Dawn Pinnisi
February 18, 2025
If you’re wondering what happens to a settlement when a person dies, you’re not alone. It’s a question many clients in Paramus, New Jersey, have asked us here at Varcadipane & Pinnisi, P.C. Whether it’s a personal injury lawsuit you’re pursuing or one you’re defending against, it’s crucial to understand how these situations play out under New Jersey law. Let’s break it down together.
Does My Injury Claim End if the At-Fault Party Passes Away?
No, your injury claim doesn’t automatically end if the at-fault party dies. In New Jersey, personal injury claims can continue even after the responsible party’s death. However, the lawsuit transitions to being filed against the deceased individual’s estate. This shift means that the executor or administrator of the estate assumes responsibility for the case, representing the interests of the deceased party.
Here’s how the process works:
- Estate Involvement: The claim is filed against the estate, and any resulting settlement or judgment is satisfied using the estate’s financial resources, including property, savings, or other assets.
- Probate Filing: Filing a claim in the probate court managing the estate is typically required to ensure your case is recognized and can proceed efficiently.
- Executor’s Role: The executor manages the estate’s obligations, including legal claims like yours.
New Jersey’s Survival Action statute ensures that valid personal injury claims are not dismissed simply because the at-fault party has passed away. However, pursuing such cases can involve additional complexities, such as:
- Timely Action: Delays could risk the distribution of estate assets, complicating your ability to collect damages.
- Legal Representation: Engaging with the estate’s executor or legal team may require skilled negotiation and an understanding of probate procedures.
Because of these challenges, acting swiftly and working with an experienced wrongful death attorney is essential to ensure your rights are preserved, and your claim moves forward efficiently.
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What if I Die Before Settling the Claim?
If you die before your injury claim is settled, then your estate can usually continue the settlement process. Under New Jersey’s Wrongful Death Act, certain family members or the executor of your estate have the statutory right to take over and pursue the claim for you.
The types of damages recoverable after your death may vary depending on the circumstances and the nature of the lawsuit. Here’s a breakdown of what your estate and family may seek:
- Medical Expenses: Your estate can claim reimbursement for medical bills incurred as a result of the injuries prior to your death.
- Lost Income: Wages lost due to the injury can be recovered, even if the income would have supported you directly.
- Pain and Suffering: Damages related to the physical and emotional distress you endured before passing may still be part of the claim.
- Wrongful Death Claim: Should your death be directly related to the injuries in question with this lawsuit, then an additional claim by the family for loss of companionship and guidance and possible financial support can be made.
Having a clear will ensures your case and assets are managed without complications. Clear documentation minimizes conflicts or delays among heirs and equips your loved ones with the tools and support necessary to carry on your case. Seeking advice from an attorney safeguards their future and ensures their rights are upheld in your absence.
Can the Settlement Payments be Inherited?
Yes, settlement payments are inheritable, but this totally depends on the type of claim and the terms of settlement. If the settlement is part of a personal injury case, any amount awarded after one’s death may become part of his or her estate. This means they’re distributed according to your will or, if there’s no will, New Jersey’s intestacy laws.
For structured settlements or periodic payments, the terms of the settlement agreement determine whether these payments continue to heirs. Some settlements include clauses that allow for payments to transfer to a spouse, children, or other beneficiaries. If there’s no such clause, the remaining settlement may revert back to the insurer or liable party.
Understanding your settlement terms is vital. For tailored advice on how your settlement will be handled in case of death, reach out to our experienced team.
Ready to Talk About Your Case? Contact Us Today!
If you have questions about what happens to a settlement when a person dies or if you’re navigating a personal injury claim in Paramus, we’re here to help. Contact our team at (201) 588-1500 for trusted advice from attorneys who understand the intricacies of New Jersey law. Let’s work together to protect your rights and your future.
Dawn M. Pinnisi
Dawn M. Pinnisi is a distinguished attorney with a track record of excellence in advocating for victims of injury and negligence. Dawn is a Founding Partner of the Firm, and a member of the Multi-Million Dollar Advocates Forum. Dawn has been recognized as a Super Lawyer, and has received awards from the National Trial Lawyers and Best of the Bar.
University: J.D. Brooklyn Law School
Bar Number: 33771999
Locations: New Jersey and New York.
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