Georgia: Ensuring a Wrongful Death Settlement Is Filed and Split Correctly

Disclaimer: This is educational information only and not legal advice. Consult a Georgia attorney for advice about your specific case.

Detailed Answer: How to make sure a wrongful-death settlement is filed and distributed correctly under Georgia law

In Georgia, wrongful-death lawsuits are governed by the Official Code of Georgia Annotated (O.C.G.A.), and the personal representative or authorized parties bring the claim for the benefit of the decedent’s surviving spouse and heirs. See O.C.G.A. sections referenced below for the statutory framework.

To protect everyone’s interests and make sure the settlement is both filed correctly with the court and split the way you agreed, follow these steps:

1. Get a detailed written settlement agreement.

   The agreement should state the gross settlement amount, who will receive payment (payee name or trust), any structured-payment terms, the exact distribution percentages or dollar amounts to each beneficiary, attorneys’ fees and costs, who will pay outstanding liens and subrogation claims, and a broad release of claims. This document is your primary proof of the parties’ agreement.

2. Identify who must approve the settlement under Georgia law.

   Wrongful-death actions are typically brought by a personal representative or by the parties entitled to recover under O.C.G.A. If minors are beneficiaries or if proceeds will be paid into a decedent’s estate, court involvement or probate-court approval may be required. See O.C.G.A. § 51-4-1 for the basic wrongful-death cause of action and related provisions.

3. Resolve liens, subrogation, and government-payor claims before distribution.

   Health insurers, Medicare/Medicaid, and medical providers often assert liens or subrogation rights. Obtain written lien letters and negotiate or obtain payoff agreements in writing. Failure to address liens before disbursement can create personal liability for whoever receives funds.

4. Make the settlement checks payable to the right entity and use an escrow/trust account.

   Have the defendant or insurer issue the settlement draft per the written agreement (for example: payable to the estate or to the claimant and counsel trust account as appropriate). Use a lawyer’s trust account or neutral escrow to receive funds and document all deposits and disbursements with a settlement ledger.

5. Obtain full, signed releases and receipts from each beneficiary when you distribute funds.

   Each beneficiary should sign a written receipt and release showing they received their agreed share. If minors or incapacitated persons are beneficiaries, obtain court-approved releases or guardian/conservator signatures as required by law.

6. File required papers with the court and enter an order or judgment when appropriate.

   If the action is pending in superior court, the parties often file a stipulation of dismissal, a consent order approving distribution, or a petition for approval of settlement and distribution. If a guardian ad litem or probate court approval is needed (for minors or funds going into an estate), seek the court’s written approval and obtain a signed order before disbursing funds.

7. Document attorney fees and costs transparently.

   Georgia contingency-fee arrangements must be reasonable and in writing. The settlement paperwork should show the agreed fee percentage, itemized costs to be deducted, and how the net amount was calculated. When possible, get a court order approving fees if the case circumstances require it.

8. Keep a complete paper trail and produce a settlement ledger.

   Record the gross recovery, each deduction (attorneys’ fees, costs, liens), and each net disbursement. Keep copies of the settlement agreement, releases, lien payoff letters, bank records, and the court docket entry showing dismissal or approval.

9. Consider tax and public-benefit effects.

   Wrongful-death awards can have tax or public-benefit consequences for recipients (for example, impacts on Medicaid eligibility). Advise beneficiaries to consult a tax advisor or elder/benefit counsel before final distribution.

10. Use a neutral escrow or trust for disputed distributions.

    If beneficiaries disagree about splits, consider placing funds into court escrow or a stipulation-based trust pending resolution. This prevents premature payouts and potential personal liability for improper disbursement.

Key Georgia statutory references

• Wrongful-death cause of action and beneficiaries: O.C.G.A. Title 51, Chapter 4. See the Official Code of Georgia Annotated for details: https://www.legis.ga.gov/legal-resources/official-code-georgia-annotated

When to ask the court to sign an order

Ask the court to enter an order if any of these apply: minors or incapacitated persons are beneficiaries; funds are to be paid into an estate or guardianship account; liens or subrogation disputes remain unresolved; or any beneficiary objects to the proposed division. A court order confirming the distribution creates stronger protection against later claims.

Helpful Hints

• Get everything in writing. Verbal agreements make later enforcement difficult.
• Before signing releases, get written lien payoff letters from insurers, hospitals, and Medicare/Medicaid.
• Ask your lawyer for a settlement-disbursement ledger showing how the net amounts were calculated.
• If a beneficiary is a minor, get court approval or create a properly structured conservatorship or trust.
• Don’t disburse funds until you know who is legally authorized to receive them (personal representative, guardian, or the beneficiaries themselves).
• Keep certified copies of any court order approving a settlement or distribution; banks and third parties often require them.
• If multiple attorneys represent different beneficiaries, consider a joint stipulation or court order resolving fee allocation disputes.
• If in doubt, ask the court to sign an order approving the settlement and distribution—it’s often the cleanest protection against later claims.

For precise statutory language and to confirm current law, consult the Official Code of Georgia Annotated through the Georgia General Assembly legal resources: https://www.legis.ga.gov/legal-resources/official-code-georgia-annotated. For case-specific guidance, speak with a Georgia attorney experienced in wrongful-death and probate practice.