Call Us!How To Divide a Wrongful Death Settlement
Losing a loved one because of another party’s misconduct is devastating. In the aftermath, you will be dealing with grief as you navigate the wrongful death legal process, which can be a challenge on its own. Even if you receive compensation, you may not know how to divide a wrongful death settlement properly among your family.
At Bachus & Schanker, our attorneys can assist you with every step of wrongful death lawsuits and filing negligence claims. We can also offer the ongoing support you need to address the division of the settlement, so you have one less thing to worry about.
Who Is Entitled To Receive Compensation From a Wrongful Death Settlement?
In Colorado, there are guidelines in place regarding who is entitled to receive compensation from a wrongful death settlement. The settlement must be distributed among all statutory beneficiaries, which typically includes anyone who has suffered an injury because of the death.
Does the Person Who Files a Wrongful Death Claim Receive the Entire Settlement?
No, regardless of who files the claim, all recognized beneficiaries are entitled to receive compensation. It is not seen as the personal recovery of the filer.
How Are Settlement Shares Determined Among Surviving Family Members?
One essential wrongful death FAQ you may have is, “How is a wrongful death settlement divided among family members?” There is a hierarchy of beneficiaries that Colorado law recognizes. If numerous beneficiaries are eligible to receive part of the settlement, the funds are not usually split evenly.
The recipients can decide among themselves how the split should occur, or the court can get involved in the proceedings. The court will hold a hearing to consider a number of factors to determine the division.
This includes:
- Financial dependence: The extent to which a specific beneficiary was dependent on the deceased.
- Household roles: The everyday role the deceased played in the beneficiary’s life.
- Emotional impact: The degree of loss of love, companionship, guidance, and comfort that each party experienced.
The funds will be divided equitably.
How Do Surviving Spouses, Children, and Parents Factor Into Settlement Distribution?
The surviving spouse holds the primary right to collect. If they file within the first year after the death, they can hold the recovery in a trust for themselves and any children. Adult children can claim their portion starting in year two or, with written consent from the spouse, in year one.
In most cases, parents are eligible to collect only if the deceased didn’t leave a spouse, children, or designated beneficiaries behind. Siblings only recover if the deceased was unmarried, had no descendants, and had no surviving parents.
Are Wrongful Death Settlements Divided Equally Among Family Members?
Generally, no. Unless the family members themselves decide on this strategy, the division will take into consideration a number of factors, including the relationship of the deceased with each beneficiary.
How Do Economic and Non-Economic Losses Affect How a Settlement Is Divided?
There are both economic and non-economic damages available in Colorado wrongful death cases. In cases involving significant economic damages, the focus is on offering the largest portions to those who depend on that income to survive.
When dealing with non-economic losses, the court will look at the closeness of the relationship with the deceased more than their financial dependence. Keep in mind that wrongful death settlement caps are $2,125,000 for non-economic damages. The only exception to this is if the death is classified as a felonious killing.
What Happens if Family Members Disagree About How a Wrongful Death Settlement Should Be Divided?
The court may get involved if family members can’t agree. The court will listen to expert testimony, including forensic economists, review individual financial dependencies, and look at the emotional bonds that each claimant had with the deceased.
Does a Court Have To Approve the Division of a Wrongful Death Settlement in Colorado?
Typically, the court must approve the division of the settlement before the funds can be released. This is to ensure there is fairness and no one is being taken advantage of. It’s particularly vital if there are minor or incapacitated beneficiaries.
How Are Minors’ Portions of a Wrongful Death Settlement Handled?
The settlement portion cannot be handed out to a parent or guardian. A judge must approve all of the terms involving the portion. For small settlements (under $10,000), parents or guardians may be allowed to manage the funds under the Colorado Uniform Transfers to Minors Act (UTMA).
However, for larger settlements (over $10,000), parents and guardians aren’t allowed to place the funds into a regular bank account. Instead, the funds must go into a restricted or blocked account, or a court-ordered conservatorship. Some families choose structured settlement annuities to avoid the challenges of a court-blocked bank account.
What Should Families Consider Before Accepting or Dividing a Wrongful Death Settlement?
Before accepting or dividing a wrongful death settlement, it’s essential for families to speak with an attorney. Often, families rush to make decisions because of the stress they are under, but this could mean accepting lower settlements or not dividing the portions in a way that offers the assistance each claimant requires.
How Can a Colorado Wrongful Death Lawyer Help Families Navigate Settlement Distribution?
An attorney can offer invaluable help for family members getting ready to distribute settlement funds. If you feel that you’re being treated unfairly, an attorney can advise you on what your rights are and request a court hearing. Your attorney can also present evidence on your behalf to help justify a larger settlement portion.
At Bachus & Schanker, we know that you’re handling many things at once during this difficult time. Planning a funeral after a loss, worrying about the Colorado wrongful death statute of limitations, and dealing with grief can all be overwhelming. We offer the compassionate assistance you deserve to obtain compensation for what you’ve lost.
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Kyle Bachus & Darin Schanker
Top-rated Colorado-based personal injury lawyers and co-founders of Bachus & Schanker, Kyle Bachus and Darin Schanker, have represented car accident victims and families across Colorado for more than 30 years, earning a reputation as some of the best car accident attorneys for serious injury cases. The firm is structured to handle car accident cases of all types and severities, with a team organized to provide focused support and guidance throughout the process. Kyle and Darin guide victims through the legal process with the support of a dedicated team of car accident specialists and Victim Advocates, ensuring care and advocacy from start to finish so clients can stay focused on healing.
Both Kyle and Darin are nationally recognized for their trial skills and leadership in the legal community. They are members of the Million Dollar Advocates Forum, an exclusive group of attorneys who have achieved million and multi-million-dollar verdicts and settlements, a distinction earned by fewer than 1% of U.S. lawyers. In addition, they have been named Colorado Super Lawyers every year for nearly two decades, included in the Lawdragon 500 Leading Plaintiff Lawyers in America, named Top One Percent by the National Association of Distinguished Counsel, Top 10 Personal Injury Attorneys in Colorado by America’s Best Advocates, and recognized as top civil plaintiff attorneys by The National Trial Lawyers. Beyond the courtroom, they support the Colorado community through the Bachus & Schanker Cares Foundation, which sponsors local nonprofits and initiatives. See Kyle Bachus and Darin Schanker on Super Lawyers.
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#1 Amazon Best Seller in the Legal Industry
Attorney Kyle Bachus knows first-hand how difficult it can be to suddenly lose a loved one in an accident. It’s also devastating when you or a family member suffers severe injuries that forever change your lives. Kyle wrote this book as a resource from his personal experience for families who have suffered a traumatic loss.
A Spanish edition of the book is also available, offering the same support and guidance to Spanish-speaking families.
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