Detailed answer — practical, step-by-step guidance

Under Michigan law, wrongful-death recoveries are brought for the benefit of the decedent’s estate and family and are handled through the personal representative or by court order. The primary statute is Michigan’s wrongful-death statute, MCL 600.2922 (see the statute here: MCL 600.2922).

Follow these steps to make sure the settlement is filed correctly and the money is split as agreed:

1. Put the agreement in writing and be specific.

   Every settlement should be a written settlement agreement (sometimes called a settlement and release or a stipulation). That document must state the gross settlement amount, attorney fees, costs to be deducted, lien and subrogation handling, any sums to be withheld pending court approval or lien resolution, and the precise dollar amounts (or percentages) each beneficiary will receive.

2. Identify who has the legal authority to accept and distribute the money.

   Michigan wrongful-death recoveries are generally collected by the personal representative (executor/administrator) of the decedent’s estate or by court order. If a personal representative is already appointed, the settlement should name that person as the receiving party. If there is no personal representative, the parties should explain how the funds will be routed — often via court-approved stipulation or by appointing a representative.

3. Resolve liens, subrogation, and creditors before distribution.

   Medical providers, health insurers, Medicare/Medicaid, and workers’ compensation carriers may assert liens or subrogation claims against settlement proceeds. Obtain written payoff or lien-release letters whenever possible. If liens remain unresolved, include a holdback clause in the agreement or place funds in escrow or a blocked account until liens are cleared.

4. Draft a proposed consent order or stipulated judgment for the court.

   Prepare a short proposed order for the judge that incorporates the settlement terms and directs how the funds will be handled and disbursed. Typical points in the order: approval of settlement, dismissal or entry of judgment, approval of fees/costs, direction that funds be paid to the personal representative or escrow agent, and direction for distribution to named beneficiaries. Filing a proposed order speeds court action and reduces ambiguity.

5. File the stipulation and proposed order with the court and obtain the signed order.

   File the settlement documents, stipulation, and proposed order in the pending case (or open a case if a court order is needed). After the judge signs the order, get a certified/stamped copy or a filed-stamped PDF. Confirm the clerk has entered the order and the docket reflects the court’s entry.

6. Use escrow or the estate account to control funds pending final steps.

   Ask the payer to deliver funds to an escrow account, the law firm trust account, or the estate’s bank account rather than to individual beneficiaries immediately. Escrowing prevents premature distribution if a lien or other claim later appears. When the court order is final and all liens are resolved, disburse funds per the written agreement and court order.

7. Obtain releases and signed receipts from each payee.

   When you distribute funds, get signed releases and receipts from each beneficiary acknowledging they received the stated amount and releasing the payer and settling parties from further liability. Keep copies in the case file.

8. Keep a complete audit trail.

   Retain the signed settlement, stipulation, court order, lien payoff letters, escrow records, bank records of deposit and disbursement, and beneficiary receipts. These documents prove the funds were handled and split as agreed and protect against later disputes.

9. When minors or incapacitated persons are beneficiaries, get court approval or guardianship oversight.

   If any beneficiary is a minor or under guardianship, Michigan courts typically require approval for settlements that allocate money to them, or require funds to be placed in a blocked account, structured settlement, or trust. Ask the court to include protective language or obtain the required guardianship or conservatorship approvals before distribution.

10. Address attorney fees and costs clearly.

    State whether attorney fees are a percentage of the gross settlement or are paid from the net. Have the attorney prepare an itemized statement of fees and costs for court approval if required. If the court must approve the fee, file the fee petition or stipulate the fee in your proposed order.

For background on the wrongful-death statute referenced above, see Michigan’s legislature page: MCL 600.2922. For probate and estate procedures that commonly govern distribution, see the Michigan Courts probate information pages: Michigan Courts — Probate.

Common settlement scenarios and what to do:

• Small claims against an insurer with no dispute: sign written release, stipulate to dismissal and distribution, get court order if required by local practice.
• Pending liens: include a holdback clause and place funds in escrow until lien resolution or court-approved allocation.
• Minor beneficiaries: ask the court to approve the settlement and the method of protecting minor funds (blocked account, trust, or structured settlement).

Helpful Hints

• Always reduce settlement terms to a signed written agreement before money changes hands.
• Request the payer to send funds to escrow, the law firm trust account, or the estate account rather than directly to individuals.
• Get all lienholders’ payoff or release letters in writing before distribution.
• Include precise dollar amounts or exact percentages in the agreement; don’t rely on vague phrases like “split equally” without defining the base (gross vs. net).
• Ask the court for a consent order or stipulated judgment that directs distribution — the court’s written order minimizes later disputes.
• Obtain certified copies of any signed court order; confirm the order is on the official docket.
• If a beneficiary is minor or incapacitated, consult the probate clerk about blocked accounts, guardianship requirements, or court approval forms in your county.
• Keep original records of disbursement: canceled checks, wire confirmations, bank statements showing distributions, and signed releases from payees.
• If a dispute arises about distribution, seek immediate legal help — do not redistribute funds further until the dispute is resolved or the court tells you how to proceed.
• When in doubt, hire or consult a Michigan attorney experienced in wrongful-death settlements and probate distribution to prepare stipulations and proposed court orders.