Wrongful death settlements in Oklahoma are paid to the personal representative of the deceased person’s estate. That person then divides the money among surviving family members, such as a spouse and children. The payout can come as a lump sum (all at once) or through structured payments made over time.
Before any funds are distributed, a judge must review and approve the settlement to make sure it is fair. This process ensures that every family member who suffered a loss receives their proper share.
The Role of the Personal Representative
Oklahoma law says that only the personal representative (the person managing the deceased’s estate) can file a wrongful death claim. They are responsible for negotiating the settlement, paying certain expenses, and distributing the remaining money according to the law.
Despite the fact that this person handles the settlement, they don’t keep the funds for themselves unless they are also a beneficiary. Instead, they make sure the proceeds are split correctly between the estate and surviving family members.
How Settlement Funds Are Divided
Wrongful death settlements are usually divided into two main parts:
- Money for the estate: This portion covers things like medical bills, funeral costs, and any pain and suffering the person experienced before death. These funds go to the estate and may be used to pay outstanding debts before anything is passed on to heirs.
- Money for the family: This portion compensates loved ones for their emotional and financial losses, such as loss of support, companionship, and guidance. These funds go directly to the family and are not used to pay the deceased’s debts.
This system ensures both the estate and surviving relatives are fairly compensated for their losses.
Lump Sum vs. Structured Settlements
The family may choose to receive the settlement as a lump sum or as structured payments over time.
- A lump sum gives the family access to all the funds right away, which can help cover urgent expenses.
- A structured settlement spreads out the payments, providing more consistent financial support over the long term.
Each method has benefits depending on the family’s needs and financial situation.
Court Approval and Tax Rules
For the most part, Oklahoma courts must approve every wrongful death settlement before it’s finalized. The judge reviews the agreement to make sure it follows state law and protects the interests of all beneficiaries.
In most cases, wrongful death settlements are generally not taxable under state or federal law because they compensate for a physical injury or death. However, any punitive damages and interest that might be part of the settlement could be taxed, among other exceptions.
Contact Gorospe Law Group To Schedule a Free Consultation
A wrongful death settlement cannot replace the life of a loved one, but it can help ease the financial burden that follows. Knowing how these settlements are paid out can help families know what to expect and feel more confident during the process.
If you’ve lost someone due to another person’s actions, Gorospe Law Group can explain your rights and help ensure that your settlement is handled properly from start to finish. Contact our wrongful death lawyers to schedule a free consultation today by calling (918) 582-7775.