What happens to a settlement when a person dies

Generally, no one else is required to pay the debts of someone who died. When someone dies, their assets pass to their estate. If they die with an unpaid debt, it should be paid from any money or property they left behind, if state law requires that it be paid. If there is no money or property left, then the debt generally will not be paid. For example, when state law requires the estate to pay survivors first, there may not be any money left over to pay debts.

The estate’s finances are handled by the personal representative, executor, or administrator, who pays any debts from the money in the estate, not from their own money. Being a personal representative means you can use estate assets to settle your loved one’s debts, after making payments to survivors according to state law.

Generally, no one else is required to pay the debts of someone who died, unless it is a shared debt. For instance:

  • You were joint account owners
  • You borrowed the money as a co-signer
  • You are a surviving spouse and you live in a community property state where spouses share responsibility for certain marital debts
  • Your state has necessaries statutes where parents and spouses could be responsible for certain necessary costs such as healthcare

If you were an authorized user on a credit card account belonging to the person who died, that does not make you responsible for paying their credit card debt.

Additional Help

These rules can be hard to navigate, especially when you’ve recently lost a loved one. There are experts who can help, potentially for free or at a low cost.

  • Get legal help. Lawyers can help you understand your rights and make a plan. You may qualify for free legal aid, based on your income. Contact your local bar association or find a legal aid office in your area.
  • Find local services and supports. The Eldercare Locator connects older Americans and their caregivers with trustworthy local support resources, including free legal aid for many older adults .

Generally, some or all of the structure payments are guaranteed to be paid, even in the event of the death of the original recipient.  Depending on the design of the structured settlement, the early passing of a loved one may mean that the remaining guaranteed payments may continue to the estate of the initial recipient, or to a “secondary payee” that has been named specifically (like the beneficiary under a life insurance policy or RRSP).

These payments remain tax-free to the estate or named secondary payee and are paid out on the same dates and in the same amounts, just as they were to your loved one.  Only after any minimum guarantee period has passed or in those rare cases where the settlement does not provide for any minimum guarantee, will the payments simply stop on the death of the initial recipient.

McKellar Structured Settlements Inc.’s Client Services department has a dedicated Estate Administrator to answer any questions and assist in guiding you through the death claim process upon the passing of a loved one.  We will deal with the life companies directly to help ease your burden, and provide you with the necessary information required to settle the death claim.

When an injured claimant dies before their personal injury case is settled, the claim will often carry on through the deceased’s estate. The executor of the will, or an administrator if there is no will, should petition the court to establish an estate. That person would then take the place of the deceased plaintiff. Laws vary by state, so it is important to hire a Fayette County injury attorney who can help you with the process. 

Who Can Persue A Deceased Family Member's Injury Claim

Those who will benefit from the deceased’s estate, such as family members and other heirs, are able to pursue the claim. However, any outstanding expenses from the injury, such as medical bills, will also belong to the person who wishes to carry on with the personal injury case. 

Consulting with your Fayette County injury attorney is the best step because the insurance company will require attention. They may need some simple documentation or they may do something extreme, like pull their offer, if there was one. 

Your attorney can advise you of how to deal with the insurance company. Your next steps will depend on what stage the personal injury case was left at. It may be easier if it was close to settlement. If the case was still in preliminary stages, you will need to decide if you want to continue to pursue it. 

Contact A Personal Injury Attorney

If your loved one died before their personal injury case was settled, you need a Fayette County injury attorney to advise you of your next steps. Rated one of the top trial lawyers in Georgia, Jason R. Schultz has the experience to win your case. Contact his office today at (404) 474-0804. But first, you can read our FREE eBook to learn more about personal injury cases: The Ultimate Guide to Accident Cases in Georgia: The Truth about Your Injury Case.

What happens if respondent dies?

In a civil suit, any of the party to the suit dies and if right to sue survive then the suit can be continued by the heirs or legal representative of the deceased party. If in any case where right to sue does not survive the suit will come to an end.

What happens when a plaintiff dies during a lawsuit Florida?

What Happens If a Party Involved in a Civil Lawsuit in Florida Dies? – As Provided by Law. As provided by Florida Statutes on section 46.021, “no cause of action dies with the person; All causes of action survive and may be commenced, prosecuted, and defended in the name of the person prescribed by law.”

What happens to a settlement when a person dies California?

California's Survival Statute If a plaintiff dies prior to or after commencing an action and before trial, the court must allow the pending action to proceed by the decedent's personal representative or successor in interest, if one exists.

How do I file a lawsuit against a deceased person?

The court upon an application made by any other party, may proceed with the civil suit in the absence of any person representing the deceased defendant and use the estate of the deceased person to fulfil any pending liability found against the said defendant after the final decree in the civil suit.