Survival claims belong to the estate and recover the decedent's own pre-death losses. Wrongful death claims belong to statutory beneficiaries for their losses. Settlement of both requires allocating proceeds between them.
Allocation affects creditor rights, liens, and tax treatment.
Alternative Names:
Survival and Death Allocation, Claim Allocation (Death)
Why it Matters?
Allocation determines who actually receives the money and whether creditors and lienholders can reach it, since survival proceeds pass through the estate while wrongful death proceeds typically go directly to beneficiaries. In nursing home cases Medicaid liens are frequently substantial and attach to the estate portion, which gives beneficiaries a strong interest in allocating toward the death claim. Settlement agreements should allocate explicitly and courts often must approve.
Frequently Confused with
Related terms
Frequently asked questions
Why does allocation matter?
Should settlements allocate explicitly?
