Besides being an emotionally devastating experience, losing a loved one can also have major financial implications. In a wrongful death lawsuit, the primary goal is to hold the responsible party accountable for their actions. The lawsuits are filed when a person dies as a result of someone else’s negligence or intentional act. While the emotional toll cannot be quantified, the financial compensation does help in easing the burden and providing some form of justice.
Key Takeaway
Money from a wrongful death lawsuit goes to the deceased’s surviving family members. Despite the specific rules on who gets how much varying from state to state [United States law], the primary beneficiaries, that is, surviving spouse(s), children, and sometimes parents of the deceased, are the ones who get the money in a wrongful death lawsuit.
There are two categories of beneficiaries: primary and secondary. Under primary beneficiaries, there are the people who depended on the deceased for financial support or companionship and they include children, deceased parents, and spouse. Regarding secondary beneficiaries, these are the members of the extended family and they include siblings, grandparents, or even grandchildren. In case there are no primary beneficiaries, then the money goes to the secondary beneficiaries depending on the state law.
The money might be distributed as below (just an example):
- If there’s a surviving spouse and children, the spouse might get a larger share, with the children splitting the rest.
- If there’s only a spouse or only children, they would generally split the money.
- If there’s no spouse or children, the parents might inherit the settlement.
Who Gets the Money in a Wrongful Death Lawsuit
Distribution of compensation in a wrongful death lawsuit varies depending on state laws and the specific circumstances.
In a wrongful death lawsuit, the immediate family members are the primary beneficiaries and often receive the largest portion of the settlement or verdict. Typically, this includes the surviving spouse and children.
In some cases, other dependants or individuals who were financially dependent on the deceased are also entitled to compensation. Such entities include parents, siblings, or even a domestic partner. Since the eligibility of such individuals varies from state to state, it is important to consult with a legal professional in order to understand the specific laws that apply in your particular situation.
Related Article: Is Power Of Attorney Responsible For Nursing Home Bills
Determination of Compensation Distribution
Among the key factors that determine the distribution of compensation in a wrongful lawsuit is the relationship between the deceased and the potential beneficiaries. Immediate family members like the surviving spouse and children are typically given priority in terms of compensation.
The financial impact of the deceased’s death on potential beneficiaries is also another factor. This includes factors such as loss of income, loss of financial support, and loss of services that the deceased provided. The financial impact is assessed based on factors/elements like the deceased’s income, potential future earnings, and the financial needs of the beneficiaries.
Although the immediate family members receive the largest portion of the compensation, there are factors that influence the division of the settlement or verdict. One of them and perhaps the significant is the age of the beneficiaries. Younger children receive a larger portion of the compensation to account for their long-term financial needs. Similarly, in case the surviving spouse is elderly or has major financial needs, they get to receive a larger share of the compensation. Also, the division is impacted by the extent of financial dependency on the deceased. In case a family member was financially dependent on the deceased, their share of the compensation would be larger to account for the loss of financial support.
Putting the Deceased’s Estate into the Picture
In a wrongful death lawsuit, the deceased’s estate represents their assets, liabilities, and legal rights. It is responsible for filing the lawsuit on behalf of the deceased and pursuing compensation claims.
The compensation that has been awarded in a wrongful death lawsuit becomes part of the deceased person’s estate. When it comes to its distribution, it is distributed according to the will of the deceased person or according to state law, if no will is available/present. In such scenarios, the distribution of the compensation to the beneficiaries is overseen by the executor of the state.
Common Misconception
There are certain misconceptions that exist about who gets the money in a wrongful death lawsuit. Among the misconceptions is that only the immediate family members are eligible for compensation. This is not the case since other dependants or individuals who were financially dependent on the deceased are also entitled to compensation – it is not a must but they are put into the picture in some cases.
Compensation being automatically divided equally among the beneficiaries is another misconception. In reality, the distribution of compensation is based on several factors, including the relationship between the deceased and the beneficiaries, the financial impact of the deceased’s death, and the needs of the beneficiaries.
Alternative Sources of Financial Assistance
Apart from being compensated for the wrongful death lawsuit, there are other potential sources of financial assistance available. These sources include life insurance policies, worker’s compensation benefits, and Social Security survivor benefits.
Life insurance policies are often taken out to provide financial support in the event of a death. In case the deceased had a life insurance policy, the beneficiaries named in the policy are entitled to a payout. This is also the case if the death takes place in the workplace since the worker’s compensation benefits would be available to the surviving family members.
Social Security survivor benefits are available to certain family members of the deceased person who was eligible for Social Security benefits. Such benefits do provide financial support to the surviving spouse, children, or dependent parents.
Final Remarks
It is crucial to have an understanding of the financial aspects of a wrongful death lawsuit when seeking compensation for the loss of a loved one.
Since navigating the landscape might be complex and overwhelming, you would have to seek legal guidance from an experienced attorney specializing in wrongful death cases. The attorney would help you understand your rights, assess the potential compensation you might be entitled to, and guide you through the legal process.
Note: While choosing an attorney, look for someone who has a track record of success in handling wrongful death cases.
