Texas wrongful death lawsuit: Loss of future earnings

September 23, 2009

In a Texas wrongful death lawsuit, one type of damages the victim’s family may receive is loss of future earnings. Lost future earnings represent the amount of income the victim would have earned if they had lived.

Loss of future earnings is based on the decedent’s work life expectancy. Work life expectancy is different from a person’s life expectancy. For example, it may be determined that a person would likely have lived to age 75 but would have only worked until age 65.

On the most basic level, loss of future earnings is calculated by multiplying the number of years the victim would have continued to work by the victim’s income at the time of their death.

For instance, suppose the victim died at age 30 and was expected to work until the age of 65. Also, at the time of their death, the victim was making $20,000 a year. Loss of future earnings would be 25 x $20,000, which equals $500,000.

However, the courts typically take this amount of money and reduce it to present value. Present value is the amount of money today that is equal to a future payment. Calculating present value involves using a mathematical table to estimate how much today’s dollar would be worth in the future based on an annual interest rate and the number of years the victim was expected to live.

As you can see, determining loss of future earnings in a Texas wrongful death lawsuit can be quite complicated. To ensure that you receive the compensation you deserve, you need a Texas wrongful death lawyer who understands the often complex mathematical formulas involved with calculating loss of future earnings.

The attorneys of Fears | Nachawati are experienced with Texas wrongful death lawsuits and are dedicated to ensuring that their clients are fully and fairly compensated, not just for loss of earnings but for all damages available in Texas wrongful death lawsuits. To receive free legal advice from one of our Texas wrongful death lawyers, email us at info@fnlawfirm.com or call our toll-free number at 1.866.705.7584.



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