Disclaimer
This article is educational only and not legal advice. It explains general Connecticut procedures and options for holding settlement money with the court clerk or registry. For legal advice specific to your case, contact a Connecticut attorney.
Detailed Answer
When a wrongful death claim in Connecticut is resolved but money must be held while paperwork and approvals are completed, parties commonly ask the court to accept the settlement funds into the court registry (the clerk’s custody) or use other secure mechanisms. Holding proceeds with the court clerk protects the money while distribution issues are resolved, protects minor or incapacitated beneficiaries, and prevents release to a party before required approvals or liens are addressed.
Key legal framework: Connecticut’s wrongful death statute creates the cause of action and governs who may sue and who may benefit from recovery. See Connecticut General Statutes, chapter on wrongful death (e.g., Conn. Gen. Stat. § 52-555). You can read the statute at the Connecticut General Assembly website: Conn. Gen. Stat. § 52-555.
Common steps to secure wrongful death settlement proceeds with the court
- Negotiate a stipulation or settlement requiring deposit to the court registry. Ask the defendant (or their insurer) to issue payment payable to the “Clerk of the Court” (or to the parties jointly with instructions) and to consent in writing that the funds be deposited in the court’s registry pending further court order. Often defendants will agree if asked by plaintiff’s counsel.
- File a motion with the Superior Court. Your lawyer should file a motion (sometimes called a motion to approve settlement and for deposit into registry) asking the court to: (a) approve the settlement (if required by law or if minors/incapacitated beneficiaries are involved); (b) authorize or accept the deposit of settlement funds into the court registry; and (c) set the conditions for withdrawal and distribution (e.g., payment of liens, tax withholding, attorney fees, structured settlement directions).
- Submit required documents to the clerk. Most clerks require a proposed order, a copy of the settlement agreement, the release(s), and an itemized accounting or stipulation showing planned distributions (attorneys’ fees, medical liens, funeral expenses, distribution among beneficiaries). The clerk’s office can tell you the exact format and any forms they require.
- Make the deposit. After the court signs an order or the parties file the required paperwork, the defendant/insurer (or plaintiff if funds are in hand) will deliver the funds to the clerk for deposit into the registry account. The registry holds funds under the court’s control until the court signs an order authorizing withdrawal or distribution.
- Resolve outstanding issues while funds are secure. With funds in the registry, you can: complete probate or conservatorship steps for minor/incapacitated beneficiaries; resolve lien claims (e.g., Medicare, Medicaid, medical providers); obtain a structured settlement or annuity; obtain tax advice if needed; or finalize an agreed distribution order.
- Obtain an order for withdrawal/disbursement. Once the court approves the proposed distribution, it issues an order directing the clerk to pay specified amounts to identified payees. The clerk disburses per that order.
Why use the court registry rather than paying the plaintiff directly?
- It prevents premature release of funds to someone who may not be entitled or who must have a guardian/conservator appointed.
- It protects against claims from creditors, lienholders, or government benefit programs until those claims are resolved.
- The registry provides a neutral, court-supervised holding place that conveys security to all parties.
What the court typically wants to see before accepting funds
- A clear settlement agreement and fully executed releases.
- An order or motion describing how funds will be distributed (attorney fees, costs, liens, payments to beneficiaries).
- Evidence that all necessary parties are represented or have consented (for example, guardian ad litem approval for minors or incompetent persons, if applicable).
- Proof of identity and tax documentation if required by the clerk for disbursement.
Practical considerations and timeline
Timeline varies. If all parties cooperate and the settlement documentation is complete, deposit may occur within days to a few weeks. If the case involves minors, potential lien disputes, or probate conservatorship, the process can take months. Plan for the clerk’s processing time and any hearings the court may schedule to approve a settlement or distribution.
Alternatives and complements to court registry deposits
- Structured settlements / annuities: Convert a portion of proceeds into periodic payments from an insurance annuity. Uses an insurer and avoids keeping all funds in the court registry.
- Qualified Settlement Fund (QSF): A mechanism under federal tax rules (IRC §468B) to hold settlement funds while claims are resolved; typically requires counsel and tax advice.
- Escrow agreement with a bank or title company: Parties can use a private escrow if all sides agree and the escrow meets needs for security and releases.
Costs and interest
The court registry may pay interest or may charge administrative fees. Check with the clerk’s office about rates, account type, and fee schedules. The distribution order should address how interest (if any) will be allocated and who pays clerical fees.
Sample checklist of what to bring or file
- Motion to approve settlement / for deposit into registry and proposed order.
- Executed settlement agreement and releases.
- Stipulation from defendant/insurer consenting to deposit (if available).
- Identification for payees and payee tax forms as clerk requires (W-9s for payees may be requested by clerk).
- List of liens, payoff amounts, and supporting documentation (e.g., medical provider statements).
- If minors/incapacitated persons are beneficiaries, documents showing guardian ad litem involvement or probate filings.
Helpful Hints
- Talk to counsel early about securing funds. Ask that settlement checks be made payable to the clerk or to an escrow with explicit deposit instructions to avoid re-issuing checks.
- Get lien-holder payoff information in writing and current. Unresolved liens are a common reason funds cannot be released promptly.
- If minors are beneficiaries, involve a guardian ad litem or the probate court early. Connecticut courts take special care with settlements for minors.
- Ask the clerk what their specific procedure and forms are. Each clerk’s office may have slightly different requirements for deposit and disbursement.
- Consider tax and benefit impact before distribution. Large wrongful death recoveries can affect taxes and public benefits; consult an accountant or attorney.
- Keep complete records and copies of all filings and receipts from the clerk’s office. Court registry receipts and the court’s disbursement order are primary proof of final distribution.
- If the other side resists depositing funds with the court, consider requesting security (a bond) or using a reputable escrow agent as an alternative.
For the text of Connecticut’s wrongful death statute, see: Conn. Gen. Stat. § 52-555. For procedural questions about the court registry and clerk procedures, contact the Connecticut Judicial Branch or the clerk in the county where the action is pending to learn local requirements.
Again, this is informational only. For steps tailored to your case and to prepare the proper motions and proposed orders, consult a Connecticut attorney experienced in wrongful death and civil procedure.