How you typically receive settlement funds in Minnesota

Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a Minnesota attorney.

Detailed answer — step‑by‑step: what to expect after the insurer issues a check

When an insurance company issues a settlement check, the path that money follows depends on a few key facts: whether you have an attorney, who is listed as payee on the check, whether there are liens or subrogation claims, and whether the claimant is a minor or legally incapacitated. Below are the common scenarios and the typical procedures under Minnesota practice.

1) If you are represented by an attorney

– Payee names: Insurers commonly make settlement checks payable to both the claimant and the claimant’s attorney or to the law firm (for example, “John Doe and Smith Law Office”). When the attorney is a co‑payee, the attorney must receive and process the check.

– Trust account handling: Most firms deposit the check into a client trust account (often called an IOLTA). The attorney will clear the funds, pay authorized liens and case costs, deduct the attorney fee (if agreed), and then issue the net payment to you. Ask your lawyer for a written settlement statement showing gross amount, fees, expenses, liens, and your net.

– Timing: Banks may place temporary holds while the check clears (usually a few business days). If there are medical bills, Medicare/Medicaid interests, or other liens, resolving them can take additional time.

2) If you are unrepresented (you handle your own claim)

– Direct payment: The insurer may issue a check payable only to you. You will need to sign a release form. Review the release carefully — it typically ends your right to pursue the claim.

– Endorsement and ID: The insurer or bank may require you to endorse the check in person and show identification. Expect similar bank hold times as above.

3) Checks payable jointly, to multiple claimants, or to a third party

– Joint payees: If the check lists multiple payees, most banks will require endorsement from all listed payees before honoring the check. If one payee is an attorney, the attorney will normally endorse and manage distribution.

– Liens and subrogation: Health care providers, Medicare, Medicaid, private health insurers, and others may have legal or contractual claims (liens or subrogation) against settlement proceeds. These must be resolved or accounted for before you receive net funds. Your attorney will negotiate or pay liens out of the settlement or explain how they will be handled.

4) Minor, incapacitated, or deceased claimants

– Court approval: Minnesota practice often requires court approval to settle claims belonging to minors or legally incapacitated persons. A court order can direct how settlement funds are held and disbursed. The Minnesota courts oversee guardianship and conservatorship matters; contact the district court or your attorney to learn what filings are needed.

– Conservator/guardian handling: If a guardian or conservator manages the person’s affairs, the court may direct funds into a blocked or supervised account and set rules for withdrawal.

5) Methods of delivery

– Paper check: The most common. After endorsements and bank processing, you or your attorney receives the funds by check.

– Cashier’s check or certified funds: For larger settlements, insurers or banks sometimes issue certified funds or cashier’s checks.

– Wire transfer or direct deposit: Increasingly used for speed. If you expect a wire, confirm bank account details in writing and verify wiring instructions with your attorney to avoid fraud (wiring scams are common).

6) What delays you should expect

• Bank clearing holds (a few business days).
• Time to resolve liens and subrogation demands (days to weeks).
• Need for court approval for minors or incapacitated persons (weeks to months).
• Title issues if the insurer made the check payable to multiple people who must all sign.

7) If a check is not cashed or abandoned

If you don’t claim settlement funds for an extended period, uncashed checks can become unclaimed property under Minnesota law. State rules govern reporting and remittance of unclaimed property. For details, see Minnesota Statutes, Chapter 345 on unclaimed property: https://www.revisor.mn.gov/statutes/cite/345/.

Practical steps you should take now

1. Ask who the check will be made payable to and whether the insurer will send it to you or your attorney.
2. If you have an attorney, request a written settlement statement showing gross settlement, attorney fees, costs, liens paid, and your net payment.
3. If you are unrepresented, read the release before signing. Consider consulting an attorney if the settlement is large or if liens are asserted.
4. Confirm the method of delivery (paper check vs. wire) and any identification or endorsement requirements.
5. Verify any asserted liens (medical, Medicare/Medicaid, health plan subrogation) and get them in writing. Ask how they will be resolved.
6. Watch for possible scams—confirm wiring instructions directly with your attorney or insurer using a phone number you already have.

Relevant Minnesota resources

• Minnesota Department of Commerce — consumer help on insurance: https://mn.gov/commerce/consumers/consumer-help/insurance/
• Minnesota Judicial Branch (general court information and guardianship resources): https://www.mncourts.gov/
• Minnesota statutes on unclaimed property: https://www.revisor.mn.gov/statutes/cite/345/

When to talk to a Minnesota attorney

Consider consulting an attorney if any of the following apply: the settlement is large, multiple payees or liens exist, the claimant is a minor or incapacitated, there is a question about who must sign, or you don’t understand a release. An attorney can explain how liens and fees will affect your net recovery and can help obtain court approval if needed.

Helpful Hints

• Confirm payee names before the insurer issues the check so the insurer doesn’t make it payable in a way that delays payment.
• Get a written settlement breakdown (gross, fees, costs, liens, net) and keep it for your records.
• If your attorney co‑receives the check, insist on receiving your net proceeds in writing and on a timely schedule.
• Be cautious with wire transfers—verify wiring instructions in person or by a trusted phone number to avoid fraud.
• If you suspect a lien is wrong, ask for documentation and challenge it promptly—some liens are negotiable or invalid.
• If you don’t receive your funds after the insurer issued a check, contact your attorney or insurer immediately and, if needed, the Minnesota Department of Commerce to inquire about your claim.

If you want, provide the basic facts of your situation (who the check will be payable to, whether you have counsel, whether there are medical liens, and whether the claimant is a minor) and I can walk through the likely steps and documents you should expect.