404-636-4900 Will the settlement we receive for a wrongful death claim in Georgia be subject to taxation? This is a common question we get asked by families pursuing wrongful death claims at Deming Parker offices. By understanding these factors, you can better manage your finances after receiving a settlement and ensure you comply with all relevant tax laws.
In Georgia, the tax treatment of wrongful death settlements involves various considerations that can significantly impact the amount of net compensation you receive. Today, we’ll explore how these settlements are taxed and the types of damages involved.
How Georgia Pays Out Wrongful Death Settlements
Wrongful death settlements in Georgia aim to provide financial compensation to the surviving family members for the loss of a loved one due to negligence. The process involves several steps, from determining claimants’ eligibility to establishing liability, calculating the different types of damages owed, and negotiating with insurers or in court.
With the help of a lawyer specializing in wrongful deaths, you can successfully solve your case and recover several types of damages, which address different aspects of the loss. These include:
Types of Damages in Wrongful Death Settlements
- Economic damages: Cover quantifiable losses such as lost wages, medical expenses incurred before death, and funeral costs. To calculate economic damages, for example, lost wages, we pay attention to the deceased’s income, potential future earnings, and other financial contributions to the family.
- Non-economic damages: These address more subjective, intangible losses, such as pain and suffering, loss of companionship, and emotional distress. Non-economic damages aim to compensate the family for the emotional and relational void left by their loved one’s passing.
- Punitive Damages: In cases where particularly egregious conduct leads to death, the courts can impose punitive damages to punish the wrongdoer and deter similar behavior in the future.
Is a Settlement for a Wrongful Death Claim Taxable in Georgia?
One of the most pressing concerns for families receiving a wrongful death settlement is whether these funds are subject to taxation. According to IRS regulations, specifically IRS rule 1.104-1, most components of wrongful death settlements are generally exempt from taxes because they are considered compensation for personal injury or illness. Let’s explore this in more detail:
IRS Rule 1.104-1
The IRS Rule 1.104-1 outlines settlements and judgments’ tax implications and stipulates that amounts received from personal injury (including wrongful death settlements) are not taxable.
This is because the IRS doesn’t regard these settlements as income but as compensation for loss, thereby exempting them from federal taxes.
However, certain components are taxable. Specifically, the only taxable portions of a wrongful death settlement are punitive damages (awarded to punish the defendant), and any accrued interest on the settlement.
How Much Can You Get Through a Wrongful Death Settlement?
When pursuing a wrongful death settlement in Georgia, the amount of compensation that families can receive varies widely based on numerous factors. Georgia law aims to compensate for the “full value of life” of the deceased, covering both economic and non-economic damages.
This means the final settlement will depend on factors like the deceased’s age, health, earning capacity, the extent of the damages incurred, the liability of the responsible party, and overall the circumstances surrounding their death.
Working with an experienced attorney it’s important to ensure all potential compensable damages are accounted for. At Deming Parker, we offer free consultations to understand your claim’s potential value and conduct thorough investigations to gather evidence that allows us to claim the maximum compensation possible by law.
As shown in our case results, we’ve secured multi-million dollar settlements for families all over Georgia, and we aim to provide your family with the same high-quality representation.
How Long Do You Have to File a Wrongful Death Claim?
The statute of limitations imposes a strict time limit to file a wrongful death claim in Georgia. Failing to file within this period can result in losing your right to seek compensation, so it’s crucial to have this timeframe in mind to ensure your case is heard.
Georgia’s Statute of Limitations
According to Georgia law, specifically O.C.G.A. § 9-3-33, you generally have two years from the date of the deceased’s death to file a wrongful death claim, although there are exceptions to this statute (such as ongoing criminal investigations or estate issues) that will depend on your case’s specific circumstances.
So, make sure you consult with an experienced attorney as soon as possible after the incident. We can help you determine if your case is subject to the statute of limitations, and start promptly building the case to ensure the claim is filed within the allowable period.
We Can Handle Your Wrongful Death Settlement in Georgia – Schedule a Free Consultation
The legal system may seem complicated, but you don’t have to face it alone. With over five decades of experience helping injured families recover compensation for damages in Georgia, Deming Parker has the necessary knowledge and expertise to handle even the most complex wrongful death cases.
Our team of lawyers is dedicated to guiding you through every step of the process, handling all the legal aspects of your case while you focus on recovery.
If you have questions about filing a wrongful death claim or need assistance with your case, contact us today to schedule a free consultation. We’ll discuss your options and determine the best course of action moving forward.
