FAQ
Structured Judgments / Settlements in Florida – FAQs
Question index — Structured Judgments / Settlements in Florida – FAQs
03 entries
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A structured payment arrangement means compensation is paid over time in periodic payments rather than as a single lump sum. These payments are typically funded through an annuity purchased by an insurance company.
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Structured settlements can provide:
- Long-term financial security through steady, predictable income;
- Protection against overspending or mismanaging a large lump sum;
- Guaranteed payments backed by an insurance company;
- Tax advantages — payments for personal injury or wrongful death are generally tax-free under federal law.
These benefits make structured settlements especially useful in cases involving lifelong care or reduced earning capacity.
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Structured judgments are generally not mandatory in Florida. However, structured settlements are commonly used in Florida, particularly in cases involving: catastrophic injuries; birth injuries; long-term medica needs; and wrongful death claims. A structured settlement is a way of receiving compensation over time instead of in a single lump sum. Instead of one check, payments are made in scheduled installments—monthly, annually, or at specific future dates. Florida law also provides protections for recipients through the Structured Settlement Protection Act, which governs transfers of future payments and requires court oversight.
