Who Gets the Money From a Wrongful Death Settlement in Colorado?

 Posted on December 22, 2025 in Wrongful Death

Along with grief, families face practical questions about compensation when they lose a loved one due to someone else’s negligence. In Colorado, decisions about who receives the money from a wrongful death claim depend on family relationships and when the claim is filed. Courts follow strict statutory rules, which is why many families choose to speak with a Larimer County, CO wrongful death lawyer early in the process.

What Is a Wrongful Death Claim in Colorado?

A wrongful death claim is a civil case brought when a person dies because of another party’s wrongful act, neglect, or failure to act. These cases are separate from any criminal charges. The focus is on financial responsibility and the losses suffered by surviving family members.

Colorado’s wrongful death law, under C.R.S. § 13-21-201, limits who may bring a claim and who may benefit from a settlement or court award. The law is designed to protect close family members, not distant relatives or unrelated parties.

Who Has the Right To Recover Money After a Wrongful Death in Colorado?

During the first year after a death, the surviving spouse generally has the exclusive right to bring a wrongful death claim. In this specific timeframe, the spouse may choose to include the deceased person’s children, but the children are not automatically included.

After the first year has passed, both the surviving spouse and the deceased person’s children may bring a claim and share in any recovery. If the deceased person did not have a surviving spouse or children, the right to recover may pass to the parents. These rules apply even when family relationships are complicated or strained.

How Is the Settlement Money Divided in a Wrongful Death Case?

Colorado law does not require that wrongful death settlement money be divided equally in every case. How the funds are distributed often depends on who is legally entitled to recover and whether those individuals can reach an agreement.

In many cases, the division reflects factors like financial dependence, emotional loss, and the role the deceased person played in each family member’s life. If family members cannot agree on how to divide the settlement, a court may decide the allocation.

Importantly, wrongful death settlement funds do not become part of the deceased person’s estate as they do in other states. The money does not pass through a will or probate. Instead, it goes directly to the qualifying family members under Colorado law.

What Types of Damages Are Included in a Wrongful Death Settlement?

If you have a valid claim for damages under C.R.S. § 13-21-202, then you should be able to recover certain losses related to the death of your family member. These damages are meant to reflect both financial and personal losses suffered by qualifying family members.

A wrongful death settlement may include compensation for:

• Loss of companionship, care, and emotional support

• Loss of the deceased person’s guidance and presence in the family

• Lost income or financial contributions the person would have provided

• Medical expenses related to the final injury or illness

• Funeral and burial costs

Colorado law limits how much a person can recover for non-economic damages, including grief, pain and suffering, and loss of companionship. For civil cases filed on or after January 1, 2025, Colorado imposes a statutory cap on these non-economic damages for wrongful death claims, which is adjusted for inflation.

How Long Do Families Have To File a Wrongful Death Claim in Colorado?

Deadlines are strict in wrongful death cases. Under C.R.S. § 13-80-102, most wrongful death lawsuits must be filed within two years of the date of death. Missing this deadline usually means losing the right to recover compensation, even if the claim is otherwise valid.

Timing can also affect who has the right to bring the claim. Because rights expand after the first year, waiting too long or filing too early without guidance can create problems. Early legal advice helps families protect their rights and avoid mistakes.

Schedule a Free Consultation With a Fort Collins, CO Wrongful Death Attorney

If your family has questions about who receives money from a wrongful death settlement, Hoggatt Law Office, P.C. can help provide clarity during a difficult time. We help families understand how Colorado’s wrongful death laws apply to their situation and what options may be available. Attorney Hoggatt, a member of the Colorado Trial Lawyers Association, has a strong background in injury-related claims and will pursue the maximum available compensation for you and your family.

Call 970-225-2190 to schedule your free consultation with an experienced Larimer County, CO wrongful death lawyer today. Se Habla Español.