Detailed Answer

Short overview: In South Carolina, you can protect a wrongful death settlement and make sure the money is split the way you agreed by using a clear written settlement agreement, involving the court when required, handling liens and subrogation before distribution, and using an escrow or trust account plus a consent order or court-approved distribution. Below are concrete steps you can follow and practical tips for common hurdles.

Who brings the claim and why that matters

Wrongful-death claims in South Carolina arise under state statute. The statutory framework that governs wrongful death actions is found at S.C. Code Ann. Title 15, Chapter 51. The party who files and settles the action (for example, the personal representative of the estate or a designated plaintiff) controls the settlement process. That control affects how the settlement is documented and whether the court needs to approve the distribution.

Step-by-step: how to ensure proper filing and distribution

1. Create a clear written settlement agreement (signed by all parties):
   • Spell out the total amount, net amount after anticipated liens/expenses, and the exact allocation to each beneficiary (dollar amounts or percentage shares).
   • Include who will sign releases, who will receive payments, and the timeline for payment (lump sum or structured payments).
   • State who will pay attorney fees and costs and whether fees will be taken before or after allocation to beneficiaries.
2. Identify beneficiaries and their legal status:
   • Confirm each beneficiary’s identity and legal capacity (adult, minor, incapacitated).
   • If any beneficiary is a minor or incapacitated, expect the court to require appointment of a guardian ad litem or protective order and court approval of the distribution.
3. Address liens, health-care subrogation, and creditors before distribution:
   • Determine outstanding medical provider liens, private-insurer subrogation, Medicare/Medicaid recovery claims, and funeral-expense claims. These claims often must be paid or resolved before beneficiaries receive money.
   • Medicare/Medicaid may assert recovery rights; resolve or reserve funds for those claims before final disbursement.
4. Use an escrow or client trust account for settlement funds:
   • Have the payer (insurance company or defendant) issue payment to the plaintiff’s attorney trust account or a neutral escrow agent until distribution is finalized.
   • Require a written escrow agreement describing disbursement triggers (e.g., court order, signed releases, lien satisfactions).
5. Get the court involved when required or prudent:
   • If the case remains pending in circuit court, file the appropriate written notice, stipulation of dismissal, or motion to approve settlement. When minors or disputes exist, you typically must seek court approval of the settlement or the distribution plan.
   • When a personal representative is handling proceeds through an estate administration, distributions may need to go through probate with court approval to bind creditors and beneficiaries.
   • File a proposed consent order (or a petition for approval) stating how the funds should be split and asking the judge to approve the disbursement. The court’s signed order gives finality and protects you from later challenges.
6. Prepare and file the right documents with the court:
   • Typical submissions: signed settlement agreement, stipulation of dismissal (if the parties agree to dismiss after payment), a motion or petition for approval of compromise/distribution, proposed order, and documentation resolving liens.
   • If a guardian ad litem is involved for a minor or incapacitated person, include the guardian’s reports and recommendations.
7. Use a consent order or court order for distribution:
   • Ask the court to enter an order directing the payer/escrow agent to release funds according to the agreed allocation, after satisfying specified liens and fees.
   • A signed court order prevents later disputes about who should have received what and can extinguish subrogation claims if the order directs payment to lienholders.
8. Document final disbursement carefully:
   • Provide each beneficiary with a written settlement distribution statement showing gross amount, deductions (fees, expenses, liens), and net paid.
   • Retain proof of payments (cancelled checks, wire confirmations) and keep a copy of the signed court order and releases.

When court approval is especially important

Court approval is strongly advisable or required when:

• Any beneficiary is a minor or legally incapacitated.
• There is disagreement among the heirs or claimants about the split or the settlement amount.
• Lienholders (Medicare/Medicaid, health providers, or insurers) may have competing claims.
• Proceeds are administered through an estate or probate process.

Common problems and how to avoid them

• Not resolving liens first: Reserve or pay potential subrogation claims before distributing to beneficiaries.
• Poorly drafted release language: Use precise release wording so the defendant is fully released and beneficiaries are protected.
• Failure to involve the court when necessary: Get approval for minors or contested splits to prevent later challenges.
• Informal verbal agreements: Always put allocation in writing and have all signatories sign the settlement and release documents.

Helpful Hints

• Hire or consult an attorney experienced in South Carolina wrongful-death law to draft the settlement agreement and proposed court order.
• Ask the payer to make the check payable to the attorney’s trust account or an escrow agent, not to a single beneficiary, until all conditions are met.
• Get lienholders to sign written lien satisfactions or obtain clear written offsets before distribution.
• If you plan structured payments, get the payment schedule and default remedies in writing and include them in the court order when possible.
• For minors, consider court-approved trusts or guardianship arrangements so funds are protected and properly managed.
• Keep a full paper and electronic file with the settlement agreement, court orders, releases, lien satisfactions, escrow instructions, and proof of disbursements.

Where to find the law

The statutory law governing wrongful death actions is in South Carolina’s code: S.C. Code Ann. Title 15, Chapter 51. For local filing procedures and court forms, consult the South Carolina Judicial Branch website at https://www.sccourts.org.

Final practical checklist before you sign and accept funds

1. Is the settlement agreement in writing and signed by all required parties?
2. Have you identified all beneficiaries and their legal status?
3. Have you confirmed or resolved lien and subrogation claims?
4. Will funds be held in escrow or a trust account until distribution conditions are met?
5. Has the court approved the settlement or distribution if a minor or disagreement exists?
6. Do you have a court order (or consent order) directing distribution to avoid future disputes?

Disclaimer: This article explains common steps used in South Carolina wrongful-death settlements to help you understand the process. It is educational only and does not constitute legal advice. Laws and court procedures change; consult a licensed South Carolina attorney about your specific situation before relying on this information.