When a wrongful death case results in a settlement or verdict, families often have another important question: Who decides how the money is divided?
There is no single rule applicable to every wrongful death lawsuit. The answer can depend on state law, who qualifies as a beneficiary, the nature of each person’s losses, whether the case settles or goes to trial, and whether family members agree about the proposed distribution.
Wrongful death money is not necessarily divided equally among every surviving relative. The legal relationship to the deceased person and the individual losses suffered by eligible beneficiaries can be important.
Who May Be Entitled to the Recovery?
The first step is determining who qualifies as a wrongful death beneficiary. State statutes identify the people legally entitled to pursue or benefit from these claims.
Depending on the jurisdiction, eligible beneficiaries may include a surviving spouse, children, parents, or other people specifically recognized by statute. In some states, a representative files the lawsuit even though the recovery ultimately benefits designated family members.
Being related to the deceased person does not automatically establish a right to part of a wrongful death recovery. The governing statute controls.
Family structures can also make allocation more complicated. A deceased person might leave a current spouse, children from a prior marriage, minor children, adult children, or living parents. Their respective rights should be determined under applicable law rather than assumptions about inheritance.
Is Wrongful Death Money Divided Equally?
Not necessarily. A wrongful death settlement is not simply an estate being divided equally among heirs.
Wrongful death damages can compensate individual beneficiaries for losses arising from their particular relationships with the deceased person. Those losses can differ substantially.
A minor child dependent upon a deceased parent for financial support, care, and guidance may have losses different from those of an independent adult child. A surviving spouse may have lost financial support, household services, companionship, and the benefits of a long-term marital relationship.
Economic losses and personal losses can therefore affect allocation. An automatic equal division may not accurately reflect the legally recognized losses of each beneficiary.
Who Makes the Final Decision?
When a case settles, beneficiaries may be able to agree on allocation of the proceeds. The exact process depends on the jurisdiction, circumstances, and whether minors or others requiring special legal protection are involved.
A court may need to approve some settlements. Judicial review can be especially important when money is being recovered for a child.
If family members disagree, allocation may require negotiation, mediation, or court involvement. Attorneys must also be attentive to potential conflicts when representing several family members whose financial interests may differ.
If a case reaches trial, the procedure can be different. Depending on applicable law, a jury or court may determine damages attributable to particular beneficiaries.
Questions about resolving the underlying case are also discussed on our going to court in a wrongful death page.
Settlement Money and Estate Money Can Be Different
Wrongful death claims should also be distinguished from survival claims. Although both can arise from the same fatal event, they involve different legal interests.
Wrongful death claims generally address losses suffered by eligible family members. A survival claim generally preserves certain claims belonging to the deceased person before death.
Because those claims differ, the money recovered through them may be distributed differently. Survival proceeds may pass through the estate under applicable law, while wrongful death proceeds may belong to statutory beneficiaries.
This distinction can become particularly important when several relatives have different legal rights.
Families should understand these allocation issues before a settlement becomes final. A wrongful death lawyer can identify eligible beneficiaries, determine which law controls, recognize potential conflicts, and help address the distribution of compensation fairly and lawfully.
Our Texas wrongful death statute discussion also explains how Texas law identifies family members who may bring wrongful death claims when Texas law governs.
