Securing Wrongful Death Settlement Proceeds Through the Court Clerk in Tennessee

Disclaimer: This article explains general Tennessee law concepts and common procedures. It is educational only and not legal advice. Consult a licensed Tennessee attorney about your specific case.

Detailed Answer: How to secure wrongful death settlement funds with the court clerk in Tennessee

When a wrongful death claim in Tennessee is resolved but the settlement check has not yet been paid out, parties sometimes ask the court to hold the money so it stays safe while the court reviews distribution issues, protects minors or unborn beneficiaries, resolves competing claims, or awaits payoff of liens. The basic options and steps commonly used in Tennessee are explained below.

1. Confirm whether court approval or supervision is required

Tennessee law regulates who may bring a wrongful death action and how damages are to be distributed (see Tennessee Code, Title 20, Chapter 5). Depending on the identity and age of beneficiaries and on the settlement terms, a trial court may need to approve the settlement or supervise distribution. For a general overview of the wrongful death statute, see: https://wapp.capitol.tn.gov/apps/tncode/sections.php?title=20&chapter=5.

2. Ask the defendant/insurer to deposit funds into the court registry or into a jointly-controlled escrow

If you want the funds secured pending approval or final distribution, the usual first move is to obtain a court order directing the defendant or insurer to deposit the settlement check with the clerk of the court (the court’s registry) rather than pay the plaintiff or counsel directly. Tennessee follows civil procedure rules that allow parties to deposit funds with the court while a dispute or approval process runs (see Tennessee Rules of Civil Procedure; deposit procedures are explained on the Tennessee courts rules page: https://www.tncourts.gov/rules). Courts may also accept funds from insurers or defendants directly when an order authorizes such deposit.

3. File a short motion and proposed order to deposit and protect the funds

Typical filings include:

• A motion asking the judge to (a) approve the settlement or (b) direct the insurer to deposit the settlement check with the clerk pending further court orders.
• A proposed order identifying the case number, payee, amount, and the clerk of court as the recipient of the funds or directing the insurer to issue the check payable to the clerk/registry.
• Attachments such as the settlement agreement and draft distribution schedule or a statement explaining why the court’s custody is necessary (e.g., minor beneficiaries, competing claimant, unresolved liens).

4. Clerk’s procedures and how the registry works

Once a judge signs an order, the clerk typically accepts the funds and places them in the court registry. The clerk’s office will have local procedures for accepting a check, assigning a registry account, and handling interest or administrative fees. Many clerks deposit registry funds into an interest-bearing account and charge a small administrative fee. Local clerk procedures vary; contact the clerk in the county where the case is pending or direct counsel to do so. See general court clerk information here: https://www.tncourts.gov/court-clerks.

5. Special considerations for minors, unborn children, or incapacitated beneficiaries

If any beneficiary is a minor or otherwise incapacitated, Tennessee courts commonly require extra protections before distribution—often appointing a guardian ad litem, ordering structured settlement/annuity, or directing deposit into a blocked account or guardianship/probate estate. In such cases, the court may hold funds until it appoints a fiduciary or approves a settlement plan that protects the minor’s interests.

6. Dealing with competing claims, liens, or third-party creditors

Medical providers, Medicare, Medicaid, or other lienholders may claim part of the proceeds. When such claims exist or when multiple beneficiaries dispute distribution, a party can ask the court to keep the funds in the registry until the court resolves the disputes or approves a distribution plan. Sometimes claimants are required to file proofs of claim and the court schedules a hearing to determine allocation.

7. How funds are finally released

After the court approves the settlement and resolves any issues (like lien resolution, appointment of a guardian ad litem, or approval of structured payments), the court will enter an order directing the clerk to distribute funds according to the order. The clerk will then issue checks or wire funds as the order directs and as local registry procedures permit.

8. Practical variations (escrow checks, attorney trust accounts, interpleader)

Alternatives to depositing with the clerk include using an escrow or settlement trustee, an attorney trust account (IOLTA or blocked lawyer trust account), or initiating an interpleader action if multiple parties compete for the funds. These alternatives can sometimes move faster or be more flexible than registry deposit, but they require agreement or court direction.

9. When to involve counsel

Because wrongful death settlements often involve multiple claimants, special protections for minors, and lien resolution, a Tennessee-licensed attorney can draft the motion and proposed order, communicate with the insurer, and follow local clerk procedures to ensure funds are accepted and properly handled. If you represent a beneficiary without counsel, consider at least consulting a lawyer before asking the court to accept funds.

Helpful Hints

• File a concise motion and a proposed order asking the judge to direct the insurer to pay funds into the court registry so the clerk can hold them until distribution is approved.
• Attach the settlement agreement and a proposed distribution plan to the motion so the judge sees how you propose to divide the funds.
• Identify minors or incapacitated beneficiaries early. The court will usually require appointment of a guardian ad litem or other protections before releasing funds to them.
• Expect the clerk to have local rules for registry deposits (forms, accepted payee names, fees). Call the clerk’s office or have counsel check the clerk’s website before directing a payment.
• Ask the insurer to make the check payable to the court clerk or to the plaintiff and the clerk jointly—this reduces the chance the payer will prematurely release funds to the wrong party.
• Resolve known lienholders in writing where possible; bring evidence of lien negotiation or lien payoff proposals to the court to speed approval of distribution.
• Consider whether a structured settlement or annuity benefits vulnerable beneficiaries; courts often favor arrangements that protect long-term interests of minors or incapacitated people.
• If multiple claimants will contest distribution, consider asking the court to order an interpleader or to schedule a single hearing to resolve allocation issues.
• Remember tax and public benefits consequences—consult a tax professional and counsel experienced with settlement distributions in Tennessee.

Key Tennessee Resources

• Tennessee wrongful death statute (Title 20, Chapter 5 overview): https://wapp.capitol.tn.gov/apps/tncode/sections.php?title=20&chapter=5
• Tennessee Rules of Civil Procedure and related court rules (general rules and access to Rule 67 deposit procedures): https://www.tncourts.gov/rules
• Tennessee court clerks information (local clerk offices and contact points): https://www.tncourts.gov/court-clerks

If you want, I can outline a sample motion and proposed order tailored to a generic Tennessee wrongful death settlement (for example: insurer to deposit $X with the clerk pending approval and appointment of guardian ad litem). Would you like that sample?