Short Answer

In North Carolina, the personal representative (PR) must handle and, in many cases, obtain court approval of a wrongful death settlement before distributing any money. Unless every adult beneficiary entitled to damages consents in writing, a judge must approve the settlement terms, fees, and how the money is split. After paying allowed expenses and resolving any liens, the PR distributes the balance under North Carolina’s intestacy rules, not the will, and files a separate accounting with the Clerk of Superior Court.

Understanding the Problem

You want to know how, in North Carolina probate, you can make sure a wrongful death settlement is properly approved and then split as agreed. The decision point is: as the personal representative, can you distribute funds as planned, or do you need a judge to approve the settlement and allocations first? The key roles are the personal representative, the judge (for approval), and the Clerk of Superior Court (for oversight of the separate accounting).

Apply the Law

North Carolina law requires that a wrongful death claim be brought and settled by the personal representative. Unless all adult beneficiaries entitled to recover are competent and sign written consents, a judge must approve any settlement (including attorney fees and the distribution). Wrongful death proceeds are not general estate assets; they are applied first to litigation costs and attorney fees, then to allowed medical and burial expenses, and the remainder passes by intestate succession, not by the will. The Clerk of Superior Court oversees a separate accounting of wrongful death funds, and the PR must keep those proceeds segregated.

Key Requirements

• Proper party: Only the personal representative can settle and present a wrongful death settlement for approval and accounting.
• Court approval or consents: A judge must approve the settlement and apportionment unless every competent adult beneficiary entitled to recover signs a written consent; minors or incompetents always require court approval and protective arrangements for their shares.
• Priority payments and liens: Reimburse case expenses, then attorney fees; pay allowed medical and burial expenses, and resolve Medicare/Medicaid or other statutory liens before any distribution.
• Distribution formula: Distribute the net balance under North Carolina intestacy shares (not under the will), with any survival-claim portion (if applicable) treated as an estate asset.
• Accounting and segregation: Keep wrongful death funds in a separate account, avoid commingling, and file a separate wrongful death accounting with the Clerk of Superior Court; bond may be required or increased before receiving funds.

What the Statutes Say

• N.C. Gen. Stat. § 28A-18-2 (Wrongful death) — PR prosecutes claim; order of payments; distribution by intestacy; medical expense limits.
• N.C. Gen. Stat. § 28A-13-3 (Powers of personal representative) — PR may compromise/settle wrongful death claims; approval mechanics.
• N.C. Gen. Stat. § 108A-57 (Medicaid subrogation) — State lien/subrogation on third-party recoveries, including wrongful death.
• N.C. Gen. Stat. § 29-14 (Intestate share of surviving spouse) — Part of the intestacy framework that governs distribution of net proceeds.

Analysis

Apply the Rule to the Facts: If all beneficiaries are competent adults and each signs a written consent to the settlement and the split, you may proceed without a judge’s approval, but you must still resolve liens, pay allowed expenses in the statutory order, distribute by intestacy shares, and file a separate wrongful death accounting with the Clerk. If one beneficiary is a minor, you need a judge to approve the settlement, fees, and apportionment, and you must arrange a guardianship or restricted account for the minor’s share before distribution.

Process & Timing

1. Who files: Personal representative. Where: If a lawsuit is pending, file a motion/petition in that court; if no lawsuit is filed, submit a verified petition to a North Carolina Superior Court judge (district judge may also approve). What: Petition/motion for approval of wrongful death settlement and apportionment, proposed order, written consents from adult beneficiaries (if any), list of intestate beneficiaries with proposed shares, attorney-fee affidavit, and lien documentation. When: Before any distribution of funds.
2. After entry of the order (or receipt of all adult consents), deposit funds into a segregated wrongful death account; reimburse case expenses, pay approved attorney fees, resolve and pay allowable medical/burial expenses and any Medicare/Medicaid or other statutory liens; obtain receipts and releases.
3. File a separate wrongful death accounting with the Clerk of Superior Court, showing allowed expenses, liens paid, and distributions by intestacy. Complete the estate’s regular accounting, then request approval and discharge when the Clerk’s review is complete.

Exceptions & Pitfalls

• Any minor or incompetent beneficiary requires court approval and a guardianship or restricted account arrangement for their share.
• Do not commingle wrongful death funds with estate assets; keep a separate account and separate accounting.
• Medicare must be reimbursed in full from applicable proceeds; Medicaid and certain health plan liens may apply—resolve these before distribution.
• If there is also a survival claim, allocate between wrongful death (non-estate asset) and survival (estate asset) in the court order; the survival portion is subject to creditors.
• The Clerk may require bond (or a bond increase) before the PR receives settlement funds and may review medical/hospital claims paid from the proceeds.
• Wrongful death proceeds are distributed by intestacy, not by the will; plan apportionment accordingly and obtain written consents from competent adult beneficiaries.

Conclusion

To ensure a wrongful death settlement is filed and split correctly in North Carolina, the personal representative must obtain either unanimous written consents from all competent adult beneficiaries or a judge’s approval of the settlement, fees, and apportionment. Keep funds separate, resolve liens, pay allowed medical and burial expenses, and distribute the balance under intestacy. Next step: have the PR file a verified petition for approval (or collect all consents) and then file a separate wrongful death accounting with the Clerk before any distribution.

Talk to a Probate Attorney

If you’re handling a wrongful death settlement and need court approval, lien resolution, and proper distribution, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney–client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.