How Wrongful Death Settlements Impact Estate Distribution, Attorney Fees, and Probate in North Carolina

Detailed Answer

When someone brings a wrongful death claim in North Carolina, the resulting settlement or jury award becomes part of the decedent’s estate. Under North Carolina law, the personal representative appointed by the clerk of superior court must pursue the claim on behalf of the estate. This process is governed by N.C.G.S. § 28A-18-2 (“Wrongful Death of Decedent”), which explains who may bring the action and how proceeds are handled once a recovery occurs.^{N.C.G.S. § 28A-18-2}

Here is how a wrongful death settlement typically affects distribution, attorney fees, and probate:

1. Settlement Funds Become Estate Assets

Once the wrongful death claim resolves, the settlement check is payable to the estate. The personal representative deposits it into the estate account. This money must first cover funeral expenses, medical bills, administration costs, and any valid creditor claims before beneficiaries receive their share.

2. Attorney Fee Arrangements

Most wrongful death lawyers work on a contingency-fee basis. Under Rule 1.5 of the North Carolina Rules of Professional Conduct, contingency fees must be reasonable and clearly disclosed in a written retainer agreement. When the estate recovers funds, the attorney files a request with the clerk of superior court to approve the fee as an estate expense. The court reviews the reasonableness of the percentage charged and ensures beneficiaries will still receive their lawful shares.

3. Probate or Small Estate Procedures

If the decedent left assets beyond the wrongful death proceeds, the personal representative opens a formal estate administration. Settlement funds pass through probate just like any other asset. The representative submits receipts, pays debts and fees, and requests court approval of the final distribution under the will or, if there is no will, according to intestate succession rules in Chapter 28A, Article 2.^{N.C.G.S. Chapter 28A, Article 2}

For smaller recoveries, beneficiaries may use the Small Estate Affidavit process if the total estate value (including wrongful death proceeds) falls under the statutory limit. Under N.C.G.S. § 28A-19-2, heirs can avoid full probate by presenting an affidavit to the clerk and distributing assets directly.

Key Takeaways

1. Proceeds Are Estate Property: Every dollar from a wrongful death settlement is treated as an asset of the decedent’s estate.
2. Priority of Payments: Funeral costs, medical bills, and estate administration expenses (including attorney fees) get paid before beneficiaries inherit.
3. Attorney Fees: Contingency fees must be reasonable, disclosed in writing, and approved by the clerk of superior court.
4. Formal Probate vs. Small Estate: Large settlements typically require formal probate. Small estates may qualify for a simplified affidavit procedure under N.C.G.S. § 28A-19-2.
5. Distribution Laws: If there’s a valid will, distribution follows its terms. If not, North Carolina intestate succession rules apply.

Next Steps & Contact Information

Handling a wrongful death claim involves legal, financial, and procedural steps that affect every stage of estate administration. Working with experienced probate attorneys ensures you meet deadlines, follow court rules, and protect beneficiary rights under North Carolina law.

If you need guidance on how a wrongful death settlement will impact your loved one’s estate, reach out to Pierce Law Group. Our attorneys have extensive experience guiding families through probate, settlement distribution, and fee approval. Email us at intake@piercelaw.com or call us at (919) 341-7055 to schedule a consultation.