Keeping settlement funds safe when a wrongful death case is pending in Massachusetts

Short answer: You can ask the court to order the defendant or insurer to deposit settlement proceeds into the court registry (or require a secured escrow/bond) while the parties sort out distribution, liens, guardianships, or competing claims. In Massachusetts, these steps are typically handled by filing a motion in the case (often under the civil rules governing deposit into court) and obtaining a court order directing the clerk/registry to accept and hold the funds until a judge approves distribution.

Disclaimer: This article explains general Massachusetts procedures and is for educational purposes only. It is not legal advice. Consult a Massachusetts attorney for advice about your particular situation.

Detailed answer — how the process works in Massachusetts

Massachusetts law recognizes wrongful death claims and sets who may bring them and how proceeds are distributed; see the state wrongful death statute at M.G.L. c. 229 (General Laws, Chapter 229). The practical steps to secure proceeds while a settlement is pending are governed by court practice and the Rules of Civil Procedure (and sometimes local court rules or probate rules if minors or estates are involved).

1. Why you might need to secure proceeds

• A settlement is reached but distribution is disputed among heirs or beneficiaries.
• There are likely medical-lien, Medicaid/Medicare, or creditor claims that must be resolved.
• Some beneficiaries are minors or incapacitated persons who need a guardian or conservator before money can be paid out.
• You want the insurer or defendant to pay into a neutral place (the court registry) instead of an individual escrow to reduce risk.

2. Common legal mechanisms to secure funds

In Massachusetts you can use one or more of the following approaches:

• Court-ordered deposit into the registry (registry of the court): File a motion asking the judge to order the insurer/defendant to pay settlement proceeds into the court registry. The registry will hold the funds until the court issues a disbursement order. Many judges will issue such orders when distribution or liens are unresolved.
• Mass. Rules of Civil Procedure — deposit under Rule 67: The Massachusetts civil rules allow parties to deposit money with the court when there is uncertainty about entitlement. See the Massachusetts Rules of Civil Procedure (Rule 67 and related practice) on the Mass.gov rules page: https://www.mass.gov/info-details/massachusetts-rules-of-civil-procedure
• Interpleader or motion for instructions: If the insurer faces competing claimant pressure, the insurer or defendant can file an interpleader or ask the court for instructions and deposit the funds into court to resolve competing claims.
• Probate steps for minors/incapacitated persons: If beneficiaries are minors or incapacitated, you may need to involve the Probate & Family Court to appoint a guardian of property or conservator before funds can be released. See the Probate & Family Court pages for procedures: https://www.mass.gov/orgs/probate-and-family-court

3. Typical step-by-step procedure

1. Identify stakeholders and likely issues. List beneficiaries, possible lienholders (insurers, health-care providers, Medicare/Medicaid), minor/incapacitated beneficiaries, and creditors.
2. Talk to the defendant/insurer and your attorney. Ask the insurer to place the settlement funds either into the court registry or into an agreed escrow pending court order. Insurers often prefer to deposit funds with the court to avoid liability for later claims.
3. Prepare and file a motion. File a motion in the pending wrongful death action asking the court to accept the funds into the registry and to enter instructions for distribution, or to stay distribution pending resolution of liens/guardianship. Cite the civil rule allowing deposit and any local rule. Provide evidence showing why the registry is needed (competing claims, minor beneficiaries, unresolved liens).
4. Provide proposed order and logistics. Attach a proposed court order directing payment to the court registry and specifying who may later request disbursement. Coordinate with the clerk about how the insurer should make the payment (check or wire instructions) and which account the clerk uses for registries in that court.
5. Resolve liens and administrative claims. Use the time the funds are in registry to resolve medical bills, governmental liens (e.g., Medicare/Medicaid subrogation), and tax questions. Often the court requires notice to potential lienholders before disbursing.
6. Obtain a court order for distribution. After the judge approves distribution (often after a hearing or consent order), the clerk issues payment according to the court order.

4. Practical considerations and who handles funds

The registry of the court handles funds under court supervision. The clerk will normally not release funds without a written court order. Funds held in the registry may earn interest depending on the court’s registry procedures; check local practice. The court may require a bond, or hold back attorneys’ fees until distribution instructions are approved.

5. Massachusetts statutes that are relevant

• Wrongful death statute (who may sue, distribution rules): M.G.L. c. 229 — full chapter: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXIX/Chapter229
• Massachusetts Rules of Civil Procedure (procedures that govern deposit of funds with the court and related motions): https://www.mass.gov/info-details/massachusetts-rules-of-civil-procedure
• Probate & Family Court information (guardianships/conservatorships for minors/incapacitated beneficiaries): https://www.mass.gov/orgs/probate-and-family-court

6. Example (hypothetical) — how it often plays out

Facts: A family settles a wrongful death claim for $500,000 with an insurer. Two adult children claim most of the proceeds but the decedent’s minor child will need a guardian of property to receive any share and Medicare may assert a subrogation lien of $25,000.

Action: The family’s lawyer files a motion asking the Superior Court to order the insurer to deposit the $500,000 into the court registry under a proposed order that requires notice to Medicare and the appointment of a guardian of property for the minor. The court grants the order. The insurer deposits funds to the registry. The parties use the registry period to resolve the Medicare lien and have the Probate Court appoint a guardian for the minor. Once lien resolution and guardianship are settled, the civil court orders distribution and the clerk issues payments according to that order.

7. Common delays and pitfalls

• Not identifying all potential lienholders (Medicare/Medicaid, ERISA plans, private-pay medicals) can delay distribution.
• If a beneficiary is a minor or incompetent, failing to involve Probate & Family Court will block release of funds intended for that person.
• Improperly drafted orders or failing to coordinate with the clerk about payment mechanics can cause the insurer to resist depositing funds.
• Some courts require a hearing before accepting a large deposit; expect scheduling delays.

Helpful Hints

• Start by hiring an attorney experienced in wrongful death and probate practice in Massachusetts — they can draft the motion, coordinate with insurers, and handle lien resolution.
• Ask the insurer to pay into the court registry rather than to individual counsel’s client trust account if there is any dispute about distribution.
• Identify and notify potential lienholders early (medical providers, Medicare/Medicaid, ERISA plans). Federal law requires some coordination when Medicare is involved.
• If minors are involved, open guardianship/estate proceedings in Probate & Family Court as soon as possible to avoid delay in distribution.
• Provide the court with a clear, proposed distribution order and language about who is authorized to apply for disbursement after lien resolution.
• Expect the court to require proof of notice to interested parties before releasing funds and to insist on judicial approval for attorneys’ fees or large disbursements.
• Keep records: receipts, lien letters, correspondence with insurers, and court orders. The registry will require clear documentation before releasing funds.
• Be aware of deadlines: some liens or claims may have statutory notice windows; missing them can complicate matters.

When to get a lawyer

If the settlement is contested, beneficiaries include minors or incapacitated people, or there are likely government or third-party liens (Medicare/Medicaid, ERISA health plans), you should consult a Massachusetts attorney promptly. An attorney can prepare the necessary motion, represent you at any hearing, and coordinate with the Probate Court if guardianship or conservatorship is needed.

Final note: The court registry is a commonly used and effective tool to protect settlement proceeds while distribution issues are resolved. Correct procedure, timely notice to claimants, and coordination with probate processes make the path smoother and reduce the risk of future disputes.