Detailed Answer

When a wrongful death claim in Tennessee resolves, several legal steps must be completed to ensure the settlement is enforceable, filed properly, and paid out to the right people in the right amounts. Below is a practical checklist that explains who must approve a settlement, what documents the court typically needs, and how to protect your right to the agreed split.

1. Confirm Who Can Settle and Receive Proceeds

Under Tennessee law, wrongful death claims are typically brought for the benefit of the decedent’s statutory beneficiaries. A personal representative or properly authorized plaintiff usually signs settlement documents on behalf of the claim. Make sure the person signing the settlement has legal authority to bind the claim (for example, the personal representative appointed by the probate court or a plaintiff acting with the consent of all beneficiaries).

Reference to Tennessee wrongful death statutes and beneficiary rules: see the Tennessee Wrongful Death chapter for governing provisions: Tenn. Code Ann. Title 20, Ch. 5.

2. Get the Settlement in Writing and State the Allocation Clearly

Always reduce the agreement to a written settlement contract that does all of the following:

• Identifies the parties (plaintiff(s), defendant(s), insurer).
• Specifies the total gross settlement amount.
• Specifies how the gross amount is to be divided (e.g., attorneys’ fees, costs, lien payments, net amounts to each beneficiary or to the estate).
• Explains whether distributions reflect percentages, specific dollar amounts, or a sequence (pay liens first, then split remaining funds).
• Includes clear release language describing what claims are being released (wrongful death, survival action, etc.).

3. Address Attorneys’ Fees, Costs, and Liens Before Distribution

Wrongful death settlements often have deductions for attorneys’ fees (typically determined by the client’s agreement with counsel), litigation costs, medical liens, and governmental subrogation (Medicare/Medicaid). The settlement agreement should identify who will be paid, how amounts will be calculated, and whether those amounts will be deducted before splitting the remaining funds among beneficiaries. If you expect federal or state healthcare liens, take steps to confirm amounts and obtain written payoff letters or agreements with lienholders.

4. File the Required Paperwork with the Court

Procedures vary depending on whether the wrongful death action was filed in circuit, chancery, or another court and whether there is a pending probate administration. Typical filings include:

• Joint motion or motion to approve settlement and proposed order for distribution (if the court’s approval is needed or prudent).
• Copy of the written settlement agreement and any proposed form of release.
• Proposed order directing disbursement of funds (showing fees, lien payments, and beneficiary distributions).
• Proof of notice to interested parties and, if minors or incapacitated beneficiaries are involved, filings related to guardians or guardian ad litem appointments.

Rule and local practice can affect what the judge expects. See Tennessee Rules of Civil Procedure and local rules at the Tennessee court website for general procedure: Tennessee Rules of Civil Procedure.

5. Obtain Court Approval When Necessary

Court approval of a wrongful death settlement is not always mandatory, but judges commonly approve settlements to protect minor or unrepresented beneficiaries, to resolve competing claims to proceeds, or when funds must be disbursed from estate/probate assets. When approval is required or advisable, file a motion with a proposed order that explains how the settlement terms protect beneficiaries and complies with Tennessee wrongful death statutes and policy considerations.

6. Use an Escrow or Court-Directed Disbursement Method

To ensure funds are split exactly as agreed, have the paying party issue the check to the party designated in the order (the court clerk, the plaintiff’s counsel’s trust account/escrow, or the estate’s representative) — not directly to individual beneficiaries unless the court directs that method. If there are outstanding liens or disputes, ask the court to direct funds to the clerk of court or to an escrow agent pending lien resolution and final order for distribution.

7. Get a Court Order Directing Distribution and Final Releases

A written court order that says how the funds are to be paid, including the exact amounts or percentages for each recipient after deductions, gives you the strongest protection. That order should also authorize payment of attorneys’ fees, instruct how liens are satisfied, and find the settlement reasonable if required. After distribution, obtain signed receipts and releases from beneficiaries and lienholders to document final resolution.

8. Handle Minors, Incapacitated Beneficiaries, or Competing Heirs Carefully

If minors or legally incapacitated persons will receive part of the settlement, the court may require appointment of a guardian or require funds to be placed in court-approved conservatorship, blocked account, or structured settlement. If heirs disagree over the split, the court may decline to approve the settlement until differences are resolved or may direct a different allocation.

9. Keep a Paper Trail and Final Accounting

Maintain copies of all settlement documents, proposed and final court orders, bank/escrow receipts, lien payoff letters, releases, and beneficiary receipts. If settlement proceeds pass through probate, be prepared to file a final accounting with the probate court showing how funds were disbursed.

10. Common Pitfalls to Avoid

• Verbal agreements — never rely on them for the allocation of settlement proceeds.
• Failing to get lien payoffs in writing — medical and government liens can later reduce your distribution.
• Not confirming the signer’s authority — an unauthorized settlement can be challenged.
• Proceeding without court approval when needed for minors or disputed distributions.

Key Tennessee Statutes and Rules (Starting Points)

• Tennessee Wrongful Death statutes (Title 20, Chapter 5): Tenn. Code Ann. Title 20, Ch. 5
• Tennessee Rules of Civil Procedure (for motions, proposed orders, and court filings): Tennessee Rules of Civil Procedure

If you are unsure whether court approval is required or how to draft a distribution order, consider asking the judge’s clerk for the court’s local form or consult a Tennessee attorney who handles wrongful death or probate matters.

Helpful Hints

• Get everything in writing — settlement terms and exact splits.
• Confirm the person signing has authority (personal representative, all beneficiaries in writing, or court appointment).
• Ask for written lien payoff letters before final distribution.
• Use escrow or a court-directed disbursement if any dispute or lien exists.
• Request a final court order that states exact distribution amounts after fees and liens.
• If minors or incapacitated persons are beneficiaries, expect additional court steps (guardian, conservatorship, or structured settlement).
• Keep copies of receipts and releases from beneficiaries and lienholders once funds are distributed.
• When in doubt, ask the court clerk what local form or filing the judge prefers for settlement approval and distribution orders.

Additional resources:

• Tennessee Code (Title 20, Ch. 5) — wrongful death provisions: https://www.capitol.tn.gov/legislation/title/20/chapter/5/
• Tennessee Rules of Civil Procedure: https://www.tncourts.gov/rules/tennessee-rules-civil-procedure

Disclaimer: This information is educational only and does not constitute legal advice. Laws change and every case has unique facts. Consult a licensed Tennessee attorney to get advice tailored to your situation.