Are Wrongful Death Lawsuit Settlements Taxable? If you received compensation from a wrongful death lawsuit, your settlement is not taxable.

According to the Internal Revenue Service (IRS), settlements from wrongful death lawsuits are untaxable by law. That means that if you received any form of compensation in a wrongful death case, you should be able to collect the full awarded amount. 

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Wrongful Death Lawsuits

Wrongful death cases encompass a variety of cases and situations in which an individual loses their life in a preventable manner. These types of cases can take place during everyday life, in the comfort of your own home, in public, while visiting a friend, or at work. 

Examples of Wrongful Death Cases That Could Lead to a Settlement

If you lost a loved one due to someone else’s negligence, you could have a wrongful death case. Your wrongful death case could have been similar to one of the following:

  • Vehicle, pedestrian, and cycling accidents
  • Exposure to dangerous chemicals or substances
  • Accidents at work, often involving dangerous machinery that malfunctions, was used improperly, or due to a lack of supervision
  • Medical malpractice
  • Defective products that lead to physical harm
  • Slip and fall accidents
  • Accidents during recreational activities or sporting events
  • Assault, violence, or intentional forms of physical harm
  • Much more

How Much Could I Collect?

There is no specific amount that you are limited to collecting in a wrongful death case. This is because the details of every claim are different and depend on the specifics of your case and the extent of your damages and emotional suffering. 

While it is possible to collect several thousands of dollars or more if your claim is successful, a legal professional with experience in wrongful death cases can help you determine how much you could expect. Regardless of how much your claim is worth, remember that wrongful death settlements are not taxable. 

How Are Settlements Paid Out?

If you are awarded compensation in a wrongful death lawsuit, there are various ways in which you could be paid. Generally, your options will include a lump-sum payment or a structured settlement disbursed over time. 

Lump-sum payments mean you will receive all awarded compensation in a single, tax-free sum. While it can be beneficial to receive all compensation at once, lump-sum payments can be smaller than gradually structured payments. 

Everyone has a different financial situation and needs, so if you find yourself receiving settlement money from a wrongful death lawsuit, it could be useful to consult with a legal professional. 

Proving Liability

In order for you to receive compensation in a wrongful death suit, it is necessary that you prove a third party was at fault. 

Believing someone else was to blame for the wrongful death of a loved one and being able to legally prove liability are very different matters. Because you will need to organize the facts of your case in a legal and logical manner if you are considering filing a lawsuit, it could be helpful for you to have a lawyer assist you.

Negligence 

One of the most common ways in which third parties are found liable in wrongful death cases is through negligence. Negligence refers to the failure of a responsible party to act in a reasonable or safe manner. Anyone who failed to create a safe environment or contributed to the wrongful death of a loved one could be found liable on the grounds of negligence. 

If you suspect negligence in the loss of a loved one, a lawyer who specializes in wrongful death cases can help you determine if you have a valid case.

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Hiring a Lawyer

There are many ways that having a lawyer represent you could be helpful. Some of the potential benefits to legal representation include but are not limited to:

  • Assistance with cumbersome and time-consuming legal paperwork necessary in wrongful death claims
  • General support while you are dealing with the aftermath of a tragic event
  • Ensure that you meet all legal deadlines so that your suit can move through the legal system in a timely manner 
  • Help you manage your expectations so that you can focus on planning for your future
  • Much more

Florida Statutes § 95.11(4)(d) states that claimants have only two years to take action in wrongful death cases. This means you could have a small window to take action based on the statute of limitations. If you are considering filing a wrongful death lawsuit, acting swiftly could be in the best interest of you and your loved ones. 

Our Attorneys Work on a Contingency-Fee Basis

Ensuring all of your paperwork is filled out properly and filed promptly can seem overwhelming during this difficult time. Our attorneys work on a contingent-fee basis which means, if you hire us to represent you, you pay nothing upfront or out-of-pocket unless we secure a settlement for you. 

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Contact Us Today

If your family suffered the tragic loss of a loved one in a preventable manner, you could have grounds to take action. You do not want to miss out on the compensation your family deserves following an avoidable tragedy. 

Call 1-800-747-3733 for a free, no-obligation consultation with the Law Offices of Anidjar & Levine today.