Detailed answer — securing settlement proceeds through the court clerk (New York)

Short answer: In New York, you typically secure proceeds from a pending wrongful death settlement by obtaining a court order that directs the defendant (or its insurer) to pay the settlement into the court registry or to a specifically approved escrow, guardian, or trustee. Whether the court must approve the settlement and how the funds are held and later distributed depends on who the intended beneficiaries are (adults, minors, incapacitated persons, or an estate) and on any competing claims.

Who can recover and who decides distribution

Wrongful death recoveries in New York are governed by the Estates, Powers & Trusts Law (EPTL). The statute that governs distribution of wrongful death proceeds identifies the persons who may recover and how proceeds are allocated among distributees. See EPTL § 5-4.1 for distribution rules: N.Y. EPTL § 5-4.1.

Why you might want the court clerk to hold settlement funds

• To protect funds while intestate or competing beneficiary issues are resolved.
• When recipients include minors or legally incapacitated persons and a court must approve a compromise or appoint a fiduciary to receive the money.
• To guarantee that distributions occur according to a court-approved allocation or the court’s future order.
• When parties cannot agree on distribution timing or whether to accept structured payments.

Typical steps to secure proceeds through the court clerk

1. Negotiate and memorialize the settlement.
   Prepare a written settlement agreement and releases signed by the plaintiff(s) and defendant (or insurer). The agreement should state whether the payment will be made into the court registry or to another approved holder pending further order.
2. File a stipulation or motion in the pending action.
   Ask the court to approve the settlement (if required), and to direct payment to the court clerk, the county clerk’s registry, or another named escrow or fiduciary. If the case is already pending in Supreme Court (where most wrongful death actions are filed), you will submit a proposed order that directs the defendant to remit payment to the clerk of the court under the specific docket number.
3. Provide necessary attachments and affidavits.
   Include the settlement agreement, a stipulation of settlement, counsel’s affidavit about the facts and any need for court approval, and documentation identifying beneficiaries (e.g., birth certificates, marriage certificate) if the court requests proof of distributees.
4. Ask the court to appoint a guardian ad litem (if minors or incapacitated persons are involved).
   The court often requires a guardian ad litem to review and consent to the settlement on behalf of minors or incompetent persons. The court may also order that funds for a minor be deposited with the clerk and/or turned over to a fiduciary or into a blocked account or structured settlement.
5. Obtain the court order directing payment and the clerk’s instructions.
   After the judge signs the order, it will direct how and to whom payment is made. The order typically includes trustee or account details, the docket number, and any conditions for release. The clerk’s office may have a specific process and forms for accepting registry deposits.
6. Defendant or insurer pays into the clerk’s registry or approved account.
   The defendant/insurer complies with the order and deposits funds per clerk instructions. The clerk will hold funds under the court’s control until further order specifying release or distribution.
7. Return to court for distribution or other orders.
   When the parties are ready for final distribution, file a motion or stipulation for distribution (including proposed distribution accounting). The court will issue an order directing the clerk to release funds as authorized.

Situations that commonly require court approval

• Settlements that include minors or legally incapacitated persons.
• When a deceased’s distributees are competing or unclear and the court must determine share allocation under EPTL § 5-4.1.
• When a personal representative or administrator of the decedent’s estate is involved and distribution requires court intervention.

Other ways to protect funds (alternatives to the clerk’s registry)

• Structured settlement (annuity) to provide guaranteed periodic payments and often tax advantages for future family members.
• Escrow with a bank or a neutral escrow agent on terms agreed by the parties and approved by the court.
• Receivership or appointment of a fiduciary (guardian or conservator) by Surrogate’s Court or Supreme Court for long-term management.
• Lawyer’s client trust account (IOLA or attorney escrow) when allowed and with informed consent of all parties — but some defendants or insurers prefer payment into court registry instead of counsel’s trust account.

Practical documents you will need

• Settlement agreement and release signed by all claimant parties.
• Stipulation of discontinuance or stipulation of settlement (if applicable).
• Proposed court order directing payment into the court registry or to a named fiduciary.
• Affidavit of counsel explaining why registry deposit is necessary (e.g., beneficiary issues, minors, competing claims).
• Documentation proving identity and status of beneficiaries (birth certificates, marriage certificates, letters testamentary or letters of administration, when relevant).

Costs, timing, and practical tips

• Clerk registry deposits may incur administrative procedures and fees. Check the local court’s cashier or clerk office rules for exact instructions and fees.
• Getting a signed order from the judge can take days to weeks depending on court schedules. Plan for time-sensitive obligations (medical liens, outstanding bills) when negotiating settlement terms.
• If an insurer insists on quick payment, you can ask for partial payment to cover urgent liens but request the remainder be deposited with the clerk.

What to expect at distribution

Before the clerk will release funds, the court usually requires a written accounting and a final order that approves the specific distribution. The court will verify compliance with EPTL distribution rules and any conditions in its earlier order or settlement agreement.

Key statute to review

Read the wrongful death distribution statute: EPTL § 5-4.1 — Disposition of actions for wrongful death: https://www.nysenate.gov/legislation/laws/EPT/5-4.1.

Bottom line: Securing wrongful death settlement proceeds with the court clerk in New York is usually a matter of getting a court order that directs payment to the registry or appoints a fiduciary to hold funds pending distribution. Whether a court order is required depends on the circumstances—most commonly when minors, incapacitated persons, or competing distributees are involved. Work with counsel to prepare the required stipulations, orders, and supporting materials and to coordinate with the clerk’s office for the deposit and eventual release.

This article explains general New York practice; it is not legal advice. Consult an attorney about your specific case before relying on this information.

Helpful Hints

• Consult an attorney early. Courts often require specific language in proposed orders before they will direct payment to the clerk.
• If minors are beneficiaries, expect the court to appoint a guardian ad litem and require court approval before any settlement is paid out.
• Have identity and relationship documents ready (birth certificates, marriage certificate, letters of administration) to speed up court review and distribution.
• Ask the clerk’s office in advance what paperwork and forms it requires for registry deposits and what account or docket references you must include.
• Consider structured settlements or professional fiduciaries when heirs will receive large amounts or when long-term management is needed.
• Address liens (medical, Medicare, Medicaid, subrogation) in the settlement agreement so the court can account for them at distribution time.
• Keep precise accounting records and get the court’s signed order that authorizes distribution before releasing funds to beneficiaries.
• Remember that distribution under the EPTL may differ from what family members expect — refer to EPTL § 5-4.1 to understand statutory shares.

Disclaimer: This article provides general information about New York procedure only. It is not legal advice. Consult a licensed New York attorney about your specific facts before taking action.