Aug142025
Probate Q&A Series

How do I secure proceeds from a pending wrongful death settlement through the court clerk? — North Carolina

Short Answer

In North Carolina, the personal representative (executor or administrator) can ask the judge who approves the wrongful death settlement to order the settlement funds be deposited with the Clerk of Superior Court for safekeeping. If a minor is entitled to a portion, the clerk can receive up to $50,000 per source for that minor without a guardianship; larger amounts or contested allocations require a judge’s order. The clerk will invest the funds and release or disburse them only as the law and the court’s order allow.

How North Carolina Law Applies

Only a court‑appointed personal representative may bring and settle a wrongful death claim. A judge must usually approve the settlement unless every person entitled to the proceeds is a competent adult who signs a written consent. As part of that approval, the personal representative can request an order directing that some or all settlement proceeds be paid to the Clerk of Superior Court to hold and invest—this “secures” the money while liens are resolved, allocations are finalized, or until a minor beneficiary turns 18.

Wrongful death proceeds are not probate assets. Except for limited payments (burial and capped last illness bills) and certain statutory liens (for example, Medicare/Medicaid or State Health Plan subrogation), general estate creditors cannot claim this money. After allowable expenses and attorney’s fees, the balance is distributed to the statutory heirs as if the person died without a will.

Key Requirements

  • Standing and authority: A North Carolina personal representative must be appointed to settle the claim. The personal representative may compromise or settle, but court approval is required unless all competent adult beneficiaries consent in writing.

  • Settlement approval path: If a lawsuit is already pending, the judge in that case can approve the settlement. If no case is filed, approval can be sought through a civil action or an uncontested special proceeding for settlement approval.

  • Deposit with the clerk: To secure funds, ask the approving judge to direct that the settlement check be made payable to the Clerk of Superior Court and deposited for the benefit of the statutory beneficiaries. For minors, the clerk may accept up to $50,000 per payor/source under the clerk‑administered funds statute; amounts above that typically require a judge’s order.

  • Disbursement priorities: From wrongful death proceeds, the law allows payment of reasonable burial expenses and limited last illness medical bills, then attorney’s fees/costs, and the net balance to the heirs under intestacy. Certain health‑care liens must be honored.

  • Accounting and segregation: The personal representative must keep wrongful death proceeds separate from probate assets and be prepared to account for how the proceeds were allocated and disbursed.

Process & Timing

  1. Get appointed: Open an estate and obtain Letters from the clerk so the personal representative has authority to act in the wrongful death matter.

  2. Prepare the settlement for approval: Gather settlement terms, proposed allocations (liens, burial, last illness, fees), and beneficiary information. If any beneficiary is a minor or an adult who will not consent, plan to seek judicial approval.

  3. Ask for a deposit order: In the motion/petition for approval, request that the judge order the settlement proceeds (or a specified portion) be deposited with the Clerk of Superior Court. If minors are involved, identify each minor’s share and whether any portion is $50,000 or less per source (which the clerk can hold without a guardianship) or exceeds that amount (which should be covered by the judge’s order).

  4. Provide required payee details: To receive funds, the clerk will require the beneficiary’s full name, last known address, Social Security or taxpayer identification number, and the name/address of the closest relative. Have this ready so the clerk can receipt and invest the funds promptly.

  5. Clerk invests and holds: The clerk deposits and invests funds under the court’s authority. Disbursements follow the approval order and applicable law. Minors’ clerk‑held funds are generally released at age 18 unless the order or a guardianship directs otherwise.

  6. Final allocation and payouts: Pay allowed burial and last illness amounts, satisfy any required health‑care liens, pay fees/costs as approved, then distribute the net to the heirs under the wrongful death statute. If any dispute arises, seek clarification or a supplemental order before the clerk releases funds.

What the Statutes Say

Exceptions & Pitfalls

  • Do not commingle: Wrongful death proceeds must be kept separate from probate assets. The clerk can require a separate accounting and may compel it if needed.

  • Minors’ amounts over $50,000: The clerk’s routine authority to receive minors’ funds without a guardianship caps at $50,000 per source. Larger shares should be covered by a judge’s order, and a guardianship of the estate may be required in some cases.

  • Health‑care liens: Medicare, Medicaid, and the State Health Plan may have rights that affect the net distribution; build lien resolution into the approval order.

  • Approval and consents: If every competent adult beneficiary does not sign a written consent, obtain a court order approving the settlement and allocations. Without proper approval, the clerk may not release funds.

  • Using the wrong statute: The “administration by clerk” procedure for money owed to a decedent (a $5,000 limit) does not apply to wrongful death proceeds; use settlement approval and a deposit order instead.

  • Vague orders: If the approval order does not clearly state who receives what and when, ask the judge for a clarified or supplemental order to guide the clerk’s disbursements.

Helpful Hints

  • When seeking settlement approval, include proposed findings and a draft order that instructs the insurer to issue payment to the Clerk of Superior Court and specifies how the clerk should hold, invest, and disburse funds.
  • Provide the clerk with complete beneficiary information (full legal name, address, SSN/TIN, and nearest relative) to avoid delays in receipting and investing funds.
  • Spell out lien resolution in the order, including exact amounts or a process to finalize them, so the clerk can disburse confidently.
  • If a minor will receive more than $50,000 from any single source, discuss with your attorney whether to request a guardianship of the estate or a tailored court order for the clerk to hold those funds.
  • Ask the court to allow confidentiality of the settlement amount in the estate file when appropriate, while still documenting required payments and receipts.

Talk to a Personal injury Attorney

If you’re working toward a wrongful death settlement and want the court to secure the proceeds through the clerk, 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.