How to Secure Wrongful Death Settlement Proceeds Through the Clerk of Court in South Carolina

Short answer: In South Carolina, you can ask the court to accept and hold settlement proceeds in its registry (through the clerk of court) by filing a motion and proposed order approving the settlement and directing deposit. Because wrongful death actions in South Carolina are governed by state statute and often involve multiple beneficiaries or minor heirs, the court usually must review and approve how proceeds are distributed. This article explains how that process generally works, what paperwork is typically required, and common obstacles to expect. This is educational information and not legal advice.

Disclaimer

This is not legal advice. I am not a lawyer. The material below explains general practices under South Carolina law and common court procedures. Your case may have special circumstances. Consult a licensed South Carolina attorney for advice tailored to your situation.

Detailed answer: securing proceeds from a pending wrongful death settlement

1. The legal framework you should know

Wrongful death actions in South Carolina are statutory. The cause of action, who can bring it, and how damages are measured and distributed are set out in the South Carolina wrongful death statutes. See Title 15, Chapter 51 of the South Carolina Code of Laws for the governing provisions: https://www.scstatehouse.gov/code/t15c051.php (for example, review sections such as §15-51-20 and §15-51-40 on the nature of the action and distribution). Because the action and distribution are statute-driven, courts supervise settlements, especially when minors, incapacitated persons, or multiple claimants are involved.

2. Why deposit settlement funds with the clerk of court?

• Protection from creditors or competing claimants while the court resolves distribution.
• The clerk’s registry is a neutral place for funds while parties await court approval or while liens/subrogation claims (Medicaid, health insurers, ERISA) are resolved.
• The court can issue clear disbursement orders so banks, insurers, and others know whom to pay.

3. Who can ask the court to hold the funds?

Usually the plaintiff (often the personal representative or the attorney representing the wrongful death claim) files the motion. Any party with an interest in the funds — a beneficiary, guardian ad litem, or the defendants who are paying the settlement — can also request deposit in the court registry.

4. Typical steps to secure proceeds by depositing them with the clerk

1. Obtain the written settlement agreement and any releases signed by the parties.
2. Prepare and file a motion to approve settlement and to deposit funds in the court registry (clerk of court). The motion typically asks the court to: (a) approve the settlement (if required under statute), (b) authorize the defendants/insurer to pay the settlement into the court registry, and (c) enter an order directing how the clerk should hold and disburse funds.
3. Attach supporting documents: settlement agreement, affidavit from personal representative (if applicable), proposed distribution schedule, and a proposed order for the judge to sign.
4. Serve the motion and proposed order on all interested parties and any known lienholders (medical providers, Medicare/Medicaid, insurers). If minors are involved, the court may require a guardian ad litem or a hearing to protect the minor’s interest.
5. If the court signs the order, the defendant/insurer typically deposits the check or wire into the clerk’s registry per the order. The clerk will then hold the funds under the court’s control pending further order.
6. After liens, costs, attorney fees, and distribution questions are resolved, the court issues an order directing the clerk to disburse the funds to the proper parties or accounts.

5. What documents and information will the clerk or judge want?

• Settling parties’ names and counsel contact information.
• The settlement agreement and complete release language.
• Motion and proposed order asking the court to accept the settlement and to direct deposit into the registry.
• Proof of authority of the person who brought the action (e.g., letters of administration or appointment of a personal representative if a probate estate exists).
• Proposed distribution schedule identifying beneficiaries and suggested breakdown of funds (attorney fees, costs, liens, net to beneficiaries).
• Information on known liens or subrogation claims (medical liens, Medicaid/Medicare, health plan subrogation). Courts will often require notice to these claimants before approving a disbursement plan.

6. Common issues that delay or complicate registry deposits

• Unresolved liens or subrogation claims (Medicaid has a statutory right of recovery; private insurers may assert ERISA or subrogation claims).
• Multiple possible beneficiaries who disagree about distribution.
• Minor beneficiaries: the court will ensure minors’ funds are protected, which may require establishing a guardianship, custodial (UTMA-type) account, or court-approved blocked account.
• Probate issues: if the decedent had an estate open in probate, the interaction between probate administration and wrongful death proceeds can create delays.
• Documentation gaps: missing settlement paperwork, lack of appointment papers for the personal representative, or incomplete lien releases.

7. Practical alternatives and protections

• Escrow or blocked bank account: insurers or defendants sometimes place funds in a neutral escrow while parties resolve disputes instead of using the court registry.
• Structured settlements: if appropriate, a portion of proceeds can be converted to long-term payments (annuity) to protect beneficiaries, especially minors.
• Guardianship or custodial accounts for minors: the court may prefer these instead of immediate lump-sum distribution.
• Stipulated orders protecting the funds from specific lienholders until adjudication.

8. Costs, time frame, and what the clerk does with the funds

The clerk of court will usually deposit the funds into an interest-bearing registry account and follow the court’s order about disbursement. The clerk may have administrative fees; the judge’s order should address who pays fees and whether interest is credited to the parties. Time frames vary: if the motion is uncontested and paperwork is in order, deposits can occur quickly; contested lien or distribution disputes can take weeks to months to resolve.

9. Tips for minimizing delay and protecting proceeds

• Identify and notify known lienholders early; obtain written statements from hospitals, providers, and insurers about outstanding balances.
• Provide clear proposed distribution schedules and documentation of attorney fees and expenses.
• If minors are beneficiaries, propose a safe option (guardianship, custodial account, or structured settlement) and include that proposal in your motion to speed approval.
• Ask the court to approve payment into the registry and to enter a follow-up schedule for resolving any disputed claims to the funds.

10. Next steps: how to find help

If you have a pending wrongful death settlement and want to secure proceeds through the court registry in South Carolina, consult with a South Carolina civil attorney experienced in wrongful death and settlement approval. An attorney can prepare the necessary motion and proposed order, identify and negotiate lien issues, and represent parties at any required hearing. If cost is a concern, ask local bar associations for referrals or pro bono resources.

Helpful Hints

• Read the South Carolina wrongful death statute: Title 15, Chapter 51 — https://www.scstatehouse.gov/code/t15c051.php
• Put lienholders on notice as early as possible; unresolved lien claims are the most common delay.
• If beneficiaries include minors, propose a court-approved mechanism for holding their share to avoid extra hearings.
• Provide the court with a single, clean proposed order directing the deposit and identifying who may later apply for disbursement.
• Ask the clerk or your attorney how registry funds are managed locally (interest, fees, required forms) because practice can vary by county.
• Consider alternatives (escrow, structured settlement) if the registry process will cause unreasonable delay and the parties agree.
• Document everything: keep copies of settlement agreements, motions, signed orders, and proof of any payments into the registry.

For legal representation or questions about your specific case, contact a licensed South Carolina attorney who handles wrongful death matters. They can file the required motion, protect beneficiary interests, and work to resolve liens so the clerk can release funds per court order.