Wrongful Death Settlements Explained
Wrongful Death Settlements Explained
Wrongful Death Settlements Explained
Losing a loved one can be devastatingly painful under any circumstances, but when your loved one’s death was the direct result of someone else’s negligence or intentional actions, your grief is only compounded.
A wrongful death settlement can’t bring your loved one back or erase your grief. However, it can help you and your family achieve some level of financial security and stability as you grieve.
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What Is A Wrongful Death Settlement?
Many people imagine their wrongful death claims leading to a trial. While some legal claims do have to be decided in a courtroom, most wrongful death claims are ultimately resolved through a settlement.
A wrongful death settlement is an agreement between the plaintiff (the person who has lost a loved one) and the defendant (the person responsible for the death). It usually involves the defendant paying the plaintiff an agreed-upon amount of money to drop the legal claim.
If you’re thinking about filing a wrongful death claim, you should be mindful of the wrongful death statute of limitations. You generally have a period of two years from the date your loved one passed away to pursue a legal case.
How Does A Wrongful Death Settlement Work?
Resolving a wrongful death case with a settlement is usually faster than going to trial, but the settlement process can take some time.
Attorneys for both parties will usually negotiate the amount of the settlement, how it will be paid, and any other terms of the agreement (like confidentiality clauses).
What Should Be Included In A Colorado Wrongful Death Settlement?
Generally, a wrongful death settlement should include all of the following:
- A statement clarifying the legal matter you’re resolving (like the death of a loved one on a specific date).
- The amount of payment (and how and when it will be paid).
- Any confidentiality requirements for either party.
- A statement that the defendant will pay legal fees if the plaintiff has to get a court to enforce the judgment.
- A statement that payment of the settlement will resolve the case.
It’s important to work with an experienced wrongful death attorney when settling your case. Your attorney will be able to make sure the settlement protects your interests and is enforceable under Colorado law.
What Damages Can Be Recovered In A Wrongful Death Settlement?
In a legal case, “damages” refers to financial compensation for losses. There are three main categories of damages you may be able to recover.
Economic Damages
Economic damages are monetary losses you and your family have suffered. In a wrongful death case, monetary damages might include the following:
- Loss of future income your loved one would have earned.
- Loss of health benefits and other work-related benefits.
- Funeral and burial costs.
- Loss of household services (like cooking or childcare).
Your legal team can help you accurately determine the value of your case’s economic damages.
Non-Economic Damages
In January of 2025, a new Colorado law raised the cap on non-economic damages for wrongful death cases to $2,125,000.
However, there are certain circumstances where the cap on damages may be eliminated entirely. If the decedent’s death was the result of a felonious killing (as defined in C.R.S. 15-11-803(1)(b)), there is no cap on non-economic damages.
“Felonious killing” includes any of the following:
- First-degree murder
- Second-degree murder
- Manslaughter
Notably, in civil proceedings (including wrongful death cases), the killer doesn’t have to have been convicted for the cap to be lifted. The court may use a preponderance of evidence standard to determine whether the defendant was liable for a felonious killing.
Solatium Amount
Usually, if you want to recover non-economic damages in a wrongful death case, you’ll need to testify about your suffering after the loss of your loved one. Testifying can be extremely emotionally difficult.
In wrongful death damage claims, you have the option to claim a solatium amount instead of suing for non-economic damages. This is a set financial amount determined by Colorado law and periodically adjusted for inflation.
Are Wrongful Death Settlements Taxable?
Some wrongful death claims ultimately lead to high settlements. Many families of deceased loved ones worry that they’ll be hit with an unexpected tax bill. The good news is that, in most cases, wrongful death settlements are not taxable.
However, if your settlement money reimburses you for medical bills that you previously deducted from your taxes, that portion of your settlement could be taxable.
How Is A Wrongful Death Settlement Divided Among Family Members?
In Colorado, wrongful death lawsuit requirements state that there can only be one wrongful death suit. The proceeds are divided between surviving family members. Usually, the surviving spouse and any minor children take priority.
If your case is resolved with a settlement, you have some room to negotiate how the funds will be divided, but a judge must sign off on the arrangement.
Are Wrongful Death Settlements Public Record?
Generally, wrongful death litigation is a matter of public record. However, if your case settles outside of court, the terms of the settlement usually aren’t made public.
What Is A Structured Settlement In A Wrongful Death Case?
You might wonder how wrongful death settlements are paid. Often, plaintiffs in personal injury or wrongful death cases choose a structured settlement, which means they’ll receive a steady stream of payments instead of a lump sum.
Should I Accept A Wrongful Death Settlement Offer?
Are you unsure if you should accept a settlement? Wrongful death cases can be highly complex, and many insurance companies will make early settlement offers that are too low to see if you’ll accept. Never accept a settlement offer without talking to an attorney first.
When Should You Contact A Colorado Wrongful Death Lawyer?
If your loved one’s death was the direct result of someone else’s negligence, recklessness, or intentional actions, it’s a good idea to contact our wrongful death lawyers. Our Elite Litigation Group is here to help you determine whether you have a strong wrongful death case. Initial consultation is free, and there are no upfront expenses.
Do Personal Injury Caps Apply to Wrongful Death Settlements in Colorado?
Yes, personal injury caps apply to wrongful death settlements in Colorado. While there is no limit on economic damages, non-economic damage caps apply. Generally, the plaintiffs can claim the following for non-economic damages:
- Up to $250,000 in all cases
- As much as $500,000 if there is clear and convincing evidence that it’s appropriate, based on the facts
- No more than $300,000 if the claim is based on medical malpractice
- No damage cap for felonious killing (murder or manslaughter cases)
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