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A person’s estate can pursue legal action for many claims far into the future

by Legacy Plan
November 12, 2024

When someone dies, their estate becomes a distinct legal entity capable of both owing debts and pursuing legal claims. The landscape of estate litigation encompasses numerous legal rights and responsibilities that persist beyond death, allowing estates to seek justice and compensation in various circumstances. As part of comprehensive estate planning, estate administrators or executors assume fiduciary duties to protect these interests, including initiating or continuing lawsuits when appropriate.

What legal claims can an estate file?

After death, estates can pursue multiple types of legal actions to protect the deceased's interests and recover compensation for losses. Common claims include wrongful death suits, medical malpractice cases, property disputes, contract violations and identity theft. The estate administrator acts as the legal representative, making decisions about pursuing these claims while fulfilling their fiduciary duties to beneficiaries.

The scope of potential claims extends beyond obvious cases to include complex business disputes, intellectual property matters and even ongoing employment issues. Each type of claim carries specific requirements and considerations that administrators must carefully evaluate when deciding whether to pursue legal action.

What is a wrongful death claim?

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Wrongful death represents one of the most significant types of estate litigation. These cases arise when death results from another party's negligent or intentional actions. Estates often pursue claims against health care providers for medical errors, companies for defective products or individuals for intentional acts leading to death.

The Darcel Edwards case in Indianapolis illustrates the complexity of wrongful death claims. Edwards was shot and killed by Indianapolis Metropolitan Police Department Officer Gunnar Gossett on October 24, 2023, following a traffic stop and subsequent pursuit, according to a Fox News report. Edwards, who was unarmed, was in a tree when shot and died two days later in the hospital. Exactly one year after the incident, before the expiration of the statute of limitations, Edwards' estate filed a civil lawsuit against the police department and city, seeking accountability for alleged excessive force and evidence tampering.

Wrongful death claims require extensive documentation, expert testimony and careful calculation of damages including lost future earnings, medical expenses, and family impact. Success often depends on establishing clear causation between the defendant's actions and the death.

When can a medical malpractice claim over a death be filed?

Medical malpractice claims can either continue from before death or initiate after death when evidence of negligence emerges. The process requires proving the health care provider failed to meet established standards of care and that this failure directly contributed to death or injury. An Iowa case exemplifies the potential for substantial recovery, where a jury awarded $1.6 million to an estate after determining medical negligence contributed to death following spinal surgery. These claims require proving the health care provider failed to meet established standards of care and that this failure directly contributed to death or injury.

In the Iowa case, Steve Schwarz underwent spinal surgery at the University of Iowa Hospitals in March 2020. After the surgery, he was discharged for recovery, and Dr. Michelle Sprengelmeyer was assigned as his treating physician. The lawsuit alleged that the doctor failed to follow the hospital's order for Schwarz to continue antibiotics treatment targeting an MRSA infection, according to a WQAD report. The untreated infection eventually turned lethal, leading to Schwarz's death in July 2020. The jury determined that negligence resulted in Schwarz's death.

Do personal injury claims end if the person dies?

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Personal injury claims often survive the injured person's death, allowing estates to pursue compensation for injuries sustained before death. These claims can include recovery for medical expenses, lost wages and pain and suffering experienced before death. The estate steps into the deceased's legal position, maintaining the right to continue or initiate such claims within applicable statutes of limitations.

This continuation of claims ensures that defendants cannot escape liability simply because the injured party died. Claims may include workplace injuries, vehicle accidents, product liability cases or other situations where negligence caused harm before death.

Can an estate file a claim involving a property or contract dispute?

Property and contract disputes form another significant category of estate claims, including real estate conflicts, business agreement disputes and intellectual property matters. In early 2024, a case involving the estate of Marion Barry, the late mayor of Washington, D.C., and &pizza, a pizza chain, demonstrated how estates can protect posthumous publicity rights. The dispute arose when &pizza launched a menu item called "Marion Berry knots" with an ad campaign that appeared to reference Barry's 1990 drug arrest, according to a WTOP report. The company used Barry's likeness – protected under posthumous right of publicity laws – a decade after his death without authorization to promote their product, which caused public outrage and led to a boycott of the chain. The estate threatened legal action, alleging the campaign caused reputational and economic harm to the Marion Barry Jr. Legacy Foundation. Cora Masters Barry, Barry's widow and executor of his estate, claimed she experienced emotional distress and personal humiliation due to the incident, leading to demands that the company cease and desist from using Barry's likeness. As a result, the company removed the item from the menu and issued an apology.

Is identity theft an estate planning issue?

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Identity theft has emerged as one of the most challenging threats facing estate administrators, with criminals increasingly targeting deceased individuals for various forms of fraud. Known as "ghosting," this type of identity theft often goes undetected longer than typical identity theft because the deceased cannot monitor their own accounts or credit reports. Estate administrators must implement robust preventive measures while maintaining readiness to pursue legal claims when fraud occurs.

Deceased identity theft manifests in several distinct forms. Financial fraud involves criminals opening new credit accounts, accessing existing financial accounts or taking out loans in the deceased's name. Tax-related schemes typically involve filing false returns to claim refunds before the estate can complete legitimate filings. Medical identity theft results in fraudulent charges to insurance or Medicare, while Social Security benefit theft involves diverting ongoing payments or claiming new benefits under the deceased's identity.

A high-profile example of post-death identity theft emerged in 2019 when criminals targeted the estate of Microsoft co-founder Paul Allen, who died in 2018. According to court documents and media reports, a U.S. Army veteran attempted to steal Allen's identity by making changes to his bank accounts shortly after his death. The scheme was discovered when the perpetrator attempted to make a $15,000 purchase using an illegally obtained debit card. This case highlighted both the audacity of identity thieves targeting prominent estates and the importance of quick action by estate administrators to secure accounts and detect fraudulent activity.

When identity theft occurs, estates retain legal standing to pursue various remedies. Civil litigation can seek recovery of fraudulent charges, statutory damages under consumer protection laws and compensation for administrative costs incurred addressing the theft. Criminal prosecution may provide additional avenues for restitution, though estates must often pursue separate civil claims to ensure full recovery.

What other kinds of legal claims continue after a person's death?

Employment-related claims, including discrimination, wrongful termination or unpaid wages, are some other types of claims that can continue through estate litigation. If the deceased person had pending employment claims or violations were discovered after their death, the estate may pursue these matters to recover compensation owed to the deceased.

Consumer protection claims allow estates to seek remedies for various unfair business practices, fraud or deceptive conduct affecting the deceased before death or the estate after death.

Estates may also pursue claims involving:

  • Insurance disputes over policy benefits or claim denials.
  • Environmental damage to estate property.
  • Professional malpractice by attorneys, accountants or other advisors.
  • Civil rights violations.
  • Breach of fiduciary duty.
  • Fraud or misrepresentation in business dealings.

What are the estate administrator’s responsibilities regarding claims?

Estate administrators shoulder significant responsibilities in managing claims both by and against the estate. Their primary duty involves evaluating and pursuing potential legal actions benefiting the estate, requiring thorough investigations, documentation gathering and legal consultation.

Administrators must secure and preserve estate assets while managing potential claims, implementing security measures and monitoring for fraud. This includes protecting against identity theft through credit monitoring, account management and prompt response to suspicious activity.

The evaluation process requires systematic consideration of evidence strength, potential recovery value, litigation costs and timeline impact on estate administration. Administrators must balance beneficiary interests against litigation benefits while considering defendants' ability to pay judgments.

Statutory deadlines critically influence claim evaluation and pursuit. Most jurisdictions provide tolling provisions when potential plaintiffs die, temporarily pausing limitation periods during initial estate administration. Discovery rules can extend deadlines when evidence emerges post-death, particularly in medical malpractice cases where negligence appears during post-mortem examination.

Throughout the administration process, administrators must maintain accurate records of all claim-related activities, decisions and communications. This documentation proves crucial for defending their actions if questioned and supporting any legal proceedings. Regular communication with beneficiaries about claim status and decisions maintains transparency and fulfills fiduciary obligations.

Conclusion

The ability to pursue legal claims remains a vital aspect of estate administration, providing mechanisms for protecting decedents' rights and interests beyond death. From wrongful death and medical malpractice to identity theft and property disputes, estates possess broad legal standing to seek justice and compensation. Success in managing these claims requires estate administrators to balance multiple responsibilities while maintaining vigilant attention to procedural requirements, deadlines, and fiduciary duties. As demonstrated by cases making headlines, effective claim management can significantly impact an estate's value and ability to fulfill the deceased's wishes. Understanding available claims, evaluation criteria and administrative responsibilities helps ensure proper protection of estate interests and beneficiary rights throughout the administration process.

How do I create an estate plan?

There are numerous options and scenarios to consider when developing an estate plan that protects your legacy and achieves your objectives, and important decisions should be made with the advice of qualified lawyers and financial experts. Membership with Legacy Assurance Plan provides members with valuable resources and guidance to develop comprehensive estate plans that take life's contingencies into consideration and leave a positive impact for generations to come. Legacy Assurance Plan members also receive peace of mind that a team of trusted, experienced professionals will assist them in developing legal, financial and tax strategies that will meet their needs today and for years to come through periodic reviews.

This article is published by Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at legacyassuranceplan.com.

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Email - info@legacyassuranceplan.com
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