Whether the settlement of a Texas Wrongful Death case should be structured heavily depends on the facts and circumstances of the case. The answer to this question involves a considerable discussion which should be had with an attorney who has handled a number of these cases. However, some general guidelines are helpful.
Structured settlements are almost always funded by an annuity purchased by the liability insurance company. Generally, when short term interest rates are high the settlement annuities pay more. When short term interest rates are low the settlement annuities pay less. Short term interest rates have been at near historical lows for some time now and thus annuities are not paying very well.
If the Plaintiff is a responsible adult and is capable of managing their settlement proceeds then a structured settlement may not be in their best interest. If the Plaintiff is a minor then a structured settlement may be a good alternative to paying the settlement funds into the registry of the Court, where it will only earn certificate of deposit rates, or paying the funds into a trust where the funds may be depleted by trustee’s fees.
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