Hawaii: Ensuring a Wrongful Death Settlement Is Filed Correctly and Split as Agreed

Detailed answer — steps to ensure correct filing and distribution under Hawaii law

When parties reach a wrongful death settlement in Hawaii, several legal and administrative steps must happen to make the settlement final, enforceable, and distributed exactly as you agreed. The process depends on whether a lawsuit is already pending and whether the settlement affects minors, incapacitated persons, or statutory wrongful-death beneficiaries. The governing statutory framework for actions for death in Hawaii is Chapter 663 of the Hawaii Revised Statutes; see the chapter for the statutory beneficiaries and basic procedures: HRS Chapter 663.

1. Confirm who can settle and who must sign

Hawaii law limits who may bring and settle a wrongful death claim and who must receive the proceeds. Identify the authorized claimant or personal representative (the person who has authority under HRS Chapter 663). If someone other than the personal representative will sign the settlement (for example, a guardian for a minor beneficiary), get written proof of that authority (court appointment, letters of administration, or signed powers).

2. Reduce the deal to a clear written settlement agreement

Make the settlement agreement comprehensive. It should state the gross settlement amount, the exact net distribution to each identified beneficiary, attorney fees and costs, any structured payment terms, who will pay taxes or liens, and the timing of payment. Include mutual releases and express language that the parties intend the agreement to settle the wrongful death claim in full.

3. Address liens, subrogation, and third-party claims before distribution

Before splitting funds, identify and resolve liens and subrogation claims (medical providers, health insurers, Medicare/Medicaid). Record any offsets or negotiated lien reductions in writing. Failing to clear liens can expose beneficiaries to future claims and may require reallocation.

4. If the lawsuit is pending in civil court

– Prepare a proposed stipulation of dismissal or consent judgment that attaches the settlement agreement and a proposed order. The court will generally need to sign a final order or judgment to close the case and permit distribution.
– If distribution among beneficiaries differs from statutory shares, include a sworn statement by the personal representative and signed releases by the beneficiaries acknowledging the agreed split.
– If minors or incapacitated persons are beneficiaries, the court often must approve the settlement or the transfer into a protected account or conservatorship/guardian arrangement before funds are disbursed.

5. If no lawsuit was filed, or for approval of a compromise

You may need to file a petition or request in the appropriate circuit court asking the court to approve the settlement and direct distribution. This is particularly common when minors or disabled beneficiaries are involved or where the statute requires court supervision. Use HRS Chapter 663 as your statutory guide and follow local court rules for petitions and notices: See HRS §663-3 and related sections.

6. Prepare the court submission carefully

When you file with the court, include:

• Settlement agreement and full releases.
• A proposed order or judgment that summarizes the settlement and directs distribution per the agreement.
• An accounting or distribution schedule showing gross recovery, fees, costs, lien payments, and net shares to each beneficiary.
• Proof of authority for the person requesting distribution (letters testamentary/administration, order appointing guardian, or affidavits).
• Consent or waiver documents from beneficiaries when the distribution differs from default statutory shares.

7. Obtain court approval when required and record the order

If the court must approve the settlement (common when minors are involved or where statutes require court oversight), seek entry of the court’s order before releasing funds. After the judge signs the order, file the signed order with the clerk and obtain certified copies if you need to close bank accounts, satisfy lienholders, or provide evidence to third parties.

8. Disburse funds and document every payment

After you have the court order (if required), disburse funds exactly as written in the order/agreement. For each recipient, get a signed receipt and release. Keep a written ledger showing every deduction (attorney fees, costs, taxes, liens) and every payment. File a final accounting with the court if required by local rule or the judge’s order.

9. Preserve records and close the case properly

Keep copies of the settlement agreement, all releases, lien resolutions, the court order, receipts, and the final accounting for several years. If any party later disputes distribution, these documents will be essential.

Common filings and authorities to review

• Hawaii Revised Statutes – Chapter 663 (Actions for death): https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0601-0661/HRS0663/
• Specific statutory sections (example): HRS §663-3 (consult the chapter for related sections on beneficiaries and distribution).
• Hawaii Judiciary — local court rules and filing procedures: https://www.courts.state.hi.us/

Helpful hints — practical checklist to prevent disputes and delays

• Confirm the authorized representative in writing before you sign anything. Ask for court letters if applicable.
• Get the distribution schedule and each beneficiary’s signature on the settlement agreement or on a separate written consent so no one later claims they were excluded.
• Identify and resolve medical, health-plan, Medicare/Medicaid, and other liens before disbursing funds. Obtain written lien releases or lien-payoff statements.
• If minors or incapacitated persons receive money, consider a court-approved trust, blocked account, or other supervised vehicle rather than an immediate cash distribution.
• Use a neutral escrow agent or the settling defendant’s insurer to hold funds until all paperwork and court approvals are complete.
• Include an express indemnity clause in the settlement protecting the payer against future lien claims related to the incident when possible.
• Prepare a clear proposed order for the court that exactly mirrors the settlement and distribution schedule; judges often sign well-drafted orders faster.
• Keep meticulous records: settlement checks, disbursement receipts, released liens, and a final accounting filed with the court if required.
• Ask whether attorney fees and costs require separate court approval in your case; if so, request a hearing and submit a fee affidavit.
• When in doubt, consult a Hawaii attorney experienced in wrongful death and probate procedures before filing or paying out funds.