[[{"@context":"http:\/\/schema.org","@type":"Answer","name":"Answer Question","text":"You might expect that someone\u2019s will would dictate who gets the money from a wrongful death lawsuit and how much each eligible heir receives. However, that\u2019s not the case in Alabama. Regardless of whether someone has a valid will or not, any money from a wrongful death claim is distributed according to strict formulas found in Alabama\u2019s intestate succession laws.","@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Answer Question1","text":"According to the state's succession laws, any money from an Alabama wrongful death settlement goes directly to the deceased\u2019s heirs. This compensation does not go through the usual probate process. The deceased\u2019s personal representative usually oversees this process with help from their legal team.","@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer1"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Answer Question2","text":"Creditors cannot claim any compensation from a wrongful death settlement to pay the deceased\u2019s outstanding debts. The only compensation available in a wrongful death claim is punitive damages, which aim to penalize the liable party for their wrongful acts that caused the deceased\u2019s fatal injuries or illness. It would not be fair or just to allow creditors to claim this compensation, particularly when the deceased\u2019s family is grieving and likely needs the money for funeral bills and other expenses.","@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer2"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Answer Question3","text":"Wrongful death settlements are not taxable in Alabama. In general, IRS guidelines say the money from a personal injury settlement (including wrongful death settlements) is not taxable income. That\u2019s because most of the money from a personal injury settlement is usually considered compensatory damages meant to make the victim whole after an injury. So, this money is not \u201cincome\u201d in the traditional sense.  However, Alabama does not allow compensatory damages in wrongful death cases. Instead, it only allows punitive damages \u2013 which the IRS usually considers taxable income. Fortunately, the IRS recognizes the unique nature of Alabama law and typically does not tax the money from a wrongful death lawsuit. If you have questions about the potential tax implications of a wrongful death settlement, consult an Alabama wrongful death attorney.","@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer3"},{"@context":"http:\/\/schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"How Is the Money Distributed in an Alabama Wrongful Death Claim?","acceptedAnswer":{"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer"},"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Question"},{"@type":"Question","name":"How Are Wrongful Death Settlements Paid?","acceptedAnswer":{"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer1"},"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Question1"},{"@type":"Question","name":"Can the Deceased\u2019s Creditors Claim Money from the Settlement to Pay Debts?","acceptedAnswer":{"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer2"},"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Question2"},{"@type":"Question","name":"Are Wrongful Death Settlements Taxable?","acceptedAnswer":{"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Answer3"},"@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#Question3"}],"name":"Who Gets the Money in a Wrongful Death Settlement in Alabama?","@id":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#FAQPage"}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.gartlaninjurylaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Who Gets the Money in a Wrongful Death Settlement in Alabama?","item":"https:\/\/www.gartlaninjurylaw.com\/blog\/who-gets-money-in-wrongful-death-settlement-in-alabama\/#breadcrumbitem"}]}]