Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Illinois to discuss your specific situation.
Detailed Answer
In Illinois, proceeds from a wrongful death claim are treated as assets of the decedent’s estate and then distributed to the decedent’s heirs under the Illinois Probate Act (755 ILCS 5). The process generally follows these steps:
- Obtain a wrongful death judgment or settlement. Under the Illinois Wrongful Death Act (740 ILCS 180/2), any award or settlement for wrongful death must be paid to the personal representative of the decedent’s estate.
- Open a probate estate. The personal representative (executor) files a petition in the circuit court of the county where the decedent lived to admit the will (if any) to probate or to appoint an administrator if there is no will. See 755 ILCS 5/5-1.
- Classify wrongful death proceeds as estate assets. The court treats the wrongful death award or settlement as part of the decedent’s estate under 740 ILCS 180/2. Those funds are deposited into the estate’s bank account alongside other assets.
- Identify heirs under intestate succession (if no valid will). If the decedent died without a will, the estate distributes assets, including wrongful death proceeds, according to the Illinois Probate Act distribution scheme (755 ILCS 5/2-1 and 5/2-2):
- Spouse and Children: The surviving spouse receives the first $100,000 plus one-half of the balance; the decedent’s children share the remaining half equally.
- Spouse Only (no descendants): The spouse receives the entire estate.
- Children Only (no spouse): Children share equally.
- No Spouse or Descendants: Parents inherit equally; if none, then other relatives as listed in 755 ILCS 5/2-2.
For full details, see 755 ILCS 5/2-1: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2010&ChapterID=60
- Distribute estate assets. Once debts, expenses, and taxes are paid, the personal representative distributes wrongful death proceeds according to the heir structure determined in step 4. The distribution must follow the exact shares prescribed by statute.
Key Illinois statutes:
- Illinois Wrongful Death Act: 740 ILCS 180/2 – https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2084&ChapterID=58
- Illinois Probate Act (Intestate Succession): 755 ILCS 5/2-1 and 5/2-2 – https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2010&ChapterID=60
Helpful Hints
- Act promptly: File probate within a reasonable time to avoid delays in distributing funds.
- Gather family information: Prepare a list of next of kin and their birth dates to streamline the heir-identification process.
- Keep detailed records: Track all estate transactions, including receipts of settlement funds and distributions.
- Consider professional help: Consult a probate attorney if the estate is complex or if heirs dispute their shares.
- Review estate claims: Ensure the estate has paid valid debts and expenses before distributing proceeds to avoid personal liability.