What affects lost earnings in wrongful death claims?

On Behalf of | Oct 28, 2024 | Wrongful death |

In a wrongful death case, figuring out lost future earnings is really important for making sure the family gets fair compensation. Lost earnings are the money the deceased would have made to support their family if the accident hadn’t happened. Knowing how to calculate this amount helps families get what they deserve.

Evaluating the person’s earning potential

The first step is to look at the person’s earning potential. This means looking at their current salary, past work history, education, skills, and chances for promotions. Professionals also consider their age and career path to figure out how much money they could have made if their life hadn’t ended suddenly.

Considering future growth and inflation

Another important part is thinking about future growth and inflation. Economists help estimate how much wages would have increased over time. They look at things like cost-of-living changes and trends in the person’s job field that could have affected their future earnings.

Factoring in work-life expectancy

Calculating lost future earnings also means estimating how long the person would have kept working. This depends on factors like their potential retirement age, health, and lifestyle. Work-life expectancy helps determine how long future earnings should be counted.

Deductions for personal spending

The calculation also includes taking out the money the person would have spent on themselves. This makes sure the compensation only covers the financial support that would have gone to the family. Professionals use guidelines to figure out how much of the income would have been used for personal expenses.

Getting professional help

Professionals like economists, financial planners, and forensic accountants often help calculate lost future earnings because it’s a complicated process. Their help makes sure families get fair compensation for the financial loss caused by the wrongful death.

Dealing with a wrongful death claim can feel overwhelming, but knowing how to calculate lost future earnings can make things clearer. With the right information and professional support, families can better fight for fair compensation.