Applications will be accepted Friday to consider a payout of $1.5 million to avoid what could be protracted litigation for families that lost a loved one in Maui’s Aug. 8 wildfires, which killed at least 101 people.

Victims who suffered serious injuries would be paid less, to be determined by retired Judge Ronald Ibarra of Hawaii island’s 3rd Circuit Court. Ibara will administer payments to both patients and families who lost loved ones.

Both Ibarra and Gov. Josh Green said Tuesday that the One Ohana Fund is designed to help survivors avoid what could be years of litigation and out-of-pocket costs. Green and Ibarra emphasized repeatedly that participation is voluntary and that people could decide instead to proceed with litigation.

Money from the One Ohana Fund, patterned after the aftermath of similar funds following the 9/11 attack and Boston Marathon bombing, would be dispersed no later than the third quarter of this year, Green said.

Ibarra plans to meet with survivors Friday and Saturday on Maui to explain the pros and cons. Maui attorneys have offered to provide legal guidance to potential litigants pro bono, Ibarra said.

The state would contribute $65 million of the $175 mil­-lion fund, even though the Legislature has yet to approve the funding request.

Green said he briefed legislative leaders Tuesday and believes they will see the state’s “moral obligation to help people heal. … This is the right thing to do.”

He was joined by Maui attorney Richard Sakoda, who represents some potential plaintiffs — many of whom, Sakoda said, “are seeking closure.”

One woman told Sakoda on Monday that “she would gladly sign on,” he said.