Under the net accumulations approach, damages equal projected earnings less the decedent's personal consumption and taxes, representing the estate the decedent would have accumulated.
It contrasts with the loss to survivors approach measuring support provided.
Alternative Names:
Net Accumulations, Accumulations Approach
Why it Matters?
Which method applies determines the calculation entirely, and states divide between net accumulations, loss of support, and hybrid approaches. Net accumulations frequently produces lower figures for decedents who consumed most of their income, which is the typical pattern. Personal consumption percentage is the contested input, and plaintiff economists apply lower deduction rates than the household expenditure literature supports.
Frequently Confused with
Related terms
Frequently asked questions
How does net accumulations differ from loss of support?
What input is contested?
