How to Determine Wrongful Death Settlements
Wrongful death settlements lawsuit is basically a claim for monetary damages from the negligent party that holds responsibility for another’s demise.
A negligent party can be a medical practitioner, a motorist, or a manufacturer.
Determining the number of damages in wrongful death lawsuits is hard and frequently calls for the knowledge of financial experts and economists.
Lawsuits that come to a resolution through wrongful death settlements vary in the final settlement amount.
Cases that reach trial through the court framework might bring about full dismissal of the case or differing damage amounts.
Common Scenarios for Wrongful Death Cases
Wrongful death cases often arise when there’s evidence to support that death wouldn’t have come, but for the wrongdoing of another.
If the person who’s responsible for the misfortune is found to be negligent, they can face a wrongful death action.
Here are some of the common scenarios that can result in a wrongful death case:
- The intentional killing of a victim
- When a victim dies because of medical malpractice. E.g., if a doctor doesn’t diagnose a condition or is careless in their conduct and a patient dies
- If a person dies as a result of auto accident injuries
How to Determine Such Settlements?
Putting an economic value on a person’s life is extraordinarily hard.
However, several factors may be taken into consideration to help in calculating a settlement amount. Such factors include:
- The age of the decedent
- The decedent’s earning potential
- The health status of the decedent
- The decedent’s earnings at the time of the demise
- The age and situation of the decedent’s dependents
- The decedent’s education and training
- Healthcare expenses and other bills arising from the decedent’s injuries
- Funeral and burial costs
- Value of lost benefits such as pensions, medical insurance, and inheritance
The number of damages should not be a simple ballpark estimate.
Objective proof must support the final amount.
Economist and other professional witnesses can examine the decedent person and their circumstances and factor various instances to establish an amount.
What Is The Process Of Paying Out?
The insurance provider of the party who is to blame for the death usually pays for wrongful death settlements.
Insurance policies generally have a coverage restriction amount, above which the insurance agency will no longer pay.
The at-fault person or entity will have to pay for the remaining amount themselves.
Several factors come into play when determining how to divide wrongful death settlements among family members, including:
- Whether the decedent has surviving minor children
- Whether all the beneficiaries are above 18 years of age, and if they can come to an agreement on a fair division of the settlement amount
If the decedent’s children are minors, a court can appoint a guardian to represent the best interest of the kids.
The guardian will make sure that any resulting settlements are fair to the children and their financial interests are adequately met.
If the beneficiaries are adults who are willing to cooperate, they can use the same lawyer to bargain for a settlement.
The beneficiaries can come up with a settlement amount they believe is just. And, then inform their attorney on how they want the money division to occur.
If the beneficiaries can’t agree on the division, then each person may need to hire a different lawyer to represent their individual interest.
So, multiple lawsuits may arise against the negligent party who is to blame for the wrongful death.
Are the Death Settlements Taxable?
The IRS (Internal Revenue Service) mandates that most wrongful death settlements are non-taxable on the grounds that the payments are compensatory.
That means the purpose of the compensation is to account for the decedent’s surviving family’s pain and suffering.
If the damages are punitive or serving the purpose of punishing the liable party, then the IRS might tax them.
It’s essential that any award of damages clearly defines whether the damages are compensative or punitive in nature.
That will assist in resolving any confusion when sending a report to the IRS.
Anybody who might get a wrongful death settlement ought to consult a lawyer and accountant to check the taxation repercussions.
They should do so before accepting a settlement proposal.
What Can You Do If You Disagree With A Wrongful Death Settlement?
If you don’t agree with a settlement, then you can commence to trial and try to prove the rightful amount of damages.
Proceeding to court may be risky because you don’t have a guarantee that you will acquire the damages you are pursuing.
If you are successful at trial, you might be able to receive a higher amount than that of the settlement offer.
However, success at court is hard to predict in wrongful death lawsuits.
How Can a Wrongful Death Attorney Help?
Wrongful death cases are complex, particularly if multiple beneficiaries are claiming a portion of a settlement.
It’s wise to have a skillful wrongful death lawyer from the start to ensure all negotiations are just.
Without a lawyer, you may forfeit your capacity to recover the whole compensation you deserve from a lawsuit.
Look for an attorney who has experience in handling wrongful death settlements.
