Short Answer

Yes. In North Carolina, reasonable funeral and burial expenses can be paid from the wrongful death recovery before the remainder is distributed to beneficiaries. A judge must approve the settlement and distribution when minors are involved, and the personal representative should present the funeral bill and proof of payment so the court can authorize reimbursement.

Understanding the Problem

In North Carolina, can the personal representative use the wrongful death settlement to reimburse the funeral bill? Here, minor children are beneficiaries, and a guardian ad litem has already been appointed. The case is served and awaiting a response, and court approval of any settlement and distribution will be required. This is the single decision point the court will address when approving the settlement.

Apply the Law

North Carolina law allows a wrongful death recovery to pay reasonable funeral and burial expenses before distributing the balance to beneficiaries. The personal representative (executor or administrator) is the only party who may prosecute and settle a wrongful death claim, and a judge must approve any settlement when beneficiaries include minors. The Superior Court judge typically reviews itemized funeral charges and proof of payment to authorize reimbursement. Proceeds are not general estate assets and are generally protected from ordinary creditors; however, funeral and certain medical bills tied to the fatal injury are payable from the recovery in a specified order. A two-year deadline from the date of death applies to filing wrongful death actions.

Key Requirements

• Proper party: The personal representative brings and settles the wrongful death claim.
• Judicial approval (minors): A judge must approve the settlement and distribution when beneficiaries are minors, with a guardian ad litem safeguarding their interests.
• Reasonable, related expenses: Only reasonable funeral and burial costs connected to the decedent’s death are payable from the recovery.
• Order of payment: Litigation expenses and attorney’s fees are paid first; funeral expenses and qualifying medical bills follow; the remainder is distributed to beneficiaries.
• Claims review: Medical/hospital claims incident to the injury are limited by statute and must be approved; funeral expenses are not subject to the same dollar cap.
• Not estate assets: Wrongful death proceeds are not part of the probate estate and are distributed by intestacy rules, not by the will.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-18-2 (Wrongful death damages) – Identifies recoverable damages, including funeral expenses, and the order of payment.
• North Carolina Gen. Stat. § 28A-13-3(a)(23) (Personal representative’s authority) – Authorizes settlement of wrongful death claims and requires judicial approval when beneficiaries are not all competent adults.
• North Carolina Gen. Stat. § 1A-1, Rule 17 (Guardians ad litem) – Provides for appointment of a guardian ad litem to protect minors’ interests in the action.

Analysis

Apply the Rule to the Facts: Because minor children are beneficiaries and a guardian ad litem has been appointed, a judge must approve any settlement and distribution. The personal representative can ask the court to approve reimbursement of reasonable funeral expenses from the settlement by submitting the funeral invoice and proof of payment. After the court approves payment of litigation costs and attorney’s fees, the judge can authorize paying the funeral bill from the recovery before distributing the balance to the children.

Process & Timing

1. Who files: Personal representative. Where: Superior Court in North Carolina where the wrongful death action is pending. What: Motion/Petition for Approval of Wrongful Death Settlement and Distribution, including itemized funeral bill and proof of payment; confirmation of the guardian ad litem’s appointment. When: Before any disbursement of funds and after negotiations or as part of final settlement submission.
2. The judge reviews the settlement, payment order (costs/fees, then funeral, then qualifying medical), and proposed distribution to beneficiaries. Timeframes vary by county and docket; expect the court to require clear documentation for the funeral amount.
3. After approval, the personal representative pays the authorized funeral expenses, addresses any approved medical claims, and then distributes the net to beneficiaries as ordered. For minors, the court may require structured payment, restricted accounts, a trust, or deposit with the Clerk.

Exceptions & Pitfalls

• Funeral amounts must be reasonable; provide the contract, invoice, and proof of who paid to support reimbursement.
• Certain medical liens (for example, Medicare or the State Health Plan) may have priority rules separate from general statutory caps; verify and resolve them before distribution.
• Do not commingle wrongful death proceeds with estate assets; keep a separate accounting and follow the statutory order of payment.
• Because minors are beneficiaries, obtain judicial approval; do not disburse funds based on informal agreements alone.

Talk to a Wrongful Death Attorney

If you’re dealing with a wrongful death case and need funeral costs reimbursed from the settlement, 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.