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How Are Wrongful Death Settlements Calculated?

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A man holding a bouquet of flowers sits beside a gravestone surrounded by autumn leaves.

The Short Answer

You can only receive compensation for punitive damages in Alabama wrongful death cases. However, your attorney can use your economic and emotional losses to emphasize why the wrongdoer should be punished.

Key Takeaways

  • Only punitive damages can be awarded for wrongful death in Alabama.
  • Punitive damages serve to punish the wrongdoer for egregious negligence.
  • Economic and non-economic damages can be used to highlight the need for punitive damages.
  • In Alabama, wrongful death settlements are typically not taxable.
  • Wrongful death settlements usually get divided amongst the deceased’s heirs.
  • A wrongful death lawyer can help estimate your settlement and fight for maximum compensation.

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Wrongful Death Damages You Could Receive

While damages in Alabama wrongful death cases are exclusively punitive, the settlement amounts can differ greatly based on the specific details of each case.

Punitive Damages Explained

Punitive damages are intended to punish the responsible party for their wrongdoing and discourage them from behaving similarly in the future. The court considers factors such as the severity of the defendant’s negligence, the impact of their negligence on the plaintiff, and the need to send a strong message about accountability. These damages are not related to the family’s financial or emotional losses but instead concentrate on the wrongdoer’s culpability.

Factors That Influence Your Settlement Amount

To determine the amount of compensation awarded for punitive damages, there are several factors that the wrongful death settlement calculator will consider. These considerations include:

  • The Deceased Person’s Age: Younger individuals did not have as much time to interact with their loved ones, so the compensation amount may increase based on the years of interaction that were lost.
  • Earning Capacity: The income the deceased could have earned over their lifetime can highlight the financial contributions their loved ones now live without.
  • Age and Circumstances of Dependents: The needs of the deceased’s dependents, such as young children or elderly parents, can emphasize the impact of the loss.
  • Education and Training: The level of education and specialized skills of the deceased may reflect their potential future contributions to their family and society.
  • Funeral and Burial Expenses: The costs associated with laying the deceased to rest are often considered when evaluating the total impact of their death.
  • Medical Bills and Other Expenses: The expenses incurred due to the injury or illness leading to death provide further context.
  • Lost Benefits: The value of lost benefits such as pensions, health insurance, and retirement savings may also be considered.

While these factors are typically associated with compensatory damages, a wrongful death attorney can highlight them to emphasize the severity of the losses that the defendant’s wrongful conduct caused and the need for punitive damages. 

If you lost a loved one due to someone else’s negligence, let Long & Long Injury Attorneys get justice for you and your family.

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Are Wrongful Death Settlements Taxable?

Wrongful death settlements in Alabama are not taxable income under federal tax law. However, it is important to note that any interest or other taxable components included in the settlement may be subject to federal taxation. To fully understand the tax implications specific to their settlement, families should consult with a tax professional.

How to Divide a Wrongful Death Settlement

Alabama law requires that wrongful death settlements be distributed according to the state’s intestacy laws. This typically means the settlement is divided among the deceased’s heirs. Most often, the spouse, children, or parents of the deceased are entitled to a share of the settlement.

A Lawyer Can Estimate Your Settlement Amount

To figure out the possible value of a wrongful death settlement in Alabama, you need to have a deep understanding of how the state calculates damages. An experienced wrongful death attorney can determine the value of punitive damages by assessing the details of your case and evaluating how responsible the defendant is.

While no amount of money can sufficiently compensate for the loss of a loved one, our team will fight for the maximum settlement available so you and your family can focus on healing. If you’re located in Mobile, Orange Beach, Gulf Shores, Foley, or the surrounding areas, we can help you seek justice. Contact us to speak to a member of our team for free today.

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