Trial Attorney Blog
Losing a loved one due to another party’s negligence or misconduct is devastating.
While no amount of money can truly compensate for the loss, Georgia law allows families to seek financial relief through a wrongful death lawsuit.
These claims aim to provide monetary compensation for lost income, emotional suffering, and other damages caused by the wrongful death.
Understanding how wrongful death settlements are paid out is crucial for families navigating this difficult process.
This guide explores Georgia’s wrongful death laws, who can receive compensation, how settlements are distributed, and the legal steps involved in securing a fair payout.
For expert legal assistance in wrongful death cases in Atlanta, consult Finch McCranie LLP, a highly experienced law firm that has been helping Georgia families secure justice for over 50 years.
Understanding Wrongful Death Settlements in Georgia
A wrongful death settlement is a financial agreement between the defendant (the party responsible for the death) and the plaintiff (the deceased’s family or estate).
Instead of going to trial, both sides negotiate a compensation amount that reflects the value of the deceased’s life, lost financial support, and emotional suffering experienced by the family.
This settlement helps survivors recover from the financial and emotional impact of losing a loved one.
In Georgia, wrongful death settlements typically cover three categories of damages:
- Economic damages – Compensation for lost wages, medical bills, funeral expenses, and the financial benefits the deceased would have provided.
- Non-economic damages – Emotional distress, loss of companionship, and pain and suffering endured by the family.
- Estate-related damages – Costs related to medical care before death and funeral expenses paid by the estate.
If a settlement cannot be reached through negotiations, the case moves to trial, where a judge or jury determines the compensation amount.
Georgia law ensures that spouses, children, parents, or the estate receive the settlement based on legal eligibility.
Seeking guidance from a wrongful death attorney near you ensures families receive the compensation they deserve.
Who Is Eligible to Receive a Wrongful Death Settlement?
Georgia law (O.C.G.A. § 51-4-2) defines who can file a wrongful death claim and who is entitled to compensation. The following hierarchy determines who can receive a wrongful death settlement:
1. Surviving Spouse
The spouse of the deceased is the primary beneficiary in a wrongful death claim.
If the deceased had children, the spouse must share the settlement with them.
However, the law guarantees that the spouse receives at least one-third of the total settlement.
2. Children of the Deceased
If there is no surviving spouse, the settlement is divided equally among the deceased’s biological and legally adopted children.
Minors may have their share placed in a trust or guardianship until they reach adulthood.
3. Surviving Parents
If the deceased had no spouse or children, the parents of the deceased are next in line to receive compensation.
4. Estate Representative (Executor or Administrator)
If there are no immediate family members, the wrongful death claim can be filed by the estate of the deceased.
The settlement is distributed to heirs based on Georgia’s inheritance laws.
How Wrongful Death Settlements Are Paid Out
A wrongful death settlement can be distributed in several ways, depending on the financial needs of the beneficiaries and the terms agreed upon during the lawsuit.
1. Lump-Sum Payments
A lump-sum payment is the most straightforward method, where the full settlement amount is paid to the beneficiaries at once.
Pros of Lump-Sum Payments:
- Immediate financial relief for funeral costs and outstanding debts.
- No risk of delayed or missed payments.
- Full control over investment and financial planning.
Cons of Lump-Sum Payments:
- Large payouts may be difficult to manage, especially for minors.
- Potential tax implications if invested.
2. Structured Settlements
A structured settlement distributes payments over time in monthly, quarterly, or annual installments. This option is often chosen for:
- Minor children to provide financial stability over their lifetime.
- Spouses who rely on regular income replacement.
- Large settlements that need financial management.
Pros of Structured Settlements:
- Long-term financial security.
- Potential tax advantages.
- Reduces the risk of mismanagement.
Cons of Structured Settlements:
- Limited flexibility in accessing funds.
- Payments stop if the beneficiary passes away (unless designated for heirs).
3. Trust-Based Distribution for Minors and Dependents
If the settlement is awarded to minor children, the funds may be placed in a trust overseen by a guardian or trustee. This ensures the money is used for:
- Education expenses.
- Healthcare and daily needs.
- Future financial security.
4. Court-Ordered Payouts
In some cases, a Georgia court may supervise how the wrongful death settlement is distributed—especially if there are disputes among family members or minor beneficiaries.
What Damages Are Covered in a Wrongful Death Settlement?
A wrongful death claim in Georgia consists of two categories of damages:
1. The Full Value of the Life of the Deceased
This includes:
- Lost wages and benefits the deceased would have earned.
- Loss of companionship, guidance, and care for family members.
- Emotional distress suffered by the family.
2. Estate-Related Damages
These damages compensate the deceased’s estate for:
- Medical bills before death.
- Funeral and burial costs.
- Pain and suffering experienced before passing.
Are Wrongful Death Settlements Taxable in Georgia?
The IRS and Georgia tax laws generally do not tax wrongful death settlements. However:
- Compensation for lost wages could be taxable if structured as income.
- Punitive damages (if awarded) are taxable.
- Any interest earned on the settlement is subject to taxation.
To ensure proper tax planning, it is recommended to consult a financial advisor or wrongful death attorney near you such as Finch McCranie LLP.
How Long Does It Take to Receive a Wrongful Death Settlement?
The timeline for receiving a wrongful death settlement near Georgia depends on various factors, including whether the case is settled out of court or goes to trial.
While some cases resolve quickly, others can take years due to legal complexities.
Key Factors Affecting the Timeline:
- Settlement negotiations – If both parties agree on compensation early, the process can take a few months to a year.
- Litigation – If the case goes to court, it may take several years to resolve, depending on court schedules and case complexity.
- Appeals and disputes – If the defendant appeals the decision, legal proceedings can extend the timeline significantly.
- Multiple liable parties – Cases involving several defendants or insurance companies may require extended negotiations.
- Evidence collection and expert testimonies – Gathering medical records, accident reports, and expert opinions can slow down the process.
Payout Timeline After Settlement:
- Lump-Sum Payment – Typically processed within a few weeks to months after finalizing the settlement.
- Structured Settlement – Funds are distributed in scheduled payments over months or years, depending on the agreement.
To expedite the process and ensure maximum compensation, working with an experienced wrongful death attorney near you is crucial.
Case Study: Wrongful Death Settlement in Georgia
Example Case: Fatal Car Accident Settlement
- Victim: A 45-year-old father of two was killed by a drunk driver in Atlanta.
- Settlement: The victim’s family received $2.5 million in compensation.
- Distribution: The settlement was split among his spouse (1/3) and two minor children (2/3 in a structured trust).
- Timeline: The case was settled within 10 months through negotiations, avoiding trial delays.
This example highlights how wrongful death settlements provide financial support while ensuring long-term stability for the victims’ families.
Conclusion
Navigating a wrongful death settlement in Georgia is a complex process, but understanding who is eligible, how payouts are distributed, and what damages are covered can help families make informed decisions.
For legal guidance in securing maximum compensation, Finch McCranie LLP offers expert wrongful death representation in Atlanta.
Their experienced attorneys can handle settlement negotiations, litigation, and estate disputes to ensure families receive the justice they deserve.
If you need legal assistance with a wrongful death case in Georgia, contact Finch McCranie LLP today for a free consultation.
FAQs
How long does it take to receive a wrongful death settlement in Georgia?
Settlement timelines vary. Cases resolved out of court may take 6 to 12 months, while litigation can take several years. Once finalized, payouts typically occur within a few weeks to months. The exact timeline depends on negotiations, court proceedings, and the chosen payment method.
How are wrongful death settlements divided among family members?
Georgia law prioritizes spouses, children, parents, and estates. A spouse receives at least one-third, with the remainder split among children. If no spouse or children exist, parents or the estate receive the settlement. Courts ensure fair distribution, especially for minor beneficiaries.
What happens if the wrongful death settlement involves minor children?
Funds for minors are typically placed in a trust or structured settlement. A guardian or trustee manages the money for essential expenses like education and healthcare. In most cases, children cannot access the full amount until they turn 18. Courts may approve limited withdrawals if necessary.
Can a wrongful death settlement be taxed in Georgia?
Most wrongful death settlements are not taxable, but exceptions exist. Punitive damages and interest earned from structured settlements may be taxed. Compensation for lost income or emotional suffering is generally tax-free. Consulting a financial advisor helps avoid unexpected tax liabilities.
Can a wrongful death settlement be paid out in installments instead of a lump sum?
Yes, families can choose structured settlements, receiving payments over time instead of a lump sum. This ensures financial stability, especially for minors or large payouts. Structured settlements may offer tax benefits and better long-term financial management. Courts may enforce structured payouts for certain cases.
What if the at-fault party doesn’t have enough money to pay the settlement?
If the at-fault party lacks sufficient funds, their insurance policy usually covers the settlement. If coverage is inadequate, families may pursue personal assets or file a claim against multiple liable parties. Uninsured/underinsured motorist coverage may help in auto accident cases. An experienced wrongful death lawyer can explore all compensation options.