How Are Wrongful Death Settlements Paid Out?

Losing a loved one because of someone else’s actions is a devastating experience. Beyond the emotional impact, families often face sudden financial strain — funeral costs, medical bills, and the loss of household income or support. These cases are handled differently than standard personal injury claims, which leaves many families with questions: What can I do? Who can file a lawsuit? How are wrongful death settlements paid out? What can survivors expect during the process?

Florida’s Wrongful Death Act provides a clear legal structure, but every case is shaped by the specific facts, the survivors involved, and the available insurance or assets. Understanding how payouts work can help families make informed decisions during an incredibly difficult time.

What Is Considered a Wrongful Death? 

A wrongful death occurs when someone loses their life because another individual or company failed to meet a legal duty and caused a fatal injury. This is different from an accidental death: a tragic event that may be unforeseeable or unavoidable and does not involve wrongdoing. The difference matters because only a wrongful death grants surviving family members the right to pursue compensation under Florida’s Wrongful Death Act.

To be eligible for compensation under Florida law, the family must show that:

• The defendant owed a legal duty to the decedent;
• The defendant breached that duty;
• That breach caused the death; and
• The survivors suffered legally recognized losses.

When these elements are established, Florida’s statute allows survivors and the estate to pursue damages for both financial and emotional harm, which directly impacts the potential value of a wrongful death settlement.

Types of Wrongful Death Claims

Wrongful death can arise in many types of preventable incidents, including:

• Motor vehicle crashes
• Boating accidents
• Train accidents 
• Unsafe property conditions
• Workplace and construction incidents
• Defective products
• Recreational and tourism-related activities

Who Can File a Wrongful Death Claim in Florida?

In Florida, a personal representative of the decedent’s estate must file the wrongful death lawsuit. This personal representative brings the claim on behalf of both the estate and all eligible survivors, which may include:

• A surviving spouse
• Minor children, and in certain situations, adult children
• Parents of the decedent
• Blood relatives or adoptive siblings who depended on the decedent for support

Florida Statute §768.21 outlines exactly which damages each category of survivor may recover. For example:

• A spouse may recover loss of companionship and mental pain and suffering.
• Minor children, or all children if there is no surviving spouse, may recover loss of parental companionship, instruction, and guidance.
• Parents of a deceased minor child may recover mental pain and suffering.
• Any survivor who paid medical or funeral expenses may be reimbursed.
• The estate may recover lost earnings and certain net accumulations under defined circumstances.

These rules determine who is legally entitled to compensation, a point that becomes clear when looking at real Florida cases.

• In the Disney Springs food-allergy wrongful death lawsuit, the decedent’s husband serves as the personal representative because spouses are primary survivors under Florida law.
• In the FIU bridge collapse litigation, claims were brought on behalf of multiple categories of survivors (including spouses, children, and dependent relatives) each with different rights under §768.21.
• And in the 2022 Florida Keys parasailing tragedy, the victim’s surviving family members, including her young child, were eligible to pursue claims tied to loss of parental companionship, guidance, and financial support.

These examples show how survivor eligibility shapes the scope of a wrongful death claim. Florida’s statute ensures that compensation is tied directly to the survivor’s relationship with the decedent and the specific losses that relationship represents.

Compensation for Wrongful Death Claims

Wrongful death damages fall into three primary categories.

Economic Damages

These compensate for financial losses, including:

• The value of lost support and services
• Medical expenses related to the final injury
• Funeral and burial costs
• Lost earnings between the injury and death
• Future income and benefits the decedent would have provided

Non-Economic Damages

These compensate for human losses such as:

• Mental pain and suffering
• Loss of companionship and protection
• Loss of parental companionship, instruction, and guidance

Punitive Damages

Punitive damages may be available in limited circumstances where the defendant’s conduct goes beyond ordinary negligence. To qualify, the evidence must show intentional misconduct or gross negligence, meaning the defendant knew their behavior was dangerous and chose to disregard the risk, or acted with a conscious indifference to the safety of others. These damages are rare and require court approval to pursue, but when allowed, they can significantly increase the value of a wrongful death case.

How Are Wrongful Death Settlements Calculated?

There is no single formula for determining a wrongful death settlement in Florida. Case value depends on several factors:

• Strength of liability evidence: Clear proof of negligence increases leverage.
• Severity of the misconduct: Repeated or reckless behavior can justify higher damages.
• Decedent’s age, health, and earning potential: Younger decedents or those with long careers ahead may create larger economic damages.
• Number and type of survivors: A spouse, young children, or dependent relatives broaden the damages available.
• Documented financial losses: Funeral costs, medical bills, and income projections all matter.
• Insurance coverage and available assets: Policy limits often influence the maximum recoverable amount.

Your wrongful death attorney’s experience plays a major role, too. You need someone who can accurately assess damages, coordinate expert testimony, and negotiate a settlement that reflects the full extent of each survivor’s losses. Our personal injury attorneys have decades of experience and know how to handle a wrongful death lawsuit with the compassion and skills it deserves. 

How Is a Wrongful Death Settlement Paid Out?

Wrongful death settlements in Florida are typically paid in one of two ways:

Lump-Sum Payment

A single payment issued by the defendant or insurance carrier. After receipt, the personal representative distributes funds according to the court-approved allocation.

Structured Settlement

Part of the settlement is placed into an annuity that pays out over time. Structured settlements are often used when:

• Minor children are involved
• Survivors prefer predictable long-term income
• Additional financial protections are needed

Any settlement involving minors or incapacitated adults must be approved by the court, and the court may require guardianships or restricted accounts to safeguard the funds.

How Is a Wrongful Death Payout Divided Among Survivors? 

Florida does not divide wrongful death settlements evenly. Distribution depends on:

• Each survivor’s relationship to the decedent
• Their level of financial dependency
• The specific damages they are entitled to under §768.21
• Evidence supporting their personal and financial losses

The personal representative works with counsel to propose an allocation. If the survivors agree, the court typically approves it. If disagreements arise, the judge decides the distribution based on the statute.

Does an Insurance Company Pay For Wrongful Death?

In many cases, yes. Wrongful death settlements are often funded by one or more insurance policies, including:

• Auto liability policies
• Commercial general liability coverage
• Property or premises liability insurance
• Professional malpractice policies
• Umbrella or excess policies

In complex cases, like construction incidents, resort accidents, or multi-party events, several insurers may share responsibility.

What Is the Average Payout In a Wrongful Death Suit?

Wrongful death settlements in Florida vary widely, but most cases fall somewhere between the low six figures and several million dollars, depending on the facts. Smaller cases often resolve for the limits of the available insurance policy, while cases involving clear negligence, significant lost income, or multiple dependent survivors can reach higher ranges.

The upper end of wrongful death settlements is typically driven by factors such as:

• The decedent’s earning potential and career trajectory
• The number of survivors eligible for damages under Florida law
• The strength of the evidence showing negligence or safety violations
• The extent of medical bills, funeral costs, and other documented losses
• Whether punitive damages are allowed based on the defendant’s conduct
• The insurance coverage or assets available to satisfy a settlement

Is a Wrongful Death Settlement Taxable?

There is no Florida state tax on settlement proceeds. Punitive damages and post-judgment interest, however, may be taxable, so survivors should speak with a tax professional during the distribution process.

Have More Questions? Speak to an Experienced Florida Wrongful Death Attorney

A wrongful death claim is one of the most difficult challenges a family can face. At Levin Litigation, we believe you deserve more than legal representation: you deserve a team that listens, responds, and guides you with care. Our attorneys handle each case with personal attention, keeping your family informed at every stage while building a strategy grounded in experience and a clear understanding of Florida’s wrongful death laws.

If you are weighing your options or need help understanding the next steps, our team is ready to speak with you, answer your questions, and provide the support you need during this process. Reach out to Levin Litigation to discuss your case with an experienced Florida wrongful death attorney.