How Is a Wrongful Death Settlement Divided?

Understanding how a wrongful death settlement is divided can be crucial for ensuring that the funds are distributed fairly among the surviving family members.

Dividing a wrongful death settlement can be a complicated and emotional process. Nebraska law dictates how compensation is distributed among surviving family members, which can depend on factors such as the deceased’s marital status, children, and other relatives. If you need assistance navigating a wrongful death claim, reach out to Knowles Law Firm for guidance and legal support.

Understanding Wrongful Death Settlements

A wrongful death settlement is a payment made to the surviving family members of a person who has died due to the negligence or wrongdoing of another individual or entity. These settlements are designed to provide financial support to those who have been left behind, helping to cover expenses such as medical bills, funeral and burial costs, and lost income.

Wrongful death settlements can be complex and emotionally charged, making it essential for families to understand their rights and options.

Eligibility for a Wrongful Death Claim

To be eligible for a wrongful death claim, the deceased person’s surviving family members must meet certain criteria. Typically, this includes the surviving spouse, children, and parents of the deceased. In some cases, other relatives or dependents may also be eligible to file a claim.

The specific eligibility requirements vary by state, so it’s essential to consult with a wrongful death attorney to determine who may be eligible to file a claim.

• CAR ACCIDENTS
• WRONGFUL DEATH

Wrongful death is the tragedy of losing a beloved family member in an avoidable accident, such as a car crash caused by a distracted driver. If Nebraska’s wrongful death laws apply to your loved one’s passing, you and your family may be entitled to financial compensation from the at-fault party or parties. A successful claim could lead to financial reimbursement for expenses such as funeral and burial costs, medical bills, and mental anguish. How a settlement is divided, however, depends on the state’s laws for interstate succession.

How Are Wrongful Death Settlements Paid Out?

The two basic payout options in a wrongful death lawsuit are a lump-sum settlement and structured settlement. In a lump-sum settlement, the recipient will receive the full amount of the settlement or verdict at once, in a single check from the insurance company. Surviving family members will receive the full payout of their economic and noneconomic losses, allowing them to pay their debts upfront. These payout options are particularly important for those who were financially dependent on the deceased, as they can impact the immediate and long-term financial stability of the surviving family members.

In a structured settlement agreement, recipients will receive parts of the settlement at a time for an extended period. This can help a family pay for larger financial debts over time by guaranteeing a consistent stream of income. Structured settlements have less flexibility than lump-sum settlements. The right type of payout for a family will depend on the specific situation.

Who Can File for Wrongful Death? The Deceased Person’s Surviving Spouse, Children, and Parents

The deceased person’s surviving spouse, children, and parents are typically the primary beneficiaries of a wrongful death settlement. The surviving spouse may be entitled to compensation for lost income, medical expenses, and other damages. Generally, the surviving spouse has exclusive rights to file for the first year.

Children may be entitled to compensation for lost parental guidance, support, and companionship. Parents may be entitled to compensation for lost financial support and emotional distress. The specific damages available to each beneficiary will depend on the circumstances of the case and the applicable state laws.

What Compensation Can Surviving Family Receive? The Deceased Person’s Surviving Spouse, Children and Parents

Any wrongful death settlement or verdict awarded in Nebraska will be divided based on the state’s rules for intestate succession. Nebraska has multiple laws that apply to dividing wrongful death awards. Nebraska Revised Statutes Section 30-2302 states that the first person who will receive a portion of the settlement will be the deceased person’s surviving spouse. The surviving spouse will have an obligation to share the proceeds with any surviving children or parents of the decedent. In wrongful death cases, the distribution of settlements can be complex and varies depending on the specific circumstances and state laws.

If there are no surviving children, but there are surviving parents, the spouse will have to share the first $100,000 with the parents plus 50% of the balance of the intestate estate. If there are surviving children, the children will receive the first $100,000 instead, but only if the surviving children are the issue of the surviving spouse as well. If the surviving children are not the issue of the surviving spouse, the children will receive 50% of the intestate estate. If no surviving children or parents exist, the spouse will receive the entire intestate estate.

Others Entitled to a Portion of a Wrongful Death Settlement

According to Section 30-2303 of the law, with no surviving spouse to receive the first portion of a wrongful death settlement, the full amount will go directly to any surviving children of the decedent instead. All surviving children will split the settlement equally if they have the same degree of kinship to the deceased person. Otherwise, a larger portion of the settlement will go to the child with the closer relationship to the decedent. If no surviving spouse or children exist, the decedent’s parent or parents will share the wrongful death settlement equally. Navigating wrongful death claims can be challenging, and it is essential to have experienced legal representation to ensure a fair distribution of the settlement.

In a case where there is no surviving spouse, child or parent, the deceased person’s siblings will receive the wrongful death settlement. If none of these survivors exist, the surviving grandparents of the decedent will split the wrongful death settlement equally or according to kinship to the decedent.

Finally, if the decedent has no surviving spouse, child, parent, sibling, grandparent or issue of the grandparent, the entire settlement will pass to the deceased person’s next of kin. The only exception is if two or more collateral kin exist but claim the settlement through different ancestors. In this case, the kin with the closest ancestor will receive preference.

Dividing a wrongful death settlement in Nebraska can be extremely complicated. For assistance with every step of your claim, including settlement division, contact a wrongful death attorney.

Tax Implications and Distribution

Wrongful death settlements are generally tax-free, but there may be exceptions. For example, if the settlement includes compensation for lost wages, this portion may be subject to income tax. Punitive damages, which are intended to punish the defendant for their wrongdoing, are typically taxable.

When distributing a wrongful death settlement, it’s essential to consider the tax implications and ensure that each beneficiary receives their fair share. A wrongful death attorney can help navigate the tax implications and ensure that the settlement is distributed fairly and in accordance with state laws.

How a Wrongful Death Settlement Is Divided – Knowles Law Firm

Losing a loved one due to someone else’s negligence is devastating, and navigating the legal and financial aftermath can be overwhelming. Wrongful death settlements are meant to provide financial relief for surviving family members, but dividing the compensation can be complex. Nebraska law determines how settlements are allocated based on the deceased’s surviving relatives, making it crucial to understand your rights and options.

At Knowles Law Firm, we help families through these difficult times by guiding them through the legal process and ensuring they receive their fair share of a wrongful death settlement. With decades of experience handling wrongful death claims in Nebraska, we are committed to fighting for justice on your behalf. Call (402) 431-9000 or fill out our contact form.