Legal Question in Personal Injury in Kentucky

I certainly hope your stepfather makes a full recovery, and this is all moot.

If an individual dies during the pendency of a lawsuit, the estate is entitled to any damages awarded. How the estate is divided depends on whether there is a will. If your stepfather has a will, then his beneficiaries would inherit that money according to the will, so it depends who he has named as beneficiaries. If your stepfather does not have a will, then he would die intestate and the money is divided according to the laws of intestate inheritance, and your mother would inherit a portion accordingly.

Although your stepsister has power of attorney, your mother could still be appointed Administratrix of the estate in the event there is no will. She would therefore be able to be involved with any pending litigation. She should seek legal counsel to assist her in the probate process, should it become necessary.