What Is Loss of Future Income in Wrongful Death Cases in Georgia?

Losing a loved one due to someone else’s negligence is life-altering. Along with the emotional trauma, you may also be left dealing with financial hardships. One of the most significant financial aspects in a wrongful death case is the loss of future income. If you are a widow, family member, or close relative of someone who passed away because of another person’s carelessness, read below to become more familiar with lost income damages and other forms of compensation that may be available to you in a wrongful death case in Georgia.

Understanding Wrongful Death in Georgia

In Georgia, a wrongful death occurs when a person dies as a result of another party’s wrongful act, negligence, or criminal behavior. Wrongful death cases can arise from various situations, including car accidents, defective products, and workplace accidents. The purpose of a wrongful death claim is to hold the responsible party accountable and to provide financial compensation to the family members who have suffered as a result.

A wrongful death claim can help compensate the survivors for various losses, including the loss of  the decedent’s future income.

What Is Loss of Future Income?

Loss of future income refers to the earnings the deceased would have likely made had they lived. When someone dies because of someone else’s negligence, their family not only loses the emotional support but also the financial contributions that the deceased would have made in the future. This can include wages, bonuses, retirement benefits, and other forms of income that the deceased would have earned throughout their career.

Calculating this loss is not a simple task. Courts will look at several factors to determine the potential future earnings, including the decedent’s age, work history, education, and the likelihood of future promotions or raises. The purpose of this compensation is to help replace the income the deceased would have contributed to their family, which is now lost because of their death.

How Is Loss of Future Income Calculated?

In Georgia, the calculation of loss of future income in a wrongful death case is a complex process that involves examining multiple factors. Courts generally rely on experts like economists and financial planners to determine the appropriate amount. Several key components go into this calculation:

• Age and Life Expectancy: The age of the deceased at the time of their death is critical in determining how many more years they would have likely worked. Life expectancy and work-life expectancy tables are often used as references.
• Earnings History: The person’s previous income history, including salary, bonuses, and benefits, is used to estimate how much they would have earned had they lived.
• Potential for Raises or Promotions: If the deceased was likely to receive future raises, promotions, or other advancements in their career, this potential is factored into the loss of future income calculation.
• Health and Education: The deceased’s health and education levels also play a role in estimating their future income. A healthy individual with a college degree, for instance, may be expected to earn more over their lifetime than someone without formal education or someone with ongoing health issues.
• Benefits and Retirement Contributions: Non-salary income, like retirement benefits or contributions to pension funds, may also be considered part of future income. This ensures that the family is compensated for the complete financial impact of losing their loved one.

Once these factors are assessed, a financial expert will discount the future earnings to present value, which accounts for inflation and other economic factors, so the awarded compensation accurately reflects the value of the lost income today.

Who Can Claim Loss of Future Income?

In Georgia, the right to file a wrongful death claim is typically limited to specific individuals, and these same individuals are eligible to claim loss of future income. According to Georgia law, the following people have the right to file a wrongful death claim and pursue compensation for loss of future income:

• The surviving spouse.
• If there is no spouse, the children of the deceased.
• If no one else qualifies, the executor or administrator of the deceased’s estate may file the claim.

The financial compensation awarded from the wrongful death claim, including loss of future income, is intended to provide for the family members who were dependent on the deceased. The law recognizes that losing a breadwinner can lead to severe financial strain, so compensation for future earnings can play a critical role in maintaining the family’s standard of living.

Why Is Loss of Future Income Important?

For many families, the loss of future income represents the most significant financial loss associated with a wrongful death. It’s not just the income that the deceased was earning at the time of their death, but all the income they would have continued to provide for years or even decades. This is particularly important when the deceased was the primary breadwinner in the household.

For example, if a young professional with a promising career dies, their spouse and children may lose decades of income that could have been used for living expenses, education, retirement savings, and more. Without compensation for loss of future income, the financial security of the surviving family members could be jeopardized.

Challenges in Proving Loss of Future Income

Proving the value of future income can be one of the most challenging aspects of a wrongful death case. It usually requires detailed financial evidence, expert testimony, and a thorough understanding of economic factors. Insurance companies and defense attorneys may argue that the future income estimate is too high or that the deceased would not have earned as much as claimed. This is why having an expert testify about future earnings projections is often critical in these cases.

Additionally, the deceased may have had non-monetary contributions to the household, such as childcare or household management, which also need to be considered. Though these are not technically part of “future income,” their loss can still have significant financial consequences for the family.

Atlanta Wrongful Death Lawyer

If you have lost a loved one in a wrongful death case, understanding your legal rights is crucial, especially when it comes to complex matters like lost wages and  loss of future income. At Butler Kahn, we have the experience that can make a real difference in wrongful death case. It’s time to get you the compensation you need for the loss of your loved one. Contact Butler Kahn wrongful death attorneys by calling (678) 940-1444 or contacting us online for a consultation regarding your legal rights and options.

Jeb Butler

Jeb Butler’s career as a Georgia trial lawyer has led to a $150 million verdict in a product liability case against Chrysler for a dangerous vehicle design that caused the death of a child, a $45 million settlement for a young man who permanently lost the ability to walk and talk, and numerous other verdicts and settlements, many of which are confidential at the defendant’s insistence. Jeb has worked on several cases that led to systemic changes and improvements in public safety. He has been repeatedly recognized as a Georgia SuperLawyer and ranks among Georgia’s legal elite. Jeb graduated in the top 10% of his class at UGA Law, argued on the National Moot Court team, and published in the Law Review. He is the founding partner of Butler Kahn law firm. Connect with me on LinkedIn