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Who Gets the Money in a Wrongful Death Lawsuit?

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Posted on February 6, 2025 in

In some personal injury cases, the victim does not survive. When this happens, Arizona law provides a remedy to some of the decedent’s surviving family members through a wrongful death lawsuit.

The Stone Rose Law Firm represents plaintiffs in Arizona wrongful death actions. In this post, we cover who gets the money in a wrongful death lawsuit or settlement. If you are the surviving spouse or child of someone who has died because of the wrongful actions of someone else, and you have questions about your rights under Arizona’s wrongful death laws, then call us at (480) 498-8998 or contact us online.

Who Gets the Money from a Wrongful Death Settlement?

In a successful wrongful death claim, the court will award compensation to the surviving family members.

The Arizona wrongful death statute states that eligible plaintiffs recover money amounts proportionately, based on the extent of their damages. The statutory plaintiff—the person who filed the wrongful death lawsuit—becomes the trustee of monies received and distributes the award to all statutory beneficiaries. If any dispute arises about who is entitled to what amount, then in a lawsuit the court can decide how to allocate those monies.

Is Settlement Money Taxable?

Wrongful death lawsuit award amounts or settlement sums are generally non-taxable in Arizona. This is because the money is considered compensatory damages, meaning that it is to make the plaintiffs whole again from losses they have sustained.

If you are awarded punitive damages as part of a judgment award, however, these damages are potentially taxable because they are not compensatory.

What is a Wrongful Death Lawsuit?

Wrongful death claims are civil claims that can arise from many different causes, like motor vehicle accidents, medical malpractice, defective products, workplace accidents, and criminal acts of others.

A wrongful death lawsuit allows surviving family members to press personal injury claims that their deceased relative would have had against the person who caused the fatal injury if the decedent had survived.

What can be recovered in a successful wrongful death claim are the same as those in a personal injury lawsuit. Namely, money damages for costs of medical expenses before death, for property damage arising out of the incident causing the harm, and for pain and suffering the decedent experienced before death.

Who Can File a Wrongful Death Lawsuit in Arizona?

The Arizona statute that governs wrongful death claims is ARS 12-612. Under this law, the following individuals can file a wrongful death lawsuit:

  • The deceased person’s surviving spouse.
  • Any surviving child of the deceased person. Eligible children include adopted children as well as natural children.
  • A surviving parent or guardian of the deceased person. Eligible parents include adoptive parents.

If the deceased person was a child, including an unborn child, then either of the child’s parents or a legal guardian may file a wrongful death claim.

Although all of the people above are eligible to be plaintiffs in a wrongful death suit, Arizona law only allows one wrongful death case to be filed. In this situation, one plaintiff files suit on behalf of all the beneficiaries. This person is known as a “statutory plaintiff.”

who can file a wrongful death lawsuit in arizona?

Who is Eligible to Receive Money in Wrongful Death Awards or Settlement?

It follows from the discussion above that the people who get the money in a wrongful death lawsuit are defined by who is eligible to make a legal claim under the wrongful death statute.

One exception to this general rule is that if a wrongful death beneficiary was at least in part responsible for causing the decedent’s death, then the Arizona wrongful death statute legally presumes that this person “predeceased” the decedent and is therefore ineligible to recover any compensation.

This exception is subject to its own exception: if the person who contributed to the decedent’s death was legally insane, then this predeceased determination does not apply.

If the decedent owed debts, creditors are generally unable to make claims against monies they receive from a wrongful death case.

Who Can’t File a Wrongful Death Claim?

Not every relative of the deceased person can file a wrongful death lawsuit in Arizona. Examples include common-law spouses, brothers and sisters, and uncles and aunts. Only immediate family members are eligible, as well as guardians and personal representatives.

Distinguish Wrongful Death Lawsuits from Arizona Survival Actions

In addition to wrongful death claims, Arizona law under ARS 14-3110 allows a statutory survival action. 

This is a separate cause of action that can occur in addition to or in lieu of a wrongful death claim. In a survival action, the defendant can be liable for the deceased person’s medical bills, lost income, and related losses, starting from the time of the accident and continuing until the deceased person’s death. The deceased person’s estate can also recover funeral expenses.

Some of the differences between a wrongful death claim and an Arizona statutory survival action are:

  • In a wrongful death claim, the plaintiffs are making claims for the harm they have suffered resulting from the decedent’s death. In a survival action, the estate of the decedent makes claims for the harm the decedent suffered.
  • In a survival action, some damages that are available in a wrongful death claim are not available, most notably pain and suffering damages.

What Damages Are Available in an Arizona Wrongful Death Claim?

Successful plaintiffs in a wrongful death judgment award settlement amount can recover damages in economic or direct damages and non-economic or indirect damages.

Economic damages include:

  • Medical bills of the decedent
  • The lost wages value of the deceased person’s income and benefits the deceased person would have earned
  • The value of property damage or replacement costs arising from the incident causing the death
  • Funeral expenses and burial costs

Noneconomic wrongful death damages include more intangible losses that are not as easy to calculate into money but are still compensable. These include:

  • Loss of consortium and companionship
  • Loss of emotional support and guidance
  • Loss of the value of household services the decedent would have provided
  • Mental anguish
  • Emotional distress
  • Pain and suffering of the surviving relatives who are eligible to be plaintiffs

In some cases involving egregious behavior of the liable person, a jury has the discretion to award punitive damages.

What are the Sources of Money in a Wrongful Death Lawsuit or Settlement?

There are two main sources of money damages in a wrongful death settlement or judgment: insurance proceeds, if the person liable for the decedent’s death has insurance or assets of the liable person that can be liquidated to satisfy a judgment award or settlement, or both if insurance does not pay for all amounts owed.

Insurance company policies that may pay for a wrongful death settlement or judgment include auto insurance, homeowner’s or renter’s insurance, business insurance like premises liability insurance, and medical malpractice insurance.

Schedule a Free Consultation With a Phoenix Wrongful Death Lawyer

Wrongful death compensation through a judgment or settlement can never make up for the loss of your loved one, but it can help provide your family with financial support at this difficult time.If you are a surviving family member of a wrongful death victim, then call Stone Rose Law at (480) 498-8998, or contact us online, so you can begin with a free consultation with an experienced wrongful death attorney.