How Are Wrongful Death Settlements Paid?

AUTHOR: A.J. Bruning | November 15, 2024
How Are Wrongful Death Settlements Paid?

A wrongful death case arises when someone dies due to another person’s negligent, wrongful, or intentional actions. Families can seek compensation for their losses through a settlement, which may be paid as a lump sum, structured payments, or a combination of both.

An experienced wrongful death lawyer can evaluate the case, gather evidence, negotiate with insurance companies, and ensure that the settlement fairly compensates the family for medical expenses, lost income, and emotional suffering – thereby guiding them through the complicated legal process.

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Who Can File a Wrongful Death Claim?

Wrongful Death report and gavel in a court.

A wrongful death claim or lawsuit is filed when someone dies due to the wrongful actions or negligence of another person, business, or entity. These claims aim to seek compensation for the surviving family members or dependents of the deceased, helping them recover from the emotional and financial effects of their loved one’s death. However, not just anyone can file a wrongful death claim. Laws vary by state, but typically, the following individuals are eligible to file:

  • Immediate Family Members – In most states, the deceased person’s spouse, children, or parents can file a wrongful death claim. These immediate family members are usually the first to be given legal standing. For instance, a spouse can file if their husband or wife has died, while children can file on behalf of a deceased parent. If the deceased person is a minor, the parents are generally allowed to file a claim.
  • Financial Dependents and Life Partners – Some states allow individuals who were financially dependent on the deceased to file a claim, which can include life partners, even if they were not legally married, or other relatives who were dependent on the deceased for financial support.
  • Distant Family Members – In some states, distant relatives, such as siblings or grandparents, can file a wrongful death lawsuit. The eligibility of these family members depends on their relationship to the deceased and state law.
  • Personal Representatives – In many states, the estate’s personal representative (executor) may file a wrongful death lawsuit on behalf of the deceased person’s estate. The goal here is to recover compensation that can be distributed according to the deceased person’s will or, if there is no will, in line with state inheritance laws.

Each state has specific laws about who can file and the time limits (statutes of limitations) within which the claim must be filed. It’s important for surviving family members to speak with a wrongful death lawyer to determine their eligibility and ensure they file the claim within the required timeframe. The compensation sought can help cover funeral costs, loss of income, and emotional distress.

Proving a Wrongful Death Claim Successfully

In order for the family or estate of the deceased to successfully bring a wrongful death claim, certain legal elements must be proven. These elements vary slightly depending on state law but generally include four key components:

  • Death of a Person – The first and most basic element of a wrongful death claim is that a person has died, which can result from many different situations, such as medical malpractice, a car accident, or even a criminal act. The death must have occurred directly as a result of the actions or negligence of another party.
  • Negligence or Intent – The second element requires that the death was caused by the wrongful or negligent actions of the party being sued (the defendant). Negligence means that the responsible party failed to act in a reasonable manner, leading to death. For example, if someone operates a vehicle recklessly and causes an accident that kills another person, their reckless driving can be seen as negligent. In some cases, wrongful death may involve intentional actions, as in cases of homicide, but negligence is the more common basis.
  • Causation – The third element that must be proven is a direct link between the defendant’s actions and the person’s death. The family or estate filing the claim must show that the death would not have occurred if it were not for the defendant’s actions or failure to act. Causation requires demonstrating that the death was a direct and foreseeable result of the defendant’s behavior. Without this clear connection, the wrongful death claim may not succeed.
  • Damages – Finally, the surviving family members or the deceased person’s estate must show that they have suffered damages as a result of the death. – The damages element is important because wrongful death claims are meant to provide compensation to help the survivors cope with the financial and emotional repercussions of their loved one’s death.

Meeting all of these elements is essential for a wrongful death claim to succeed. Each part helps to establish the legal responsibility of the defendant for the tragedy – and for the resulting losses.

Types of Helpful Evidence in Wrongful Death Cases

Bags of Evidence

Proving a wrongful death claim or lawsuit requires strong and credible evidence. The goal is to show that the defendant’s actions directly led to the death and caused harm to the surviving family members. Here are some of the most essential types of evidence used to support a wrongful death claim:

  • Medical Records and Autopsy Reports – Medical records are often the foundation of a wrongful death case. They provide detailed documentation of the deceased person’s injuries, treatment, and cause of death. Autopsy reports can also be critical as they give an official medical explanation for how the person died. These records help establish the connection between the defendant’s actions and the death.
  • Accident or Incident Reports – In cases involving accidents, such as car crashes or workplace incidents, official reports from law enforcement or other authorities are essential. These reports often include important details about how the accident occurred, who was involved, and whether any laws were broken. An incident report can be valuable in establishing what led to the death and who is responsible.
  • Witness Statements – Testimonies from witnesses who saw the accident or event unfold can be very powerful in a wrongful death claim. Witnesses may provide first-hand accounts of what happened, such as reckless behavior, dangerous conditions, or negligent actions by the defendant. Their statements can help to build a more complete picture of the events leading up to the death.
  • Expert Testimony – In many wrongful death cases, expert witnesses are brought in to provide specialized knowledge. For example, medical experts can explain complex medical issues related to the death, while accident reconstruction experts can help determine how a crash or incident occurred. These experts use their training and experience to offer professional opinions that can support the claim.
  • Financial Documents – Proving the financial consequences of the death is also important in a wrongful death case. Evidence such as pay stubs, tax returns, or employment records can help demonstrate the loss of income and financial support the deceased provided to their family. These documents are used to calculate the damages the family may be entitled to receive.
  • Photographs and Videos – Visual evidence, like photographs or videos from the scene of the accident or event, can be powerful in proving the circumstances that led to the wrongful death. Images can show hazardous conditions, property damage, or even the condition of the deceased before medical treatment.

Compensable Losses in a Wrongful Death Claim or Lawsuit

LAWSUIT - word on wooden cubes on background of judge's gavel.

In a wrongful death claim or lawsuit, surviving family members may seek compensation to help them cope with the financial and emotional burdens their loved one’s death has caused. The losses for which compensation is available can vary based on state laws, the specifics of the case, and the losses that survivors suffered. The following damages are common in wrongful death claims:

  • Economic Damages – These damages compensate for quantifiable financial losses incurred due to the death. They can include:
  1. Medical Expenses – If the deceased received medical treatment before passing away, the family can claim reimbursement for these costs, including hospital bills, doctor visits, and any necessary medical equipment.
  2. Funeral and Burial Costs – Families are often burdened with expenses related to funeral services, burial plots, and cremation. Compensation can help cover these costs, which may be significant.
  3. Loss of Income – If the deceased was the primary breadwinner, their death could lead to significant financial hardship for the family. Compensation for lost income can include the income the deceased would have earned throughout their lifetime, taking into account factors like age, occupation, and work history.
  4. Loss of Benefits – If the deceased received benefits such as health insurance, retirement contributions, or pensions, the family may be entitled to compensation for the value of these benefits that are now lost.
  • Non-Economic Damages – These damages address the emotional and intangible losses resulting from the death. They can include:
  1. Pain and Suffering – Surviving family members may experience immense emotional pain and grief due to the loss of their loved one. Compensation for pain and suffering seeks to acknowledge the emotional toll and mental anguish endured by the family.
  2. Loss of Companionship – The death of a loved one can disrupt family relationships and lead to feelings of isolation and loneliness. Compensation for loss of companionship acknowledges the value of the emotional and social support the deceased provided.
  • Punitive Damages – In some cases, if the defendant’s actions were particularly reckless or intentional, the court may award punitive damages. These damages are designed to punish the wrongdoer and deter similar behavior in the future. While they are less common, they can significantly increase the total amount of compensation awarded.

The goal of these compensatory damages is to help the survivors recover from their loss and rebuild their lives. Seeking legal advice from an experienced wrongful death attorney can ensure that all potential compensable losses are pursued.

Ways of Paying Wrongful Death Settlements

When a wrongful death claim is settled, the compensation awarded to the surviving family members or the estate of the deceased can be paid out in several different ways. The method of payment may vary depending on the specifics of the case, the preferences of the parties involved, and any legal or financial considerations. The following are the most common ways of paying out a wrongful death settlement:

  • Lump-sum Payment – One of the most straightforward methods is a lump-sum payment. In this arrangement, the defendant or their insurance company pays the entire settlement amount in one single payment. Claimants often prefer this option because it provides immediate access to the funds, allowing them to address financial needs, such as paying off debts, covering funeral expenses, or supporting ongoing living costs.
  • Structured Settlement – In some cases, the settlement may be structured to provide payments over time rather than as a lump sum. This type of settlement involves an agreed-upon schedule where the claimant receives regular payments at specific intervals, such as monthly or annually. Structured settlements can be beneficial for managing long-term financial needs, ensuring that the funds last over a more extended period. This arrangement may also provide tax benefits in certain situations, as structured settlements can sometimes be exempt from taxation.
  • Partial Payments – Another option is to negotiate partial payments, where the defendant pays a portion of the settlement upfront and the remaining amount later. This method allows the claimant to receive some immediate financial relief while still ensuring they receive the total agreed-upon compensation over time.
  • Trust Funds – In some cases, especially involving minors or dependents, a trust fund may be established to manage the settlement funds. This arrangement protects the money until the beneficiaries reach a certain age or meet specific conditions. A trustee manages the funds, making disbursements as needed for the beneficiaries’ education, healthcare, or other essential expenses.
  • Combination of Payment Methods – A settlement can also involve a combination of the methods mentioned above. For example, a claimant may receive a lump-sum payment for immediate needs while agreeing to a structured settlement for the remaining amount. This flexibility can be beneficial in addressing both short-term and long-term financial needs.

Before accepting any settlement offer, it’s important for the surviving family members to consult a skilled wrongful death attorney. They can provide guidance on the best payment method based on individual circumstances and ensure that the settlement adequately compensates the family for their losses.

Contact a Knowledgeable Wrongful Death Lawyer Today

If you recently lost a loved one in an occurrence due to someone else’s negligence, a knowledgeable and compassionate wrongful death attorney can help. In addition to filing the claim, your lawyer can negotiate with insurance company representatives or litigate your case to a resolution in court. They can also explain the various ways of paying out your wrongful death compensation and advise on the best option for your unique circumstances.

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A.J. Bruning

Founder

I was born and raised to represent individuals who have been needlessly injured. I mean that literally. At a young age my father would tell me about the clients he was representing. I would meet them and take pride in their admiration of my father. I always knew I wanted to be a lawyer and represent clients that needed my help.

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