How you’ll receive settlement funds in Louisiana: what to expect

Short answer: The insurance company usually issues a single check made payable to whoever appears on the settlement agreement and release. In Louisiana that often means the check will be written to you, to you and your attorney, and sometimes to other parties (medical providers, lienholders, or a guardian for a minor). Your attorney (if you have one) will normally endorse and deposit the check into a client trust account, resolve liens and fees, then deliver your net proceeds to you. But the exact path depends on who is on the check and whether special rules apply (for example, minor or interdicted persons, workers’ compensation liens, Medicare or Medicaid interests).

Detailed answer — step by step (what typically happens under Louisiana practice)

1. Who the check is payable to

The insurance company issues the settlement check according to the names it is instructed to pay. Common payee combinations include:

• Claimant alone (your name).
• Claimant and attorney (“John Doe and Jane Attorney”).
• Claimant, attorney and one or more lienholders or medical providers (when the insurer is protecting itself from future claims by those lienholders).
• An institutional payee (for example, a hospital or a workers’ compensation insurer), if you’ve agreed they should be paid directly to resolve a lien or subrogation claim.

If you are a minor or legally incapacitated, the insurer may issue the check to a guardian, conservator, or into court, depending on the circumstance. When a minor is involved, Louisiana courts often must approve a settlement or appoint a representative to accept funds on the minor’s behalf.

2. Checks payable jointly (multiple payees)

When the check lists more than one payee, banks generally require endorsement from each payee before allowing deposit or negotiation. That’s why many attorneys ask the insurer to make the check payable to both the client and the attorney, which protects the attorney’s right to collect agreed fees. Your attorney should place funds in a trust account (IOLTA or similar) and follow Louisiana professional rules for client funds before distributing them.

3. Lienholders, medical bills, Medicare/Medicaid, and subrogation

Liens and subrogation interests (medical providers, private insurers, workers’ compensation carriers, Medicare/Medicaid) can affect who must be paid from settlement proceeds. Often the insurer will add a lienholder as a co-payee, or your attorney will hold back funds to resolve outstanding liens before sending you the net.

Medicare and Medicaid have rules that can require repayment of conditional or paid benefits from your settlement. If those agencies are involved, your attorney should address those claims before you receive final funds.

4. Attorney handling and timing

If you hired an attorney, the usual sequence is:

1. You sign the settlement agreement and release.
2. The insurer issues the check per instructions.
3. Your attorney receives the check, endorses it, deposits it into the client trust account.
4. The attorney pays liens, court costs, and their fee as agreed, resolving outstanding claims or negotiating reductions where possible.
5. The attorney issues a settlement statement and sends you your net proceeds (check or wire) after funds clear and all obligations are satisfied.

That process can take days to several weeks: banks may place holds to clear funds, lienholders may require time to negotiate, and counsel must ensure all releases and obligations are satisfied before distribution.

5. If you do not have an attorney

If the insurer sends the check directly to you, you will need to endorse it and deposit or cash it yourself. Be careful: if the settlement requires you to sign a release, you should ensure you understand the release terms before cashing a check. Once you cash a check that implements a full release, you may have given up your right to pursue further claims.

6. Special rules for minors and incapacitated persons

Louisiana practice requires extra protection for minors and interdicted (legally incapacitated) persons. Courts or guardians often must approve compromises for minors and oversee how settlement funds are handled (for example, funds might need to be deposited into a blocked account, or the court may appoint someone to receive funds on the child’s behalf). If your case involves a minor or someone under interdiction, ask an attorney about the required court procedures.

7. What you should receive in writing

Request a written settlement statement that shows:

• Gross settlement amount.
• All deductions (attorney’s fee, costs, liens, medical bills, taxes if any).
• Net amount you will receive and the proposed payment method (check or wire).

Relevant Louisiana resources

For statutes and court rules, use the Louisiana Legislature website and the Louisiana Supreme Court rules pages to confirm procedures that may apply to your situation:

• Louisiana Legislature — search statutes and codes: https://legis.la.gov/Legis/LawSearch.aspx
• Louisiana Supreme Court — rules and professional guidance (attorney trust accounts and ethical duties): https://www.lasc.org/rules

Common scenarios and what they mean for you

Scenario A — Check payable to you only

You receive and deposit the check. Make sure liens or subrogation aren’t outstanding before you cash it. If you sign a release, you likely waive further claims.

Scenario B — Check payable to you and your attorney

Your attorney will deposit to a trust account, pay liens/fees, and send you the remainder.

Scenario C — Check payable to a guardian or issued into court (minor/incapacitated)

The court or guardian manages the funds according to Louisiana court procedures. You will not receive funds directly until the guardian or court authorizes distribution.

Helpful hints — what to do now

• Do not sign or cash anything until you understand the release: cashing the settlement check often finalizes the deal.
• Ask the insurer or your attorney exactly who will be named on the check and why.
• Request a full accounting in writing before funds are distributed (gross, deductions, net).
• If you hired a lawyer, ask how long it will take after the check arrives to get your net payment, and whether the attorney will negotiate liens on your behalf.
• If a minor or incapacitated person is involved, ask whether court approval is required and how the funds will be held or disbursed.
• Check for potential Medicare/Medicaid liens or workers’ compensation subrogation — these claims can reduce the money you receive unless properly handled.
• Keep copies of the settlement agreement, release, and any accounting your attorney provides.

When to speak with an attorney

If you have multiple lienholders, a question about whether the check is being issued correctly, a minor or interdicted person involved, or any uncertainty about who must sign or how funds will be used, consult an attorney familiar with Louisiana practice. A lawyer can protect your rights, negotiate lien reductions, and make sure funds reach you properly.