Detailed answer: step-by-step — what typically happens in Pennsylvania

When an insurance company issues a settlement check, the path from that check to your pocket depends on who the check is written to, whether an attorney handled your claim, and whether there are liens, subrogation claims, or special circumstances (for example, a minor or incapacitated claimant). Below are the common situations and what to expect in each.

1) Who is the check payable to?

– Payable to you alone: If the insurer made the check payable only to you, you can endorse and deposit it yourself. However, if you signed a contingency-fee agreement with an attorney, the insurer often makes the check payable to both you and your attorney to ensure legal fees and costs are handled properly.

– Payable to you and your attorney (or your attorney trust account): This is the most common outcome when an attorney represented you. The attorney must deposit settlement funds into a client trust account, handle legal fees and costs, resolve outstanding liens, and then send you the net proceeds with an accounting.

2) If an attorney represented you — common lawyer trust-account rules

Pennsylvania attorneys must follow the Rules of Professional Conduct on safekeeping client property (including settlement funds). That means:

• The attorney normally deposits the check into a client trust (escrow/IOLTA) account.
• The attorney may pay liens, medical bills, subrogation claims, and approved costs out of that account.
• The attorney must provide you an itemized accounting showing fees (per your fee agreement), costs, and any payments made to third parties before sending you the remainder.

For general information on Pennsylvania’s attorney conduct rules, see the Pennsylvania Rules of Professional Conduct: https://www.pacourts.us/rules-of-court/pennsylvania-rules-of-professional-conduct.

3) Lien, medical bills, and subrogation — who gets paid first?

Several parties may assert a right to some or all of your settlement proceeds. Typical claims include medical providers, health insurers (including Medicare/Medicaid), workers’ compensation carriers, and government agencies for unpaid benefits. An attorney will usually attempt to negotiate or resolve those liens before distributing funds to you.

If you had medical treatment paid by Medicare or Medicaid, federal rules may require repayment (a Medicare conditional payment recovery) and you could receive a demand from the Centers for Medicare & Medicaid Services (CMS). For Medicare-related information see https://www.cms.gov.

4) Special situations

– Minor claimants: Settlements for minors often require court approval or creation of a protected (blocked) account in many cases. Pennsylvania courts and county juvenile/guardian schedules may require court review to protect a minor’s funds.

– Incapacitated or protected persons: If a guardian or conservator handles the claim, court authorization may be necessary before funds are disbursed. Guardians must follow court orders and accounting rules.

5) Timing — how long before you receive your net proceeds?

Timing varies. If there are no liens and the check is payable only to you, you could receive money in days. If an attorney is involved, expect at least a few weeks: the attorney must clear the check, negotiate liens, pay bills, and provide an accounting. If court approval is needed (minor or incapacitated person), the process can take longer — often months depending on court schedules and the complexity of resolving claims against the settlement.

6) How will you receive the money?

• Paper check from your attorney showing the net amount after fees and costs.
• Wire transfer or direct deposit from the attorney’s firm (confirm routing details directly with the firm).
• In limited cases, a check mailed directly to you from the insurance company (rare when an attorney is on record).

7) What information and documents should you expect?

• An itemized settlement statement showing gross recovery, attorney fees (per your agreement), costs, lien payments, and net proceeds.
• If funds go to a trust or blocked account (minor/incapacity), court orders and account statements.
• Any releases you signed that describe who is released and whether payments to others were required.

8) Tax considerations

How your settlement is taxed depends on the type of damages recovered (e.g., personal physical injury recovery is often non‑taxable for federal income tax purposes, while punitive damages or lost wages are generally taxable). Consult a tax professional for tax advice on your settlement. For federal guidance, see IRS publications; for state-specific tax questions, consult the Pennsylvania Department of Revenue: https://www.revenue.pa.gov.

9) What to do if you don’t get the money you expect

– Ask for a written accounting from your attorney showing how funds were handled.
– If an insurer paid money directly to you but you believe someone else has a legal claim on those funds (for example, a provider or Medicare), consult your attorney immediately.
– If you think your attorney is mishandling funds, you may contact the Disciplinary Board of the Supreme Court of Pennsylvania or your county bar association for guidance. Pennsylvania Courts resource: https://www.pacourts.us.

Helpful Hints

• Before you sign a settlement, ask who the check will be payable to and how funds will be distributed.
• Request a written settlement breakdown or closing statement showing the gross settlement, fees, costs, and any lien payments.
• If you were represented, expect the check to be sent to your attorney’s trust account. Verify the attorney’s trust account procedures and timeline up front.
• Keep copies of all releases and settlement documents — you may need them if a third party later pursues repayment.
• If you are a minor or the claimant is incapacitated, ask whether court approval is required and what form of protected account will be used.
• If Medicare or Medicaid provided care related to your claim, discuss potential repayment obligations early — unresolved federal claims can delay your payment.
• If you have tax questions about a settlement, get early advice from a tax professional to avoid surprises at filing time.
• If anything seems off (no accounting, unexplained deductions, or delays), ask questions in writing and keep records of communications.