How Are Wrongful Death Settlements Paid?

How Are Wrongful Death Settlements Paid?

Losing someone you love is one of the hardest things anyone can go through. Your world feels upside down. On top of the sadness, you might have a lot of questions about money and the future. This can be very stressful. We want to help you understand one part of this journey: how wrongful death settlements are paid.

Think of this as a simple guide. We will use easy words and take it one step at a time. You are not alone in this. The team at Abels & Annes, P.C. is here to help families in Chicago who are going through this. We offer free consultations 24/7, and you don’t pay us anything unless you win. Call us anytime at (312) 924-7575.

How Wrongful Death Settlements Are Paid: Key Points

• Settlements are typically paid by the at-fault party's insurance company.
• Money is distributed to the surviving spouse and next of kin based on their degree of dependency.
• A judge must approve the settlement and its distribution to ensure fairness.
• The funds are first sent to a lawyer's trust account to pay case expenses, liens, and legal fees before the net amount is paid to the family.

What Is a Wrongful Death Case?

First, let's talk about what "wrongful death" means. It is a term used when a person dies because someone else was not careful. It was not just a random accident. It was something that could have been prevented.

Here are some examples of what this could look like:

• A driver was texting and caused a fatal car crash.
• A truck driver was too tired and made a mistake that led to a deadly truck accident.
• A person was walking in a crosswalk and was hit by a car that ran a red light.
• A property owner did not fix a broken stair, and someone fell and suffered a fatal injury.
• A bicyclist was hit by a garbage truck, like in a case where we helped a family get a $6,000,000 settlement.

When something like this happens, the family of the person who died can file a wrongful death lawsuit. This is a way to hold the person or company that was careless responsible. It is also a way to get financial help for the family that is left behind.

The job of a wrongful death attorney is to prove that the other party was careless and that their carelessness caused your loved one's death. This is not something you should ever have to do on your own. A lawyer does all the hard work for you.

Who Gets the Money from a Wrongful Death Settlement?

This is a very important question. When a settlement is reached, the money does not just go to one person. Illinois has a special law that explains how the money should be shared. This law is called the Illinois Wrongful Death Act.

The law says the money is for the "surviving spouse and next of kin."

• Surviving Spouse: This is the husband or wife of the person who died.
• Next of Kin: These are usually the children of the person who died. If there is no spouse or children, it could be parents or siblings.

A judge decides how the money is split. The judge looks at how much each family member depended on the person who died. This is called "dependency."

Dependency is not just about money. Of course, if your loved one paid the bills, that is a big financial loss. But the law knows that loss is much more than just money. A judge will also look at:

• Loss of Companionship: You have lost the love and friendship of your family member.
• Loss of Guidance: A child has lost a parent's advice and teaching.
• Grief and Sorrow: The emotional pain the family is going through is also considered.

In addition, the Illinois Survival Act (755 ILCS 5/27-6) allows the estate of the deceased person to recover for the damages the deceased themselves suffered before their death.

This typically includes:

• The deceased's conscious pain and suffering.
• Medical expenses incurred before death.
• Lost earnings between the time of injury and death.

Proceeds from a survival act claim go to the deceased's estate, which distributes them according to the deceased's will. If the deceased died without a will, Illinois’s intestacy laws will determine who will receive the proceeds. This can sometimes mean the money goes to a different set of people than those who receive the wrongful death funds.

In almost every fatal injury case, lawyers file both a wrongful death claim and a survival act claim.

An experienced lawyer at Abels & Annes knows how to show the court the full picture of your family’s loss. We talk to family members and friends to understand what your loved one meant to each person. This helps us make sure the settlement money is divided in a way that is fair to everyone in the family. It is a serious job, and we take it very seriously.

Where Does the Settlement Money Come From?

Many families worry that they will be taking money from another person. This is usually not how it works. The money for a wrongful death settlement almost always comes from an insurance company.

Think about your insurance. You have car insurance in case you are in an accident. Businesses have insurance in case a customer gets hurt. This insurance pays for a settlement.

Here are the most common sources of settlement money:

• Car Insurance: In a fatal car, truck, or motorcycle accident, the at-fault driver's auto insurance policy is the main source of payment.
• Commercial Liability Insurance: If the death happened because of a careless business, like a slip and fall in a store, the business's insurance pays. This also applies to trucking companies, whose insurance policies are often very large. The Federal Motor Carrier Safety Administration (FMCSA) has strict insurance rules for trucking companies.
• Homeowner's Insurance: If an accident happens on someone's private property, their homeowner's insurance might cover it.

Insurance companies are large, powerful businesses. Their main goal is to make money. This means they often try to pay as little as possible for claims. They might try to blame your loved one for the accident or say your family's loss is not worth very much.

This is why you need a strong lawyer to fight for you. The attorneys at Abels & Annes have been fighting insurance companies for years. We know their tricks. We have won millions of dollars for our clients because we do not back down. We prepare every case as if it is going to trial, which shows the insurance company that we are serious. This is how we get them to pay a fair settlement.

The Steps to Getting a Wrongful Death Settlement Paid

The process of getting a settlement can seem long, but your lawyer will handle every step. Your job is to focus on your family and healing. Here is a simple look at what your attorney will do for you.

Step 1: You Call a Lawyer for a Free Consultation

Everything starts with a phone call. You can call Abels & Annes at (312) 924-7575 any time, day or night. The consultation is always free. You will talk to a caring lawyer who will listen to your story. We will ask some questions to understand what happened. Then, we will tell you how we can help. If you decide to hire us, you sign some papers. You pay no fee unless we win your case.

Step 2: Your Lawyer Gathers All the Proof

This is a very important part of the case. Your lawyer will start working right away to collect evidence. This includes:

• Getting the official police or accident report.
• Taking pictures of the accident scene, cars, and anything else that is important.
• Finding and talking to anyone who saw what happened.
• Looking for security camera video from nearby buildings.
• Hiring experts, if needed, to explain how the accident happened.

Your lawyer's investigation is designed to prove the other party was at fault.

Step 3: Your Lawyer Sends a Demand to the Insurance Company

Once your lawyer has all the proof and understands your family's full loss, they will put together a settlement demand package. This is a very detailed file that includes the evidence and a letter. The letter explains why the other party is responsible and asks for a specific amount of money to settle the case.

Step 4: Your Lawyer Fights for a Fair Settlement

The insurance company will almost never agree to the first demand. They will respond with a much lower offer. This is normal. Your lawyer will then start negotiating. This is like a back-and-forth conversation. Your lawyer will use the evidence and the law to argue for why your family deserves the full amount. The lawyers at Abels & Annes are skilled fighters. We are proud members of the Million Dollar and Multi-Million Dollar Advocates Forum, which means we have a history of winning large settlements for our clients.

Step 5: A Settlement Is Reached

Most wrongful death cases end with a settlement agreement. This happens when your lawyer and the insurance company agree on a fair amount of money. Your lawyer will talk to you about the offer. The final choice to accept a settlement is always yours. Your attorney will give you advice, but you are in control. Once you agree, it is put into a legal document.

Step 6: A Judge Approves the Settlement

In a wrongful death case, a judge must approve the settlement. This is to make sure everything is fair, especially if there are children who will receive money. The court wants to protect the children's best interests. Your lawyer will handle all the paperwork and court appearances for this. The local court rules have specific steps that must be followed, and your attorney will manage this entire process.

How the Wrongful Death Money Is Finally Paid to the Family

After the judge approves the settlement, the insurance company sends the money. But it does not go directly to you. Here is how it works.

The Lawyer's Trust Account

The settlement check is sent to your lawyer. The lawyer puts it into a special bank account called a trust account. This account is separate from the law firm's money. It is protected by law.

Paying the Bills

From the trust account, your lawyer will pay any bills related to the case. This includes:

• Case Costs: This is money the law firm spent on your case, like fees for getting reports or hiring experts.
• Medical Bills: Any final hospital or doctor bills for your loved one are paid. There are laws, like the Illinois Health Care Services Lien Act, that require these bills to be paid from a settlement. Your lawyer handles this so you do not have to.
• Attorney's Fees: Your lawyer's fee is paid from the settlement. This is the percentage you agreed to when you hired them. Remember, at Abels & Annes, there is no fee unless you win.

Your lawyer managing these bills is a huge help. It takes the stress off you so you do not have to deal with hospitals and bill collectors.

The Money Goes to the Family

After all the bills and fees are paid, the rest of the money belongs to the family. This is the net settlement. The money is then divided among the family members as the judge ordered.

This can be done in two main ways:

1. Lump Sum Payment: Each person gets their share of the money all at once in a single check.
2. Structured Settlement: This is often used for children. Instead of getting a lot of money at once, the money is put into a special investment that pays them over time. For example, they might get payments for college or a payment when they turn 25. This protects the money and makes sure it lasts.

Your lawyer will help your family understand these options and decide what is best for your situation.

The Clock is Ticking on Your Right to File a Wrongful Death Claim

It is hard to think about legal matters when you are grieving. But it is very important to call a lawyer as soon as you can.

In Illinois, there is a time limit to file a wrongful death lawsuit. This is called the statute of limitations. This law can be confusing, but what you need to know is that the deadline is short. If you miss it, you lose your right to seek justice forever. You can learn more about these time limits from the official Illinois state statutes.

There is another reason to act fast. Evidence disappears.

• Security camera footage is often erased after a few weeks.
• Witnesses move away or their memories fade.
• The accident scene can change.

The sooner you call a lawyer, the sooner they can start collecting the proof your family needs to win your case. According to the National Safety Council, the financial costs of a death can be huge, and a strong case helps secure your family's future.

Losing a loved one is a painful experience, and finding support can be helpful. Organizations like GriefShare offer support groups that can provide comfort during this difficult time.

Frequently Asked Questions About Wrongful Death Settlements

Is the money from a wrongful death settlement taxable?

Generally, no. According to the IRS, compensation for personal injuries or physical sickness is not taxable. This protection usually extends to wrongful death settlements, compensating for the losses stemming from the death.

However, if a portion of the settlement pays for lost wages your loved one would have earned (often part of a survival act claim) or for punitive damages, the IRS may tax that portion. Consult a qualified tax professional about your specific settlement.

How long does it take to resolve a wrongful death case?

There is no set timeline, as each case is unique. A complex case that involves multiple defendants, disputed facts, or requires a full lawsuit and trial can take longer than a clear-cut case with a reasonable insurer.

Your attorney can give you a better estimate once they have investigated the specifics of your case.

What if the person who caused the death has no insurance?

This is a challenging situation, but there may still be options. Your attorney will investigate whether the at-fault person has personal assets that could be used to satisfy a judgment.

Additionally, you or your deceased loved one may have Uninsured/Underinsured Motorist (UM/UIM) coverage on your own auto insurance policy. This coverage is designed to protect you in situations where the at-fault party has little or no insurance.Let Our Wrongful Death Attorneys Fight for You

We know this is a lot to take in. The most important thing to remember is that you do not have to figure this out by yourself. The caring wrongful death lawyers at Abels & Annes, P.C. are here to lift this burden from your shoulders. We will handle every part of the legal process so you can focus on what matters most: your family.

We have been helping families in Chicago for many years. We have won millions of dollars for our clients, and we are ready to fight for you. We speak English, Spanish, and Polish.

Call us today for a free, no-pressure consultation. We are here for you 24 hours a day, 7 days a week.