see fit. A structured settlement limits that control.

Comparing Structured Settlements and Lump Sums

Choosing between a structured settlement and a lump sum often comes down to the needs and preferences of the injured person. A lump sum may be more appropriate when:

• The injured person has a solid financial plan

• Immediate access to funds is needed for debt, medical care, or relocation

• The overall compensation amount is relatively modest

• The individual prefers to invest or manage the money independently

A structured settlement may be a better fit when:

• Long-term care or income is needed

• There are concerns about money management

• The injured person is a minor or legally incapacitated

• The case involves a large sum that needs to last for decades

Before making a decision, it’s wise to consult with a financial advisor and a personal injury lawyer who understands the implications of each choice.

Can Structured Settlements Be Sold

In some cases, individuals with structured settlements later try to sell part or all of their future payments to companies that offer lump-sum buyouts. While this is legally allowed in Florida, including in Port Charlotte, it must be approved by a judge.

The court must find that selling the future payments is in the best interest of the person receiving the settlement. Often, these transactions result in a loss of value, as the lump sum offered is usually much less than the total value of the structured payments.

That’s why it’s important to think carefully about whether a structured settlement is the right choice before agreeing to it in the first place.

Structured Settlements in Florida Injury Cases

Florida law supports the use of structured settlements, particularly in serious injury and wrongful death claims. If the case is resolved through a lawsuit and goes to court, a judge may even order the use of a structured settlement if it is deemed to be in the best interest of the injured party.

However, most personal injury claims in Port Charlotte are resolved through negotiated settlements. This gives both sides more control over how the compensation is paid. Working with an attorney during the negotiation process can ensure that the structure, if chosen, works to meet your long-term needs..

Port Charlotte Personal Injury Attorney Standing by Your Side

If you’ve been hurt in Port Charlotte due to someone else’s negligence, the team at Donaldson & Weston is here to help. A personal injury attorney will fight for the compensation you need to recover. Don’t wait—call 866-939-7576 to schedule your free consultation.