How to Secure Wrongful Death Settlement Proceeds With the Court Clerk in Florida | Florida Estate Planning

Detailed Answer

This FAQ explains how to protect and secure proceeds from a pending wrongful death settlement by using the court clerk in Florida. It summarizes the legal framework, typical steps you or your lawyer will take, and options to keep settlement funds safe while the court and interested parties resolve distributions or liens. This is educational information only and not legal advice.

What law governs wrongful death settlements in Florida?

Wrongful death claims and how damages are recovered and distributed are governed by the Florida Wrongful Death Act (Chapter 768 of the Florida Statutes). For the text of that chapter, see: Florida Statutes, Chapter 768 (Wrongful Death).

Why use the court clerk to secure settlement funds?

Depositing settlement proceeds with the court clerk (the court registry) keeps funds safe and neutral while disputes are resolved, guardianship or probate matters are completed, or liens and subrogation claims are negotiated. The clerk’s duties and the registry’s role arise from the statutory framework governing clerks and court procedures in Florida; see Florida Statutes, Chapter 28 (Clerks of Court).

Common scenarios where you should ask the court to secure funds with the clerk

One or more beneficiaries are minors.
One or more beneficiaries are legally incapacitated.
There are competing claims to the money (e.g., multiple heirs, disputed beneficiary status).
Medical providers, insurers, or government programs assert liens or subrogation claims.
You need time to set up a trust, structured settlement, or guardianship/representative management of the funds.

Typical legal steps to secure settlement proceeds with the court clerk

Have an attorney prepare a stipulation or settlement agreement and a proposed court order. The agreement should explain the settlement amount, the parties, and why the court should approve the deposit (for example, pending lien resolution or because a beneficiary is a minor).
File a motion or notice asking the court to approve the settlement (if required) and to order the clerk to accept the funds into the court registry. Some wrongful death settlements require court approval (or at least court oversight) before final disbursement. The filing typically requests an order directing the defendant or insurer to pay the settlement to the clerk of court and describing how the funds should be held.
Obtain a signed court order that instructs the clerk how to handle the money. The order should say where to deposit the funds (court registry/registry account), any restrictions on disbursement, whether interest will accrue, and the events required for release (for example, a later court order approving distribution or payment to a guardian/trustee).
Have the defendant or insurer pay the clerk according to the court order. The clerk will not accept funds without a proper order or an agreed filing—rules and internal clerk procedures vary by county, so counsel should confirm the clerk’s requirements in that county.
Resolve liens, guardianship/probate, or other issues that block distribution. While funds remain in the registry, you and counsel can negotiate medical liens, obtain Medicare/Medicaid conditional payment reimbursements, set up trusts for minors or disabled beneficiaries, or ask the court to appoint a guardian or personal representative to receive the funds.
Ask the court to enter a final distribution order once issues are resolved. The final order will direct the clerk to pay specific amounts to specific payees (attorney fees, lien payoffs, trusts, beneficiaries, etc.). The clerk will then disburse funds according to that order.

Special situations and Florida-specific rules you should know

Florida’s wrongful death statutes (Chapter 768) control who may bring claims and how damages are allocated among beneficiaries. Review the chapter to understand who has legal standing to claim distributions: Chapter 768.
If a beneficiary is a minor or incapacitated, Florida guardianship law (Chapter 744) may require a guardian of the property or a court-supervised settlement before funds can be spent. See: Chapter 744 (Guardianship).
Clerk procedures differ by county. The clerk’s office follows state statute and local administrative rules. Attorneys typically confirm local registry procedures (acceptable payment forms, required documentation, and how the clerk posts holdings) before instructing a payer to send funds.
Depositing funds with the clerk does not eliminate liens or subrogation claims. You must resolve those claims—by negotiation, settlement, or court ruling—before the clerk disburses net proceeds to beneficiaries.

Practical protections to request in the court order

Explicit direction to pay the settlement to the clerk’s registry and the exact docket number to which the deposit relates.
Instructions that funds be held in a separate, identifiable registry account pending further order.
Instructions about interest: whether interest will accrue and who gets interest.
Clear criteria for release (for example, submission of lien releases or an order approving distribution to a guardian/trustee).
Authorization for the clerk to pay attorney-fee liens or approved invoices directly, if the court orders it.

Alternatives and supplemental protections

Structured settlement annuities: convert a lump-sum into periodic payments to protect long-term needs.
Qualified settlement funds or court-ordered trusts: these may be used to manage funds, especially for minors or beneficiaries with special needs.
Guardianship or probate appointment: when a beneficiary needs a legally authorized fiduciary, the court can appoint one to manage funds once the appointment and distribution order are in place.

What you should gather and be ready to provide

Copy of the settlement agreement and any releases.
Draft or proposed court order directing deposit to the clerk and describing how funds should be held and released.
Documentation of all known liens and subrogation claims (medical providers, insurers, government payors).
Identification and status of beneficiaries (minors, incapacitated persons, or adults).
Contact information for counsel for all parties and the payer (insurance company or defendant).

Typical timeline

Timeline varies. Once the court signs an order and the payer sends funds, the clerk will usually post the deposit to the case and hold the money according to the order. Resolving liens, establishing a trust, or completing a guardianship can take weeks to months depending on complexity. Work closely with counsel to estimate timing for your case.

Costs and fees

The clerk may charge registry handling fees or follow county-specific practices. Court orders can also direct that certain fees be paid from the settlement (for example, attorney fees, lien payoffs, or bond costs). Ask counsel to detail expected charges before you ask for deposit.

When to hire an attorney

Hire a lawyer experienced with Florida wrongful death, probate/guardianship, or settlement administration when funds are at risk from liens, when beneficiaries are minors or incapacitated, or when competing claims exist. An attorney will draft the motions and proposed orders needed to place funds with the clerk and later obtain disbursement orders.

Helpful Hints

Never accept a payer’s unilateral instruction to pay you outside court direction if there are unresolved liens or minors involved. Ask the payer to deposit the funds with the clerk under an agreed order.
Ask your lawyer to prepare a proposed order that is specific about how the clerk should hold and release funds. Clear wording avoids disputes later.
Confirm the county clerk’s registry procedures (acceptable payment methods, account setup, and timing) before instructing payment.
Identify and address all lienholders (medical providers, insurers, Medicare/Medicaid) early. Ask counsel to obtain conditional payment information from Medicare if relevant.
Consider a structured settlement or a court-supervised trust for minors or disabled beneficiaries to prevent misuse of one lump-sum payment.
Keep thorough records: court orders, correspondence, and receipts from the clerk will be necessary at disbursement and for any future audits.
Be cautious about releasing funds without a court order if anyone objects. The clerk typically requires a signed order before it will distribute registry funds.
Ask whether interest on registry funds will be credited and to whom. County rules differ on crediting interest.

Useful Florida statute references (for reading and planning):

Florida Wrongful Death Act: Chapter 768, Florida Statutes
Clerks of court and related duties: Chapter 28, Florida Statutes
Florida guardianship law (for minors and incapacitated persons): Chapter 744, Florida Statutes

Next steps: consult a Florida attorney experienced in wrongful death settlements and settlement administration. Ask the attorney to prepare the appropriate filings and a proposed order directing the payer to deposit funds with the clerk’s registry. Confirm local clerk procedures before any payment is made.

Disclaimer: This article explains general Florida legal concepts and common procedures and is not legal advice. Every case is different. Consult a licensed Florida attorney for advice about your specific situation.