If your child is injured in Georgia and the claim settles, you may need a court’s approval before the settlement is final. Under O.C.G.A. § 29-3-3, court approval is generally required when the gross settlement is more than $25,000. A settlement of $25,000 or less can generally be handled by the parent as natural guardian without court approval, but the money must still be held and used for the child.
The right approval path depends on several facts: the gross settlement, the net amount left for the child, whether a lawsuit has been filed, whether a conservator already exists, and whether some of the money will be deferred or placed into a trust or structured settlement. These issues should be sorted out before the settlement terms are final, not after.
Key Takeaways
- A child’s injury claim belongs to the child, and Georgia law adds safeguards before it can be settled.
- Georgia’s minor settlement statute uses a $25,000 threshold measured by both the gross and the net settlement.
- If no lawsuit has been filed, the probate court generally approves; if a lawsuit is pending, the court handling it generally does.
- Settlement money belongs to the child. A parent or conservator must hold and use it for the child’s benefit.
- Planning the approval route early helps avoid delays after the amount is agreed.
Who Owns a Child’s Injury Claim
When a child is hurt in a car crash, a dog attack, an unsafe property incident, or another event, the injury claim belongs to the child. A parent or natural guardian can act for the child in important ways, but the parent does not have unlimited authority to compromise the claim and use the money.
A parent may also have a separate claim of their own arising from the same incident. The release should make clear whether it resolves only the child’s claim or the parent’s claim too.
Gross Settlement vs. Net Settlement
O.C.G.A. § 29-3-3 uses two different numbers, and both matter.
The gross settlement is the present value of everything paid or to be paid to resolve the child’s claim. It includes cash, litigation expenses, attorney fees, and any amounts used to fund a structured settlement or similar arrangement.
The net settlement starts with the gross amount and subtracts:
- Attorney fees, litigation expenses, and legally enforceable liens paid from the settlement
- The present value of amounts the child will receive after turning 18
- The present value of amounts placed into a trust that the court approves or creates for the child
Because the statute uses both numbers, the headline settlement amount does not answer every approval question.
The $25,000 Thresholds
Here is how the current statute generally sorts settlements:
| Settlement size | What Georgia law generally requires |
|---|---|
| Gross settlement of $25,000 or less | The natural guardian may settle without becoming conservator and without court approval, but must hold the money for the child |
| Gross over $25,000, net of $25,000 or less | Court approval is required; a conservator is not required |
| Net over $25,000 | Court approval and a conservator are generally required |
Subsection (d) of the statute also allows a settlement to be approved using a structured settlement or a trust that the court approves or creates. Because amounts deferred past age 18 or placed into an approved trust reduce the net settlement, the structure you choose can change which rules apply. The correct procedure depends on the case and the proposed arrangement.
Which Court Approves the Settlement
If no lawsuit has been filed, the probate court is generally the court that approves the settlement. If a lawsuit is pending, the court handling that case generally has authority to approve it. If a case has ended without the trial court keeping jurisdiction, the approval route can change.
This is more than a paperwork detail. A settlement can stall when the parties agree on an amount first and only think about jurisdiction, conservatorship, or funding once the release is ready. Planning the approval route early helps your family understand the documents, any hearing, and the timing involved. You can read the full statute on Justia.
Protecting the Money for Your Child
Settlement money received for a child is not the parent’s income. The parent or conservator must hold and use the money for the child’s benefit and may have to account for how it is managed.
Depending on the amount and structure, funds may be placed in a conservatorship account, a structured settlement, a trust, a restricted account, or another court-approved arrangement. A structured settlement can pay money over time or after the child turns 18. A trust can allow a trustee to manage funds under court-approved terms. Each option has trade-offs in control, flexibility, and cost, so it helps to compare them before the court hearing.
Questions to Ask Before You Seek Approval
- What are the gross settlement and the estimated net settlement under the statute?
- Has a lawsuit been filed, and which court has authority to approve the settlement?
- Will a conservator be required, or is another approved structure available?
- When will my child receive the money, and who controls it before then?
- What fees, litigation expenses, medical bills, or legally enforceable liens will be paid from the settlement?
- Does the release resolve only my child’s claim, or does it also resolve my own claim?
Frequently Asked Questions
Can I Settle My Child’s Injury Claim Without Going to Court in Georgia?
Generally, yes, if the gross settlement is $25,000 or less. In that range, a natural guardian may settle without court approval and without becoming a conservator. You must still hold and use the money for your child’s benefit.
Can I Use My Child’s Settlement Money for Family Expenses?
No. The money belongs to the child, and a parent or conservator must use it for the child’s benefit. Depending on the arrangement, a court may supervise how the funds are held and spent. If you are unsure whether a particular expense is allowed, ask before you spend the money.
How Long Does My Child Have to Bring an Injury Claim in Georgia?
For most personal injury claims, Georgia tolls the two-year deadline until the child turns 18 (O.C.G.A. § 9-3-90). Medical malpractice claims and claims against government entities follow different, often shorter rules, and a parent’s own claim may have its own deadline. Our guide to Georgia personal injury deadlines explains more.
Does a Minor’s Settlement Always Require a Hearing?
Not always. The statute gives the approving court discretion over whether a hearing is needed, depending on how clearly the proposed settlement meets the legal requirements. Your lawyer can explain what the court handling your child’s case is likely to need.
If your child was injured in Georgia and you are considering a settlement, The Gunn Law Group offers a free, no-obligation consultation, and there is no attorney fee unless we recover for you. Call 888-BIG-GUNN (888-244-4866). Hablamos español.
