Who Gets the Money in a Wrongful Death Lawsuit?

• March 17, 2025
• The Stoddard Firm
• Wrongful Death

The question weighs heavily after a tragic loss caused by negligence: Who gets the money in a wrongful death lawsuit? This isn’t a simple answer. State laws, the deceased’s family dynamics, and judicial determinations all play a role in how compensation is distributed. For families in Atlanta, GA, facing this complex process, The Stoddard Firm provides guidance to secure rightful justice and financial stability.

What is a Wrongful Death Claim?

A wrongful death claim is a legal action filed when an individual’s death is caused by another party’s negligence, recklessness, or intentional misconduct. The purpose of this lawsuit is to compensate surviving family members for financial and emotional losses resulting from their loved one’s untimely passing.

Common Causes Leading to Wrongful Death Lawsuits

• Car, truck, and motorcycle accidents
• Medical malpractice and surgical errors
• Workplace accidents
• Defective products and unsafe premises
• Violent crimes and intentional harm

Wrongful death cases can stem from many different situations, and each case is unique. Some may involve a distracted driver running a red light, while others could result from a misdiagnosis that leads to a preventable fatal condition.

Eligibility to File a Wrongful Death Claim

Under Georgia Code § 51-4-2, a surviving spouse or, if none, the children of a deceased person may seek compensation for the full value of the decedent’s life in a wrongful death claim. If a surviving spouse initiates the action but dies before its resolution, the claim transfers to the decedent’s children. If brought by children and one passes away, the case continues with the surviving child or children. In cases where minor children bring the claim, a natural guardian, legal guardian, or next friend must represent them.

If no spouse or children exist, the claim may be filed by the deceased’s parents or the representative of their estate. The estate claim can recover damages related to medical bills, funeral expenses, and the pain and suffering the deceased experienced before passing. These claims are vital to ensuring justice for the deceased and financial security for those left behind.

It is also important to act promptly. Georgia imposes a two-year statute of limitations on wrongful death claims, meaning families must file within this timeframe to preserve their right to compensation.

Distribution of Settlement Funds

Under Georgia Code § 51-4-2, any wrongful death recovery is divided equally among the surviving spouse and children per capita, with descendants of deceased children inheriting per stirpes. However, the surviving spouse must receive no less than one-third of the total recovery. If there is no surviving spouse, the recovery is equally divided among the children, with descendants inheriting per stirpes.

The allocation of settlement funds can often lead to disputes, particularly when multiple beneficiaries are involved. While the law provides guidelines, disagreements may arise, necessitating court intervention to ensure fair distribution. In cases where minor children are beneficiaries, the court may impose financial protections, such as structured settlements, to safeguard their future.

Role of the Court in Settlement Allocation

When family members cannot agree on how to divide the settlement, the court may intervene to ensure a fair distribution. Additionally, if the settlement involves minor children, a judge must approve how the funds will be managed to protect the child’s financial interests.

A judge may consider various factors when deciding on distribution, such as the financial dependence of beneficiaries on the deceased and the specific circumstances of the case. This evaluation may also take into account the future financial needs of minor children, the deceased’s contributions to household income, and any pre-existing agreements regarding inheritance or estate planning. In some instances, courts may require the creation of trusts or structured payments to ensure that funds are managed responsibly and fairly among beneficiaries.

Additionally, if the deceased had outstanding debts, creditors may attempt to claim portions of the settlement. However, wrongful death settlements are typically protected from creditors, whereas estate claims may be subject to these claims.

Tax Implications of Wrongful Death Settlements

In most cases, wrongful death compensation is not subject to federal or state income taxes because it is considered compensatory rather than earned income. However, certain portions of a settlement—such as punitive damages or interest—may be taxable. Consulting with a financial advisor or attorney can help families understand their tax obligations.

Taxes can significantly impact the final amount beneficiaries receive. While compensatory damages remain tax-free, punitive damages may be taxed as ordinary income. Proper planning and legal guidance can help protect a family’s financial future.

An addition, structured settlements can provide tax advantages by spreading payments over time rather than receiving a lump sum, which can be beneficial depending on the financial situation of the beneficiaries.

Importance of Legal Representation

Navigating a wrongful death claim without legal guidance can be overwhelming, especially when dealing with insurance companies and opposing legal teams. Working with experienced attorneys ensures that survivors receive the maximum compensation available under Georgia law.

Navigating Complex Legal Processes

Wrongful death claims involve multiple steps, including investigating the case, gathering evidence, filing necessary paperwork, and negotiating settlements. Our firm handles these legal complexities, allowing families to focus on healing.

Furthermore, wrongful death cases often require expert testimony to prove liability and damages. We work with medical professionals, accident reconstruction experts, and financial analysts to build the strongest possible case for our clients.

Maximizing Compensation for Beneficiaries

Insurance companies often try to minimize payouts in wrongful death cases. Our legal team fights aggressively to secure full compensation, covering medical expenses, lost wages, pain and suffering, and loss of companionship.

Families may be entitled to damages beyond economic losses, including compensation for emotional distress and loss of consortium. Having a skilled attorney on your side can make a significant difference in the outcome of your case.

Non-economic damages—such as pain and suffering—can be challenging to quantify. Our attorneys work diligently to ensure these damages are fully considered during settlement negotiations or trial.

Contact Our Experienced Wrongful Death Attorneys Today

Understanding who gets the money in a wrongful death lawsuit is crucial during a grieving period. The Stoddard Firm’s Atlanta attorneys clarify these complexities, ensuring rightful beneficiaries receive compensation. We meticulously navigate legal procedures, advocating for your family’s financial security and justice.

Contact us at 470-467-2200 for a free consultation.