Is a Wrongful Death Settlement Taxable?
When you lose a loved one, you may need funds that meet your needs after the fatal accident. You’ve likely been left with high expenses, and you shouldn’t have to pay for those from your own pocket or inheritance. That’s where a wrongful death claim and settlement can help.
But once the at-fault party pays for the suffering they caused, is a wrongful death settlement taxable?
Your wrongful death lawyer can help you answer that. Your lawyer isn’t just here to help you win a lawsuit—they’re here to fight for the compensation you need for your family’s recovery. If you’re concerned about your finances following a wrongful death settlement, reach out to your injury lawyer about how your taxes will be handled and how to ensure you get and keep the most out of your settlement.
Parts of Your Wrongful Death Settlement May Be Taxable
The majority of a wrongful death settlement shouldn’t be taxed. According to the IRS, any damages coming from a personal injury shouldn’t be taxed. Someone else caused your injuries and your suffering, which means you shouldn’t have to pay for something they caused.
But that doesn’t mean you’re guaranteed the full value of your Florida wrongful death settlement. For example, you may have pursued punitive damages. Punitive damages aren’t offered to compensate you for a specific loss. They’re instead there to punish the wrongdoer for the deadly actions they took. Because of this, your punitive damages can be taxed.
The differences between your damages may not be clear to you, though, which is where a wrongful death lawyer can help. If you’re seeking compensation for a death in the family and you’re concerned about the effects on your taxes, a lawyer can help you settle things fairly.
Getting the Maximum Settlement for Your Damages
Getting the most out of your wrongful death settlement can be difficult when taxes are involved. You may be worried about how you’ll pay for their final expenses and your continuing costs. If you could also face hefty taxes along with those losses, it can be even tougher to recover from the financial and emotional impacts of your family’s loss.
Your wrongful death lawyer can make that easier. A lawyer can give you guidance on your claim, ensuring you’re getting the funds you need for your financial recovery. They can also review what parts of your settlement, if any, will be taxable. That way, you know what to expect and how to get fairly compensated for all the losses you’ve suffered.
Connect with a Lawyer About Your Wrongful Death Settlement
When you’ve lost a loved one, you may need significant funds just to keep your quality of life. Losing a portion of those funds because of your taxes can affect your life, which is why it’s important to speak to a wrongful death lawyer from The Law Offices of Casey D. Shomo.
Your lawyer can help you seek compensation and prevent your settlement from being hit unnecessarily by hefty taxes. To take advantage of our free consultations, reach out by calling 561-659-6366 or by filling out the online contact form below.