How Are Wrongful Death Settlements Paid Out in Texas?

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Key Takeaway:

In Texas, wrongful death settlements can be paid out as a lump sum, in structured or partial payments, through a trust fund, or in combination—depending on the family’s needs and the terms of the agreement.

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Losing a loved one is always heartbreaking—especially when the loss is due to someone else’s negligence. While no amount of money can replace what you’ve lost, a wrongful death settlement can help ease the financial burden and give your family space to grieve and heal.

In Texas, surviving family members may be entitled to compensation for:

• Funeral and Burial Expenses

• Loss of Consortium or Companionship

• Loss of Financial Support

• Emotional Pain and Suffering

• And More

But how are these settlements paid out?

Common Payout Methods for Wrongful Death Settlements in Texas

The method used to distribute the settlement can vary depending on the agreement reached between the parties. Here are the four most common payout options:

1. Lump-Sum Payment

This is the most straightforward method—the full settlement is paid at once.
It’s often the preferred option for families who need immediate access to funds for things like funeral costs, household bills, and legal expenses.

2. Partial Payments

Sometimes, a portion of the settlement is paid right away, and the rest is distributed at a later date.
This can help cover urgent costs while allowing time to work out longer-term financial plans.

3. Structured Payments

In this case, the settlement is paid over time, such as monthly or annually.
Structured settlements can provide a steady stream of income for surviving spouses or children, and are often used to support long-term care or lost future income.

4. Trust Funds

If the beneficiaries include minors or dependents, the funds may be placed in a trust, managed by a trustee.
This ensures the money is used responsibly for necessary expenses like education, housing, or healthcare until the minor comes of age.

Combination Method

Many families opt for a custom approach, combining two or more of the above.
For example, a surviving spouse might receive a lump sum for immediate expenses, while the children’s portion is placed in a trust.

Considering a Wrongful Death Settlement? Call Shaw.

Every case is different. The right payout method depends on your family’s current and future needs—and the specifics of your legal claim.

Never accept a settlement without talking to a lawyer first. An experienced wrongful death attorney can help you understand your rights, evaluate your options, and ensure your family is fully protected.

Call Shaw at 800-862-1260 to schedule your free case evaluation. There are no fees or obligations—just the expert guidance you need during one of life’s most difficult moments.

We look forward to serving you.