How to File and Split a Wrongful Death Settlement in Arkansas | Arkansas Probate

Detailed Answer — How to make sure a wrongful death settlement is filed and split as agreed under Arkansas law

Short overview: A wrongful death settlement in Arkansas can involve multiple legal pieces: who may bring the claim, whether there is a separate survival action for the decedent’s estate, resolving liens/claims, preparing a written settlement agreement, and obtaining any required court approval and a disbursement order. Follow a clear filing and closing process so the court record matches what you agreed and the money is actually distributed to the people or accounts you intended.

1. Confirm who has authority to settle and receive funds

Arkansas wrongful death claims are governed by the wrongful death statutes in Title 16 of the Arkansas Code (see Title 16, Chapter 62). In practice, settlements are typically handled by the personal representative or executor of the decedent’s estate or by the beneficiaries or next of kin if they are the statutory plaintiffs. Before you finalize a settlement, confirm:

Whether a personal representative (executor) has been appointed by the probate court. If so, that person usually must sign settlement documents on the estate’s behalf.
Who the named plaintiffs are under the wrongful death statute and whether all statutory beneficiaries have been identified.

Link to Arkansas Code Title 16 (wrongful death provisions): https://www.arkleg.state.ar.us/ArkansasCode/Title16.

2. Distinguish survival-action proceeds from wrongful-death proceeds

Many cases include both a survival action (damages the decedent could have claimed before death; those belong to the estate) and a wrongful-death claim (damages for the beneficiaries). Make the allocation explicit in the settlement agreement. Why this matters:

Allocation affects who receives which portion (estate vs. beneficiaries).
Allocation can affect attorney-fee calculations, creditor claims against the estate, and tax or lien issues.

3. Use a written settlement agreement that spells out the split and payment mechanics

A clear, signed settlement agreement is essential. It should include:

Parties and their roles (personal representative, beneficiaries).
Total settlement amount and how much is allocated to the survival action versus wrongful death.
Net distribution schedule (gross amount, attorney fees and costs, liens, taxes, expenses like funeral bills), and the resulting net amounts to each recipient.
How payments will be made (lump sum, structured settlement, or trust account deposit) and timing.
Detailed release language specifying which claims are being released.
Signatures of the authorized persons (personal representative, plaintiffs, next of kin) and notarization if required.

4. Resolve liens, subrogation, and creditor claims before disbursement

Identify and address any health insurance, Medicaid, Medicare, medical provider, or funeral-home liens, plus estate creditor claims. Common steps:

Request written statements of outstanding liens and amounts from medical providers, insurers, and Medicaid/Medicare.
Negotiate and obtain lien releases or written payoff amounts.
If Medicaid or other government benefit liens apply, contact the Arkansas Department of Human Services or the proper agency to determine the required repayment and obtain any necessary instructions: https://humanservices.arkansas.gov/.

5. Prepare and file the proper court documents

Even if the parties agree, you must put the agreement on the court record in many situations. Typical filings include:

A joint motion or stipulation to approve the settlement (if the court’s approval is required or helpful).
A proposed order approving the settlement and directing disbursement of funds.
A proposed judgment or compromise order that states the allocation between survival and wrongful death proceeds and orders how the funds are to be distributed.
If minors or incapacitated beneficiaries are involved, you may need a guardianship, a court hearing, or ordered protections (blocked accounts or structured settlements).

Check local court rules and the Arkansas Rules of Civil Procedure for any required forms or procedures: https://www.arcourts.gov/rules.

6. Seek court approval when required or prudent

Court approval is often required or strongly recommended in these circumstances:

Minor or legally incapacitated beneficiaries will share in the proceeds.
The settlement affects the distribution of estate property or contradicts previously filed probate matters.
Contested distributions or competing claims exist among beneficiaries or creditors.

A court order approving the settlement and directing disbursement gives you a clear, enforceable roadmap for distribution and protects the parties and the settling defendant.

7. Document final disbursements carefully

When funds are released, produce a closing ledger that shows:

Gross settlement amount.
Attorney fees and costs (with the retainer or fee agreement attached).
All lien and creditor payments (with payoffs or releases attached).
Final net amounts to each beneficiary or account.
Proof of payment (cancelled checks, wire confirmations, receipts, or bank statements).

File a copy of the closing ledger with the court, especially if the court approved the settlement or ordered distribution.

8. If a beneficiary disagrees after distribution, use the court order as protection

A court order that explicitly states the agreed split and orders the clerk to disburse funds protects the payor (often the defendant’s insurer) from future claims by recipients who change their minds. If anything unclear remains, go back to the court and seek clarification or modification rather than making unilateral payments.

Practical checklist for closing and filing in Arkansas

Confirm appointment or authority of personal representative or authorized plaintiffs.
Obtain written settlement agreement with explicit allocation and distribution terms.
Identify and secure releases or payoffs for liens (medical, funeral, Medicaid/Medicare).
Prepare a motion/stipulation and proposed order for the filing judge that shows allocation and asks the court to approve or direct disbursement.
Arrange for payment method and escrow or trust account if required (for minors or contested funds).
File the motion/stipulation, proposed order, and closing ledger with the clerk of court.
Disburse funds per the court order and keep receipts; then file proof of disbursement with the court.

Where to look in Arkansas law

For statutory background on wrongful-death actions and who may bring them, consult Arkansas statutes in Title 16 (Chapter 62). The Arkansas Rules of Civil Procedure and local court rules control motions, hearings, and forms. Use the Arkansas General Assembly site for the code and the Arkansas Judiciary site for rules and court forms:

Arkansas Code — Title 16 (wrongful death provisions): https://www.arkleg.state.ar.us/ArkansasCode/Title16
Arkansas Courts — rules and procedures: https://www.arcourts.gov/rules
Arkansas Department of Human Services (Medicaid questions and liens): https://humanservices.arkansas.gov/

Final note: A signed settlement agreement plus a clear court order directing distribution is the strongest protection against later disputes. When in doubt, ask the court to approve or enter an order before checks are cut.

Disclaimer

This article provides general information about Arkansas law and is not legal advice. It does not create an attorney-client relationship. For advice specific to your case, consult a licensed Arkansas attorney who handles wrongful death and probate matters.

Helpful Hints

Get the appointment of the personal representative on file before you sign a full release tied to estate claims.
Put allocation language in the first paragraph of the settlement—don’t leave it to a later clause.
Request written lien statements early; resolving liens late can delay distribution or reduce net recovery unexpectedly.
If minors will receive money, consider a court-approved structured settlement, blocked account, or guardianship arrangement to avoid later challenges.
Keep a clear paper trail: signed settlement, lien releases, proposed order, court approval, disbursement ledger, and receipts.
Consider an escrow agent or court registry deposit when distribution among multiple parties is complex or contested.
Verify the fee agreement with your attorney in writing; include whether fees come from the gross or net settlement and how costs are reimbursed.
If a government benefit recipient is involved, check for potential repayment obligations to Medicaid/Medicare before final disbursement.
When relatives disagree, bring the issue before the probate or civil court instead of making unilateral distributions.