Few experiences are more devastating than losing a loved one— not only emotionally, but it can also put a tremendous financial burden on surviving family members. If you have recently lost a loved one due to someone’s reckless or negligent actions, you may have the right to file a wrongful death claim against those responsible. While no amount of money can truly replace the person you’ve lost, pursuing a wrongful death lawsuit can help you recover the damages you need to support your family and give them some form of closure. As you navigate this difficult time, it’s important to understand how wrongful death settlements are paid. The process of seeking compensation through a wrongful death claim can be complicated, and without the help of an experienced wrongful death attorney, you may be tempted to move on from the tragedy as quickly as possible and accept an offer that may not reflect the full extent of the damages you and your family have suffered.
A wrongful death lawyer who understands the process and what it takes to build a strong case can make all the difference in securing the financial recovery your family needs to cover medical expenses, funeral costs, and the loss of income that your loved one should have provided.
What is a Wrongful Death Settlement?
A wrongful death lawsuit is a civil action that allows surviving family members to seek accountability and financial compensation for the loss of a loved one who has died due to the negligence or intentional actions of another party.
Some of the most common incidents that lead to wrongful death include:
- Car accidents: Wrongful death is frequently the result of motor vehicle accidents caused by negligent or reckless actions like speeding, tailgating, or driving under the influence. Families of those affected can take legal action against at-fault drivers, auto manufacturers, or government entities that fail to maintain safe roadways.
- Truck accidents: Due to their size and weight, accidents involving semi-trucks and large commercial vehicles often result in significant property damage and life-threatening injuries. When trucking companies or drivers fail to perform the necessary maintenance on trucks, follow safety guidelines, or adhere to necessary regulations, they may be liable for a wrongful death.
- Workplace incidents: Workplace accidents occur in many places and are often fatal in high-risk industries such as construction, oil and gas, and manufacturing. Common causes of wrongful death at work are frequently linked to insufficient training, lack of proper protective equipment, and neglecting safety regulations. Workers’ comp provides death benefits for families following a fatality on the job, but families might also pursue third-party liability claims against negligent parties unaffiliated with their employer.
- Product defects: Manufacturers and product designers must fulfill their legal duty to keep consumers safe by thoroughly testing products and recalling dangerous or faulty ones. Some examples of defective products that may cause fatal injuries include faulty airbags, defective household appliances, and unsafe children’s toys. When defective or dangerous products result in the death of a loved one, eligible family members may file a wrongful death claim against the responsible company.
- Violence: While most wrongful death cases stem from accidents, some can also result from intentional violence that led to the fatality. When someone commits a violent crime and takes a life, they can face serious criminal penalties, though a criminal case does little to support the surviving family members. Families can take civil action to hold the offender liable for wrongful death as a different legal matter than their criminal charges.
If you believe someone else caused your loss, allow a wrongful death lawyer to assess whether they should be liable.
If a wrongful death claim is successful, it may result in either a settlement or a jury-awarded compensation. When you settle your case, you can avoid a lengthy trial and receive compensation more quickly. By choosing to settle, you can also maintain control over the outcome and avoid the unpredictability of a jury’s decision.
However, in cases where negotiations break down or a fair agreement can’t be reached, going to trial may be necessary. Insurance companies are notorious for taking advantage of vulnerable families by offering settlements far below the true value of their claims.
If you’re unsure whether the insurance company’s offer is fair, you should consult a skilled wrongful death attorney who can assess the value of your claim and advise you on the best course of action moving forward.
How Are Wrongful Death Settlements Paid Out?
Surviving family members usually wonder what the payment options are for wrongful death settlements. Wrong death settlements are typically paid out in one of two ways.
Lump Sum Payment: This method involves the at-fault party or their insurer paying the entire settlement amount at once. With this option, the family can have the flexibility to use the funds as they see fit, whether to pay off debts or invest in future needs.
Structured Settlements: This method provides the beneficiaries with compensation in regular installments over a period of time. Depending on the agreement between parties, these payments can be made annually, bi-annually, or monthly.
Each method offers distinct benefits and drawbacks that can have a major impact on a family’s financial future. For example, getting the settlement upfront allows families to immediately pay off debts like medical bills and legal fees instead of delaying payment or accruing interest. However, managing a large amount of money can be challenging without proper financial guidance and strategic planning.
By opting for structured settlements, eligible family members benefit from a steady income stream without the risk of depleting their funds too quickly. The main drawback of a structured wrongful death settlement is that it is difficult to modify once it has been arranged.
For example, if the family’s financial situation evolves, they may find themselves unable to adjust the payment structure to meet new needs. Additionally, there is a risk of non-payment because of the amount of time it can take to get the entire compensation award. However, your lawyer can ensure that the settlement agreement is structured to include protections that help reduce this risk before accepting the offer.
Choosing the appropriate settlement payment structure involves carefully considering the option that best suits the family’s current financial needs and future goals. While the IRS typically doesn’t tax compensatory damages, a settlement awarded to the estate of a deceased person may be taxed through the probate process or if the settlement includes punitive damages. If you still have questions about how wrongful death settlements are paid, consult a knowledgeable wrongful death attorney who can best explain the payment process and what to expect in your specific case.
Who is Entitled to Receive Compensation in a Wrongful Death Case?
Each state has different laws regarding who can file a wrongful death claim, and eligibility is typically determined based on the relationship to the deceased.
In general, the only family members that may be entitled to receive a settlement include:
- The surviving spouse: This applies to legally married couples and those who meet common law marriage requirements. Compensation for surviving spouses often includes losses related to financial support, companionship, and emotional suffering.
- Children: This includes biological and legally adopted children. Surviving children (both minors and adults) may recover damages for the loss of parental guidance, nurturing, and support.
- Parents: If the deceased was a minor, unmarried, or had no children, their surviving parents (biological or adoptive) may be eligible to recover wrongful death damages for the emotional pain, grief, and loss of the relationship they had with their child.
Family members who are usually not eligible to receive compensation in a wrongful death case include extended relatives such as siblings, aunts, uncles, and grandparents. If none of these parties bring a lawsuit, the executor of the estate (also known as the deceased’s personal representative) can file a lawsuit in their place.
Some states require the executor or personal representative to file a claim on behalf of the beneficiaries. The proceeds are then divided among the eligible family members. Other states allow family members to file independently before passing the responsibility to the executor.
When multiple beneficiaries are involved, a settlement is divided among all claimants according to the nature of their relationship and the extent of each beneficiary’s reliance on the deceased. Usually, spouses and minor children, as primary dependents, receive the largest share of the settlement.
Beneficiaries can choose to negotiate the division of funds; however, the matter may be brought to court for resolution if any disputes arise. Anyone pursuing compensation for wrongful death should have an experienced wrongful death attorney protecting their rights to proper financial recovery.
What Damages Are Recoverable After a Wrongful Death?
Settlements in wrongful death cases are often larger due to the significant loss and lasting consequences for the surviving family members of the deceased. Not only are surviving family members faced with emotional trauma, but the unexpected tragedy can impose considerable financial challenges.
In wrongful death cases, the following types of damages may be available:
Economic damages: These damages represent financial losses that can be calculated in exact dollar amounts. Family members should hold onto bills, receipts, and other financial paperwork to help simplify the process of calculating economic damages.
This usually includes:
- Funeral and burial costs
- Lost inheritances
- Property damage, if applicable
- Medical expenses (incurred before death)
- Lost future earnings (including expected income and benefits)
- Loss of household services the deceased would have provided
Non-economic damages: These damages include losses that can’t be measured by specific dollar amounts and represent the profound impact the incident has had on the victim’s life. Keeping notes on the mental and emotional pain caused by the loss of a loved one can serve as important evidence in proving the extent of suffering. While it may seem impossible to put a price on something like the loss of love or guidance, non-economic damages often represent a significant portion of the wrongful death settlement.
This may include:
- Pain and suffering endured by surviving family members
- Emotional distress and mental anguish
- Loss of consortium (for a surviving spouse)
- Loss of companionship and emotional support
- Loss of parental guidance and nurturing
- Anxiety or depression caused by the sudden loss
Punitive damages may be available in cases where the individual or organization at fault demonstrated especially reckless behavior with flagrant disregard for the safety of others. Unlike compensatory damages (economic and non-economic), these damages do not match up with specific losses. Instead, courts use them to punish the at-fault party and discourage future acts of gross negligence or misconduct.
Every wrongful death lawsuit is unique, with settlement amounts ranging from thousands to several million dollars in some cases. Factors commonly considered by insurance companies in determining the amount of compensation to offer include the decedent’s age, future earning potential, and general health while alive.
A wrongful death lawyer will work with financial and medical experts to accurately assess the full extent of damages available in your case and advocate for a fair and just outcome on your behalf. Time is of the essence in these cases, as delays may result in the loss of valuable evidence and jeopardize your chance to hold the at-fault party accountable. Reach out and schedule your no-obligation consultation with a seasoned wrongful death attorney as soon as possible.
Schedule a Free Consultation with a Dedicated Wrongful Death Lawyer Today
After the tragic loss of a loved one, you may be unsure about which direction to go with your wrongful death settlement payment. If you have lost someone due to the reckless or careless actions of another person, a seasoned wrongful death attorney can determine if you are eligible to file a wrongful death lawsuit and improve your chances of achieving some sense of justice and financial recovery for your family. Your lawyer will also review your financial needs and help you make the right decision regarding your settlement payment.
Want to learn more about how a wrongful death attorney can help? Don’t hesitate to schedule your complimentary case review today. Doing so can start your family on the path to financial support and justice.
