Beyond the emotional anguish after one’s wrongful death, surviving family members often face financial burdens that can feel overwhelming. In many cases, these individuals turn to a wrongful death settlement for some semblance of justice and relief. 

At Craig Swapp & Associates, our wrongful death lawyer in Idaho understands how complex and deeply personal wrongful death cases can be, especially when grieving families must figure out how to divide a wrongful death settlement among multiple potential beneficiaries. 

If you’re considering legal action or have already started the process, below is a comprehensive explanation of how wrongful death settlements are structured, who can claim them, and how they’re typically divided, with particular attention to the intricacies of Idaho wrongful death law.

Understanding Wrongful Death Settlements

A wrongful death settlement is a negotiated agreement that results from a civil claim filed by the surviving family members (or an appointed representative of the deceased’s estate) after a loved one’s death. 

These settlements are intended to compensate eligible beneficiaries for the damages stemming from a preventable death, such as:

  • Medical expenses incurred before the victim’s passing
  • Funeral and burial costs
  • Loss of the deceased’s income and future financial support
  • Loss of companionship, care, guidance, and emotional support

Because each state has specific statutes defining who can receive compensation and how those funds should be allocated, it’s critical to work with wrongful death lawyers who know the intricacies of state laws and can guide you on the best path forward.

How Recovering Damages for Wrongful Death Works

When a loved one has passed away due to another party’s negligent or wrongful actions, families can pursue a wrongful death settlement to obtain financial relief and a sense of justice.

1. Gather Evidence and Documentation

Building a strong claim often begins with compiling comprehensive evidence. This may include accident reports, medical records, witness statements, financial documents, and more.  Such information is critical for establishing the foundation of an Idaho wrongful death claim, particularly when demonstrating the financial and emotional impact on survivors.

2. Consult a Wrongful Death Lawyer

Enlisting experienced wrongful death lawyers is crucial. A knowledgeable wrongful death lawyer can:

  • Clarify Eligibility: Identify who qualifies for compensation and how to divide a wrongful death settlement among beneficiaries.
  • Calculate Damages: Assess both economic (medical bills, lost earnings) and non-economic (pain and suffering, loss of companionship) damages.

3. File a Wrongful Death Claim

Once your attorney has determined that your case meets the statutory requirements, they will file a wrongful death lawsuit on behalf of the estate or the eligible beneficiaries. 

This involves:

  • Drafting a Complaint: Outlining the defendant’s negligence or misconduct.
  • Serving the Defendant: Officially notifying the party at fault.
  • Entering Negotiations: Working toward a settlement with insurers or defense counsel.

4. Engage in Negotiations or Litigation

Many wrongful death claims are resolved through negotiated settlements. If the at-fault party’s insurance company offers a fair sum, you may avoid a drawn-out court case. However, if negotiations fail, your attorney may proceed to trial, where a judge or jury decides the outcome – and potentially the allocation of damages.

5. Distribute the Settlement

Once a settlement or verdict is secured, the next step is determining how to divide a wrongful death settlement among beneficiaries.

Who Can Receive a Wrongful Death Settlement?

When determining how to divide a wrongful death settlement, you must first establish the individuals – or “beneficiaries” – who are entitled to a share of any recovered damages. 

Although statutes vary from state to state, beneficiaries generally include:

  • Spouse: In many instances, the surviving spouse receives a significant portion of the settlement due to their direct financial and emotional losses.
  • Children: Minor and adult children often qualify for compensation because they’ve lost parental guidance and support.
  • Parents: If the deceased had no surviving spouse or children, or if parents have their own claim (such as for the loss of an unmarried adult child), parents can be beneficiaries.
  • Others: Some states allow certain extended family members or financially dependent individuals to qualify under specific conditions.

Under Idaho wrongful death laws, a wrongful death action can typically be brought by the heirs, personal representative, or designated party of the deceased’s estate. This law identifies spouses, children, stepchildren, and sometimes other dependent relatives as potential beneficiaries. Consulting a wrongful death lawyer in Idaho will help clarify eligibility and ensure that all rightful claimants are considered.

Factors Affecting the Distribution of a Wrongful Death Settlement

Because wrongful death laws differ among states, the manner in which a wrongful death settlement is divided can vary widely. 

Below are some common factors that play a role in determining distribution:

  • Degree of Financial Dependence: Courts often look at how dependent each beneficiary was on the deceased’s income and benefits. A surviving spouse or dependent children may receive a larger share if they relied heavily on the deceased’s earnings and benefits.
  • Age and Circumstances of Beneficiaries: Minor children might receive larger portions because of their need for long-term financial support. Similarly, a spouse nearing retirement age may receive more than a younger spouse capable of returning to or remaining in the workforce.
  • Separate Settlements for Different Damages: A settlement might be split into compensatory categories, such as economic damages (medical bills, lost wages) and non-economic damages (pain, suffering, emotional distress). Sometimes, courts or negotiations allocate these damages differently among beneficiaries.
  • Existence of a Will or Estate Plan: While a wrongful death claim is separate from the deceased’s estate plan, the will’s provisions can still offer insight into the deceased’s intended distribution of their assets, which can affect negotiations or a judge’s decisions.

Calculating the Amount of a Wrongful Death Settlement

In an Idaho wrongful death action, lawyers carefully compile receipts, invoices, employment records, and expert testimony (from economists or financial analysts) to calculate the total economic impact. Economic damages refer to the measurable, monetary losses tied to the wrongful death. These calculations typically include medical expenses, funeral and burial costs, lost income and benefits, and household services.

Calculating non-economic damages proves more challenging because it involves intangible losses, such as loss of companionship, pain and suffering of the deceased,  and emotional distress of survivors. Wrongful death laws do not always provide a precise formula for non-economic damages. Instead, these values are often determined through negotiations or at trial, guided by prior case precedents, testimony from mental health professionals, and the severity of survivors’ losses.

Each jurisdiction sets a statute of limitations, a legal deadline by which your wrongful death claim must be filed. In Idaho, for example, most wrongful death lawsuits must be initiated within 2 years of the date of death. Missing this deadline can bar you from any recovery. Additionally, states may impose damage caps on certain types of awards, especially non-economic damages, influencing the final settlement amount.

How Beneficiaries Are Paid for Settlement

Following an approved settlement or court judgment, beneficiaries often face a choice between receiving their share as:

  • Lump-Sum Payment: The entire allocated amount is paid at once. This approach is straightforward, but beneficiaries may wish to consult a financial advisor to manage such a large influx of funds responsibly.
  • Structured Settlement: Funds are paid over time (monthly, annually, or in another interval). This method can be especially beneficial for minor children or individuals needing a steady stream of future income, ensuring the money is not depleted prematurely.

In other states, when minors are beneficiaries, a court may require that funds be placed in trust accounts or other protected arrangements until they reach adulthood. This protects the child’s share and ensures it’s used solely for their welfare.

How to Distribute a Wrongful Death Settlement

Determining how to divide a wrongful death settlement can be complex, as it often involves both legal and emotional considerations. Here is a general overview of the process:

  • Identify All Potential Beneficiaries: Work with a wrongful death lawyer in Idaho (or the state where the claim is filed) to ensure no beneficiary is overlooked. Proper identification of beneficiaries prevents disputes and ensures that everyone with a valid claim is part of the process.
  • Consult Relevant State Statutes: Because each state has specific rules on Idaho wrongful death claims – and other regions have their own statutes – your lawyer will analyze the laws that govern distribution in the state where the wrongful death occurred.
  • Value Each Category of Damages: Economic damages, such as lost wages and medical bills, must be accurately calculated. Non-economic damages, including emotional suffering, companionship loss, and consortium, may require expert opinions or formulas established by case law.
  • Attempt an Equitable Agreement: In many cases, beneficiaries collaborate with legal counsel to reach a fair agreement outside of court. This approach is typically more cost-effective and less time-consuming than a drawn-out trial.
  • Court Approval: If minors or legally incompetent individuals are beneficiaries, courts generally require oversight to protect their interests. A judge may need to review and approve the settlement distribution to ensure fairness and legal compliance.
  • Disbursement of Funds: Once an agreement or judgment is reached, the funds are distributed according to the agreed-upon or court-approved allocation. Trusts, annuities, or structured settlements may be created for minors or to preserve funds for future needs.

Preventing or Resolving Disputes Among Beneficiaries

Inevitably, high-stress situations and significant sums of money can lead to disagreements among family members about how to divide a wrongful death settlement. 

Here are a few tips for preventing or resolving such disputes:

Open Communication

  • Encourage honest, transparent discussions among all potential beneficiaries regarding their needs, intentions, and goals.
  • Where possible, host family meetings facilitated by your wrongful death attorney.

Detailed Valuation of Losses

  • Having a clear breakdown of economic and non-economic damages helps illustrate why certain beneficiaries might be entitled to more compensation than others.
  • Utilizing financial experts or life-care planners can substantiate claims of future medical or educational needs.

Mediation Services

  • When disagreements seem too big to resolve in casual discussions, many attorneys suggest professional mediation.
  • A trained mediator can guide conversations and propose fair compromises without the costs and delays of courtroom battles.

Court Intervention

  • As a last resort, the dispute can be presented to a judge, who will apply state law to allocate the settlement.
  • While this offers a definitive resolution, it can also be time-consuming and emotionally taxing, so many families prefer out-of-court settlements if possible.

Legal Assistance in Dividing a Wrongful Death Settlement

An attorney’s guidance is invaluable during wrongful death proceedings. 

Beyond helping determine the rightful beneficiaries, skilled counsel can:

  • Gather and present evidence of liability
  • Calculate current and future financial losses
  • Assess pain and suffering, loss of consortium, and other non-economic damages
  • Negotiate settlements to avoid prolonged legal battles
  • Handle any disputes that arise among beneficiaries

Navigating a wrongful death claim is a delicate journey, and the manner in which the final funds are divided should reflect the unique losses each beneficiary has endured. 

At Craig Swapp & Associates, we pride ourselves on helping families seek the compensation they deserve while respecting the memory and legacy of their lost loved one. We understand that no settlement can truly make up for the heartbreak of losing a family member, but it can provide financial stability, support for long-term needs, and a sense of closure. 

If you have questions about your particular circumstances, want more information about wrongful death laws, or need help understanding the next steps, do not hesitate to call our office today at 800-404-9000 or fill out our contact form for a free consultation.

Written By: Ryan Swapp     Legal Review By: Craig Swapp