When a child is injured in a crash, dog attack, unsafe property incident, or another event, the claim belongs to the child. A parent or natural guardian can act for the child in important ways, but the parent does not always have unlimited authority to compromise the claim and use the money. Georgia law adds safeguards to protect the settlement.
The approval path depends on several facts: the gross settlement, the net amount remaining 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 an approved arrangement. These issues should be evaluated before the settlement terms are finalized.
Gross Settlement and Net Settlement Are Different
O.C.G.A. § 29-3-3 defines the gross settlement broadly. It includes the present value of amounts paid or to be paid for the child’s claim, including cash, litigation expenses, attorney’s fees, and amounts used for a structured settlement or similar arrangement. It also includes amounts paid on behalf of all settling parties.
The net settlement starts with the gross amount and applies the deductions recognized by the statute. Those may include attorney’s fees, litigation expenses, and legally enforceable liens paid from the proceeds. The calculation can also account for certain approved deferred payments or trust arrangements. Because the law uses both numbers, the headline settlement amount does not answer every approval question.
The Twenty Five Thousand Dollar Threshold
The version of O.C.G.A. § 29-3-3 effective July 1, 2026 uses $25,000 in several key provisions. If the proposed gross settlement is $25,000 or less, the natural guardian may generally compromise the claim and receive the settlement without becoming the conservator and without court approval, while remaining accountable to hold and use the funds for the child’s benefit.
If the gross settlement is more than $25,000 but the net settlement is $25,000 or less, court approval is generally required. The proper court depends on whether a legal action has been filed and remains pending. The statute provides that a conservator is not required in that specific gross-over and net-at-or-below category, subject to the statutory conditions.
When the net settlement exceeds $25,000, additional safeguards may include a conservator or a court-approved structure that defers or protects the child’s receipt. The correct procedure depends on the case and proposed arrangement.
Which Court Reviews the Settlement
If no lawsuit has been filed, the probate court may be the court responsible for approval. If a legal action is pending, the court handling that action may have exclusive jurisdiction to approve the settlement. If an action has ended without the trial court retaining jurisdiction, the approval route can change.
This is more than a filing detail. A settlement can be delayed when the parties negotiate the amount first and consider jurisdiction, conservatorship, or funding only after the release is ready. Planning the approval route early helps the family understand the documents, hearing, and timing that may be required.
The Money Must Be Protected for the Child
A parent receiving settlement proceeds for a child does not receive the money as personal income. The parent or conservator must hold and use the money for the child’s benefit and may be accountable for how it is managed. Depending on the amount and structure, funds may be placed in a conservatorship account, structured settlement, trust, restricted account, or another court-approved arrangement.
Questions Parents Should Ask Before Approval
- What is the gross settlement and the estimated net settlement under the statute?
- Has a lawsuit been filed, and which court has jurisdiction to approve the settlement?
- Will a conservator be required, or is another approved structure available?
- When will the 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 proceeds?
- Does the proposed release resolve only the child’s claim, or does it also address a parent’s separate claim?
Protect the Claim and the Child
A minor’s settlement should resolve the legal claim without creating a new financial problem for the family. The amount, approval procedure, and funding plan should be evaluated together.
If your child was injured in Georgia and you are considering a settlement, call Gunn Law Group at 888-BIG-GUNN for a free case review.
Attorney advertising. This article provides general information and is not legal advice. The law and required procedure can change. Every case is different.
Legal references
O.C.G.A. §§ 29-3-1 and 29-3-3, including the version effective July 1, 2026; Georgia Courts memorandum on settlements with minors.
