Detailed answer — step-by-step checklist under Pennsylvania law

This section explains the practical steps you should take so a wrongful death settlement is filed with the court properly and distributed according to the parties’ agreement. The process in Pennsylvania combines statutory rules for wrongful death claims with basic court practice: document the agreement in writing, resolve liens and fees, seek court approval when needed, and use secure payment and recordkeeping to enforce the split.

1) Know the two different claims and who legally gets what

Two distinct claims commonly arise after a death caused by another: a survival action (claims the decedent could have brought and that belong to the estate) and a wrongful death claim (damages for bereaved family members). Pennsylvania’s Wrongful Death Act controls distribution of wrongful death proceeds; see 42 Pa.C.S. Chapter 83 for statutory rules and beneficiary priorities:
42 Pa.C.S. Ch. 83.

2) Reduce the agreement to a clear written settlement agreement

• Have a written settlement agreement signed by every plaintiff/beneficiary releasing the defendant. The agreement should state gross settlement, attorney’s fees, costs, known liens, and the agreed net distribution to each named beneficiary or the estate.
• Include express language identifying whether the money represents wrongful death proceeds, survival-action proceeds, or both. That affects who can legally be paid and what court approvals (if any) are required.
• Attach a schedule showing how you computed the “net” amount for distribution: gross less attorney fee, litigation costs, taxes (if applicable), medical or subrogation liens, funeral expenses, and any court-ordered costs.

3) Identify and resolve liens, subrogation, and creditor claims before distribution

Medical providers, health insurers, Medicaid, Medicare, and workers’ compensation carriers may assert liens or subrogation rights. Securing written releases, payoff demands, or a court determination on lien amounts prevents later disputes that could undo the agreed split. Consider the risk of unknown creditors if proceeds flow to the estate (survival claims go to the estate and may be subject to probate creditor claims).

4) Determine whether you need court approval

Court approval is common and sometimes necessary to close out the claim and legally bind parties:

• If the case is already pending in a Pennsylvania court, file a joint motion or petition asking the judge to approve the settlement, enter judgment, and order distribution as agreed.
• If any beneficiaries are minors, incapacitated, or under guardianship, the court or the orphans’ court typically must approve distribution and authorize the guardian to accept funds on the minor’s behalf.
• Even when court approval is not strictly required, getting a court order approving the settlement and distribution gives stronger protection against later claims.

5) Prepare the documents the court will expect

Common filings include:

• Petition or joint motion to approve settlement and distribute funds;
• Settlement agreement and fully executed releases;
• Affidavit of counsel summarizing attorney’s fees, costs, and liens; receipts or payoff letters for any lien amounts;
• Proposed order (clear instruction to the clerk/judge on how to disburse funds);
• If survival action funds go to the estate, letters testamentary or letters of administration showing the personal representative’s authority.

6) Use a trusted mechanism for holding and disbursing funds

Typical practice:

• Have the defendant or insurer issue the settlement check to counsel’s IOLTA/trust account or to an agreed escrow agent. Holding funds in trust until the court signs the distribution order protects all parties.
• Do not distribute funds until liens are resolved or the court’s order authorizes distribution. If you distribute early, you risk personal liability if a valid lien later appears.
• Obtain and keep detailed transaction records, canceled checks, and receipts from recipients.

7) Get a court order approving distribution and obtain certified copies

When the judge signs the order, obtain certified copies. Provide the payer (insurer or defendant) with the order so they can clear any remaining releases and remit funds. A certified court order will also enforce the agreed split if a beneficiary later disputes the allocation.

8) Follow up to complete final steps

• Pay attorney’s fees and costs as authorized. Many Pennsylvania contingency agreements require a court review if requested, so be ready to produce the fee agreement and time records if the judge asks.
• Disburse net proceeds to each beneficiary as the order directs (checks, wire transfers). Require signed receipts when beneficiaries accept payments.
• If funds go to a personal representative, ensure they are deposited into the estate account and distributed according to the estate administration rules and the Wrongful Death Act.

9) Keep detailed documentation in case of later challenges

Retain the settlement agreement, releases, payoff letters, court orders, bank records, and receipts. These records prove you followed the agreed split and complied with court orders and lien obligations.

10) When to involve an attorney

Hire a lawyer if any of the following are present:

• Minors, incapacitated beneficiaries, or guardianship issues;
• Competing beneficiary claims or unclear beneficiary status;
• Significant liens, Medicare/Medicaid interests, or disputed subrogation demands;
• Large settlements where missteps would cause substantial loss.

Even if you are representing beneficiaries collectively, an attorney can prepare the petition, proposed order, and release language a court will accept.

Helpful hints (practical tips to protect the agreed split)

• Spell out net splits, not just percentages of gross. Differences over fees and liens cause most disputes.
• Require all beneficiaries to sign the release in the settlement agreement; get notarized signatures when possible.
• Obtain payoff letters for all health-care and lien claims before distribution (Medicare conditional payment demands can arrive later—get a clearance letter or plan to set aside funds to satisfy them).
• Use a trust/escrow account rather than giving the insurer the names of multiple payees; an IOLTA account gives documented chain-of-custody for funds.
• If a beneficiary is a minor, request that the court appoint a guardian ad litem and enter an order approving the settlement to avoid later attack.
• Ask the court for a single disbursement order that identifies payees and amounts and closes the court file when appropriate.
• Before finalizing, double-check beneficiary status against 42 Pa.C.S. Ch. 83 so distributions follow statutory priority if the parties’ agreement conflicts with statutory rights.