Dividing Assets After a Wrongful Death: A Practical Guide

The death of a loved one is always difficult, but when that death is the result of someone else's negligence or wrongdoing, the emotional toll is compounded by the complex legal and financial challenges that follow. Navigating the division of assets after a wrongful death requires careful planning, legal expertise, and a deep understanding of the process. This guide provides a practical overview to help you understand what to expect.

What Happens to Assets After a Wrongful Death?

When someone dies, their assets—including real estate, bank accounts, investments, and personal possessions—enter the probate process, a court-supervised procedure for managing and distributing the deceased's estate. However, a wrongful death claim significantly alters this process. The wrongful death lawsuit itself is separate from the probate process.

The key difference: A wrongful death lawsuit aims to compensate surviving family members for their losses due to the wrongful death. This compensation is distinct from the deceased's assets. The lawsuit's proceeds are awarded to the beneficiaries specified by state law, often the spouse and children. These funds are not part of the probate estate.

Who Inherits Assets in a Wrongful Death Case?

The inheritance of the deceased's assets (separate from the wrongful death settlement) depends heavily on state laws and the existence of a will.

• Intestate Succession: If the deceased died without a valid will (intestate), state laws dictate how the assets are distributed. This usually prioritizes spouses and children, with specific percentages varying by jurisdiction.

• Testamentary Succession: If a will exists, the deceased's wishes regarding asset distribution are followed. The will should clearly outline beneficiaries and their respective shares. However, even with a will, disputes can arise, requiring court intervention.

• Wrongful Death Settlement: The proceeds from a successful wrongful death lawsuit are typically distributed to the surviving spouse and children, or other designated dependents, according to state law. This distribution is separate from the probate process.

How is the Wrongful Death Settlement Distributed?

The distribution of a wrongful death settlement is guided by state law and often involves:

• Economic Damages: These compensate for the deceased's lost earnings, medical expenses incurred before death, and funeral costs.

• Non-Economic Damages: These address intangible losses such as pain and suffering, loss of companionship, and emotional distress experienced by surviving family members. The amount awarded here can be significant but is subjective and varies greatly.

• Legal Fees: A substantial portion of the settlement usually goes towards legal fees and costs associated with the lawsuit.

What if There's a Will and a Wrongful Death Settlement?

The existence of a will doesn't affect the distribution of the wrongful death settlement. The settlement proceeds are distributed according to state wrongful death statutes, regardless of the will's provisions. The will, however, governs the distribution of the deceased's individual assets through probate.

How Long Does it Take to Settle a Wrongful Death Case?

The timeline for settling a wrongful death case is highly variable and depends on numerous factors, including the complexity of the case, insurance company involvement, and potential appeals. Cases can take anywhere from a few months to several years to resolve.

What are the Common Issues in Dividing Assets After Wrongful Death?

Several challenges can complicate the process of asset division:

• Disputes among heirs: Family disagreements over inheritance and settlement distribution are common.

• Lack of a will: Dying intestate can lead to lengthy and complex probate proceedings.

• Complex estate assets: Assets like businesses or trusts require specialized legal expertise.

• Insurance company delays: Insurance companies might attempt to minimize payouts.

How Can I Protect My Family's Interests?

• Create a will: A well-drafted will ensures your wishes are followed regarding asset distribution.

• Secure legal counsel: An experienced wrongful death attorney can protect your rights and guide you through the legal process.

• Gather relevant documentation: Collect all pertinent financial and legal documents related to the deceased.

• Maintain open communication: Open and honest communication among family members can help mitigate disputes.

This guide offers a general overview. The specifics of dividing assets after a wrongful death are highly dependent on individual circumstances and state laws. Seeking professional legal advice is crucial to ensure your rights are protected and your family's interests are served. Consulting with an estate attorney and a wrongful death lawyer is strongly recommended.