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Detailed Answer

Short overview: In Wisconsin, wrongful-death claims are brought under Wis. Stat. § 895.04. The person who can compromise or receive settlement proceeds is generally the personal representative of the decedent’s estate or the parties who have settlement authority by written agreement. If you need the court or the court clerk to hold or supervise settlement money while remaining issues get resolved (for example, approval by the court, payment of liens, or appointment of a guardian for a minor), you can ask the parties to place the money in a neutral escrow account or ask the court to accept the funds into its registry or issue an order directing where the funds should be deposited.

Legal basis: Wisconsin’s wrongful-death statute is at Wis. Stat. § 895.04, which explains who may sue and how recovery is distributed. That statute is the starting point for who may settle and who must receive proceeds. Other court procedures and local rules govern how the clerk or court will hold funds.

Common reasons to secure proceeds with the court or neutral third party

• One or more heirs, claimants, or interested parties dispute distribution or allocation of the settlement.
• A claimant is a minor or an incapacitated person and the court must approve a compromise.
• There are outstanding liens (medical providers, insurers, Medicare/Medicaid subrogation) that must be resolved before distribution.
• The parties want a neutral place to hold money while a final order, judgment, or dismissal is entered.

Practical steps to secure settlement proceeds through the court clerk or neutral escrow

1. Identify the proper claimant or representative. Under Wis. Stat. § 895.04 the action and recovery are typically handled by the personal representative of the decedent’s estate. Make sure the person signing settlement documents actually has authority to do so (personal representative, guardian, conservator, etc.).
2. Request an escrow or trustee arrangement in writing. The easiest and fastest method is often to have the payer (insurer or defendant) deposit settlement funds into an agreed escrow account (an attorney trust account or neutral escrow agent) while outstanding matters are resolved. That avoids the formalities of court registry procedures and usually allows professional escrow handling and accounting.
3. If you want the court to hold the funds, prepare a stipulation and proposed order. Many Wisconsin county courts will accept funds into the court registry only after a written stipulation or an order. Typical documents include a joint stipulation signed by the parties and a proposed order directing the clerk to accept the funds and specifying conditions for disbursement (who may withdraw, when, any required releases, bond requirements, or notice to interested parties).
4. File any required motions for approval of compromise for protected persons. If a claimant is a minor or legally incapacitated, the court may require a formal petition and hearing to approve the compromise or settlement before funds can be disbursed. Check with the local county court clerk or a local attorney for the specific court practice; you may need to appoint a guardian ad litem or seek court approval before the clerk will release funds.
5. Notify and resolve liens and subrogation claims. Before releasing funds, parties commonly identify medical liens, private-insurer subrogation claims, and potential Medicare/Medicaid claims. Failing to address governmental health care liens (and possible repayment obligations) can create liability later. You should gather payor information and, if necessary, request that the payer withhold amounts or place funds in escrow until liens are resolved.
6. Present the funds and required paperwork to the clerk. The clerk’s office typically requires: (a) the stipulation or signed court order directing deposit; (b) copies of the settlement agreement and releases; (c) identification of the party authorized to withdraw the funds; and (d) contact information for all interested parties. Different counties have different procedures, so contact the clerk’s office in the county where the case sits before attempting a registry deposit.
7. Understand fees and bond requirements. Some clerks charge a registry fee or may require a bond or other security before accepting funds. Also expect administrative processing time—plan for days to weeks, depending on the court and whether a hearing is required.
8. Obtain a court order to disburse funds when ready. To withdraw funds from the court registry, you typically will file a motion or submit a stipulated order that the judge signs. The order should specify payees, amounts, and retainers for any fees or liens. After the signed order is filed, the clerk releases funds per the order.

What the clerk will (and won’t) do

The clerk’s office processes deposits and disbursements as directed by statute or court order and follows local court rules. The clerk does not give legal advice, resolve disputes on the merits, or decide entitlement to settlement proceeds except through court orders. If parties cannot agree, the court may require a hearing to determine proper disposition.

When court approval is likely required

• Minor beneficiaries or claimants under disability.
• Large sums where the court needs to protect creditors or estate beneficiaries.
• Competing claims from multiple beneficiaries or potential creditors.
• When requested by a party or required by local rules.

Key statute: For wrongful-death actions and who may sue or receive the proceeds, see Wis. Stat. § 895.04: https://docs.legis.wisconsin.gov/statutes/statutes/895/04.

Example (hypothetical)

Suppose an insurer offers $200,000 to settle a wrongful-death claim. The decedent’s personal representative and two heirs disagree about allocation. The parties sign a settlement agreement that conditions payment on either (a) the insurer depositing $200,000 in an attorney trust account or (b) the court accepting the funds into its registry under a stipulated order. The insurer deposits the funds into a named escrow account. The parties then resolve liens and obtain a stipulated court order directing disbursement to each heir and to lien holders. The escrow agent or the court clerk releases funds per that order. If one heir objects, the court can hold a hearing before releasing funds.

When to get an attorney

If you face competing claimant disputes, potential government healthcare liens, a protected claimant (minor or incapacitated), or if the opposing side refuses to deposit funds into escrow, consult a Wisconsin attorney experienced with wrongful-death settlements or probate. An attorney can prepare the necessary stipulation, petition for court approval, resolve lien issues, and draft orders to protect your interests.

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, contact a licensed Wisconsin attorney.

Helpful Hints

• Contact the county clerk early. Local registry procedures differ; the clerk can tell you required forms, fees, and whether a hearing is needed.
• Ask the payer to use neutral escrow if possible; it often saves time and avoids additional court steps.
• Collect all lien information (medical providers, insurers, Medicare/Medicaid) before disbursement.
• If a claimant is a minor or incapacitated person, expect the court to require a hearing and formal approval for the settlement.
• Keep written proof of who has authority to settle (letters testamentary, court-appointed personal representative documentation, or power of attorney if applicable).
• Get a written stipulation or court order spelling out disbursement conditions and who may withdraw funds from escrow/registry.
• Keep deadlines in mind: statutes of limitations and local scheduling orders can affect how quickly you must act.
• When in doubt, consult a Wisconsin lawyer—complex lien, probate, or family disputes are common in wrongful-death settlements.