How are Wrongful Death Settlements Paid Out?

A wrongful death lawsuit is a legal route for the surviving family members of a person who was killed in a fatal incident caused by actions considered reckless or negligent.

In the state of Kentucky, wrongful death claims are paid out to the surviving members of the deceased, with the distribution of money based on the order of priority under state laws. This page will provide a detailed breakdown of wrongful death settlements and how they are paid out.

Types of Damages in a Wrongful Death Claim

In a civil case, damages refer to the monetary compensation awarded to a party who has suffered a loss due to the negligent or wrongful actions of another party. In a wrongful death case, the surviving family can seek compensation for the following damages:

• Medical and funeral expenses;
• Loss of income, benefits, and financial support;
• Loss of companionship;
• Pain and suffering; and
• Punitive damages (in cases with extreme conduct or gross negligence).

If you are unsure what damages you can seek compensation for after the loss of your partner or family member, contact Morrin Law for a free case evaluation. We can help explain damages and how we can fight to win you the compensation your family deserves.

Factors Impacting a Settlement

A wrongful death settlement’s value can vary depending on the surrounding circumstances of the case. Even with all the damages outlined above, the following factors may impact the settlement awarded in a wrongful death lawsuit:

• The age of the deceased;
• The overall health of the deceased;
• The degree of liability;
• The insurance costs involved in the case;
• Outstanding medical bills, funeral costs, and other debts; and
• The attorney representing the wrongful death case.

Call the office of Morrin Law today to consult with one of our wrongful death attorneys in Kentucky. We can review your rights and determine what your best options are.

Who Can Claim in Kentucky

With wrongful death lawsuits, there is an important distinction to make between who can file the claim and who will receive any awarded compensation. Kentucky law provides that only the personal representative can file a lawsuit for wrongful death. This is an individual who has been selected and ordered in the deceased’s will. If there is no will available due to the unexpected death, then the court will appoint someone to be the personal representative, usually a person not in the immediate family.

While the personal representative handles the civil matters, it is the surviving family members who will receive any awarded compensation. However, there are also strict rules about the distribution of a settlement.

Kentucky’s Law for Order of Distribution

KRS 411.130 is titled Action for Wrongful Death. The legal statute states the following:

“The amount recovered, less funeral expenses and the cost of administration and costs of recovery including attorney fees, not included in the recovery from the defendant, shall be for the benefit of and go to the kindred of the deceased in the following order:”

1. If the deceased leaves a spouse and no children or descendants – Then the entire settlement is awarded to the surviving widow or husband.
2. If the deceased leaves a spouse and a child or children – Then the settlement is divided between the widow or husband and the child(ren).
3. If the deceased leaves no spouse or no children – Then the entire settlement is awarded to the surviving parent(s) of the deceased.
4. If the deceased leaves no spouse, children, or surviving parents – Then the entire settlement becomes part of the estate, and after any debts are paid, shall go to the kindred more remote than those listed above.

Pay Out Options for a Wrongful Death Settlement

If a settlement has been reached in the case—whether through negotiations or through trial, the agreed upon compensation amount can either be paid through a lump sum or structured settlements.

• Lump Sum Settlement – Many cases end with the plaintiff receiving the full awarded compensation all at once. A lump sum is a one-time payment that covers all economic and non-economic damages to fully satisfy the defendant’s financial obligations.
• Structured Settlement – The other option for receiving the settlement money is through structured payouts. This is where the surviving family members receive payments over an extended timeframe. The amount and time for receiving a structured payout would depend on the agreement made by both parties.

Tax Implications

Another important question that arises in a wrongful death lawsuit is whether wrongful death settlements are taxable. The Internal Revenue Service (IRS) typically considers the settlement as compensatory damage, meaning the awarded money is not considered income due to the family suffering those economic and non-economic losses. If the case involves punitive damages, however, then that could end up getting taxes, along with the administrative fees.

If you have specific questions about taxed settlements, contact the wrongful death attorneys with Morrin Law.

Why Should You Hire a Wrongful Death Lawyer?

There are multiple benefits to working with a lawyer experienced in wrongful death cases. These civil cases are often extremely complex, causing difficulties for the personal representative to navigate on their own. A lawyer can assess the damages accrued in the wrongful death incident, collect evidence that establishes the other party’s liability through negligent actions, and help negotiate for the best possible outcome for the surviving family. If a settlement has been agreed upon, a lawyer can help you understand Kentucky’s laws on distribution, as well as decide if a lump sum or structured payments are in your best interest.

Contact Morrin Law office today at (859) 695-3631 and we can give you a free evaluation of your case. While you focus on recovering from this tragic incident, we will do everything we can to get you the compensation you and your family deserve.