Detailed answer — steps to ensure correct filing and distribution under South Dakota law

South Dakota’s wrongful death statute authorizes a representative to sue for the decedent’s wrongful death for the benefit of certain relatives or other designated beneficiaries. See the South Dakota wrongful death statute: SDCL §21-5-1. In practice, ensuring a settlement is filed correctly and the funds are split as agreed means taking deliberate steps before, during, and after the court submission.

1) Confirm who has authority to settle and distribute

Only the person with legal authority (usually the personal representative or administrator of the decedent’s estate, or a plaintiff designated under SDCL §21-5-1) can bind the estate and request distribution. Confirm who is the appointed personal representative or whether the plaintiff in the wrongful death action has statutory authority to settle. If no representative exists, the court may require appointment before final distribution.

2) Put the allocation in the written settlement agreement

Have the settlement agreement state clearly: the gross settlement amount; attorney fees and how they will be computed; payment of case costs; identification and amounts of any known liens (medical, funeral, Medicare/Medicaid, ER liens); amounts paid to creditors; and a specific distribution schedule or percentages for each beneficiary. Example language: “Net settlement proceeds (after attorney fees and approved lien satisfactions) shall be distributed as follows: 50% to Spouse, 30% to Child A, 20% to Child B.” Signing parties should include the plaintiff representative and all beneficiaries (or their counsel) when possible.

3) Resolve liens and subrogation before asking the court to approve distribution

Identify known and likely liens: hospital bills, health insurer subrogation, Medicare/Medicaid liens, medical providers, and funeral expenses. Attempt to obtain written lien waivers or stipulations resolving the lien amounts. If liens remain unresolved, disclose them to the court and request instructions on how the court wishes to handle them. Medicare and Medicaid have strict procedures and deadlines for asserting their liens; failing to address them can cause later claims against distributed proceeds.

4) Prepare and file the required court papers for approval and distribution

Typical filings in the circuit court where the wrongful death action is pending include:

• Joint or moving party’s motion or petition to approve settlement and proposed distribution.
• Signed settlement agreement and release (file under seal if confidential matters require).
• Proposed order approving the settlement and directing distribution.
• Affidavit of counsel describing the gross and net settlement, attorney fees, costs, and known liens.
• Declarations or consents from beneficiaries, or a certification of service/notice to all interested persons.
• If minors or incapacitated persons are beneficiaries, add documents showing guardian/guardian ad litem appointment and any proposed court-supervised disbursement (e.g., blocked account or structured settlement).

Clear, itemized documents make it easier for the judge to approve the settlement and enter a distribution order that matches your agreement.

5) Give proper notice and obtain necessary consents

South Dakota courts expect notice to all interested parties. Provide beneficiaries with copies of the proposed settlement and the motion to approve. If any potential beneficiary objects, the court will resolve disputes. Get written consents whenever possible and file them with the court to reduce delay.

6) Ask the court to enter a distribution order and final judgment

Do not distribute funds only on the basis of the settlement agreement. Ask the court to enter a final order or judgment that: approves the settlement, authorizes satisfaction of specified liens, awards attorney fees (if the court must approve them), and directs exact distribution of net proceeds. A court order protects the representative and beneficiaries from subsequent claims.

7) Use escrow or a neutral disbursing agent for the closing

Have the insurer or defense counsel wire settlement funds to an escrow account or to the plaintiff’s attorney’s trust account. The disbursing agent should pay approved fees, liens, and court-ordered distributions only after the court signs the approval and after any conditions precedent (for example, signed releases) are met. Keep clear accounting and obtain pay-off releases for liens paid.

8) Obtain written releases and lien satisfactions after payment

After distribution, collect written releases from paid lienholders and beneficiaries. File proof of satisfaction of judgments and liens with the court. If Medicare or Medicaid had a conditional payment, obtain final determination letters or conditional payment satisfaction to avoid future recoupment.

9) Special issues: minors, incompetents, and intestacy

If any beneficiary is a minor or legally incapacitated, the court typically must approve any settlement distribution to protect that beneficiary’s interests. The court may require a guardian, guardian ad litem, or that funds be placed in a blocked account or annuity. If the decedent left no will, distribution among heirs follows intestacy principles; you should confirm whether the wrongful death statute or the court’s order fixes the distribution or whether probate/intestacy rules apply. When needed, ask the court to reconcile distribution under the wrongful death action with probate administration to prevent conflicting obligations.

10) If disputes arise, use motions or deposit funds with the court

If beneficiaries dispute the split or a lienholder makes a late claim, consider filing an interpleader or moving to deposit disputed funds with the court and asking the court to determine proper recipients. Interpleader can protect the settling party from multiple liability when competing claimants exist.

Practical checklist to file correctly and enforce the agreed split

1. Confirm authorized representative and list of beneficiaries.
2. Draft a settlement agreement with clear allocation language.
3. Identify and try to resolve all liens; get written releases.
4. Prepare motion/petition, affidavit of counsel, proposed order, and all consents.
5. File papers in the circuit court where the action is pending and serve all interested parties.
6. Obtain the court’s approval/order before distributing funds.
7. Have funds paid into escrow or attorney trust account pending order.
8. Distribute per court order and obtain releases from payees and lienholders.
9. File proof of distribution and lien satisfactions with the court.

Following these steps makes it far more likely the settlement will be honored and the distribution will match the agreed allocation. Because wrongful death claims often involve competing interests and public programs (Medicaid/Medicare), you should verify all potential subrogation and statutory notice rules before final distribution.

Statute reference: For the statutory authorization of a wrongful death action in South Dakota, see SDCL §21-5-1: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&Statute=21-5-1. If you expect probate or intestacy issues to affect distribution, consult the South Dakota codified laws or an attorney familiar with probate practice.

Helpful Hints

• Get everything in writing. Oral promises about splits lead to disputes.
• Don’t pay out funds until the court signs the order approving the settlement and distribution.
• Keep an itemized accounting of fees, costs, liens, and distributions for the court file and beneficiaries.
• Address Medicare/Medicaid early. They have strict procedures for conditional payments and can seek recoupment.
• If minors are beneficiaries, expect extra court scrutiny and possible requirements for guardianship or blocked accounts.
• Use a neutral escrow agent or the plaintiff attorney’s trust account to receive and disburse funds under the court’s direction.
• If any party objects or a new claim appears, consider depositing the disputed portion with the court (interpleader) to avoid personal liability.
• Ask the insurer to pay pursuant to the court’s order or into an escrow account; obtaining a check to the court or escrow reduces risk of misallocation.
• Consult a local South Dakota attorney for filing forms, required wording, and to draft a proposed order tailored to your court’s practice.