When a Child Is Hurt: personal injury minor settlement

When a child is injured because of someone else’s negligence, families quickly discover that the rules for compensation are different—and stricter—than adult claims. One key difference is the minor settlement process. Courts usually must review and approve any settlement for an injured child, and the funds are safeguarded until the child turns 18 (or another court-approved milestone). Below is a practical guide from the Law Offices of Wilkerson, Jones & Wilkerson to help you understand how these cases work, what to expect, and how to protect your child’s future.

Why Settlements for Minors Are Treated Differently

Children cannot legally sign contracts or manage significant sums, so the law steps in to protect their interests. Court oversight aims to ensure:

• The settlement amount is fair for the child’s injuries and future needs.

• Attorney’s fees and case costs are reasonable and transparent.

• Medical liens are addressed properly.

• The money is preserved for the child, not diverted for other uses.

This oversight is not a hurdle—it’s a safety net to make sure your child is treated fairly now and later.

Who Files the Claim and Who Gets Paid?

A parent or legal guardian typically files the claim on the child’s behalf. Any settlement funds belong to the child, not the parent, even if a parent advanced medical costs. After court approval, the money is placed into a court-monitored account, an annuity (structured settlement), or a trust. Parents don’t “receive” the settlement—the child does—though courts may allow reimbursement for verified out-of-pocket medical expenses.

What Damages Can a Child Recover?

Every case is unique, but common categories include:

• Medical expenses (past and future)

• Rehabilitation and therapy (physical, occupational, speech, psychological)

• Assistive devices or home modifications (if injuries cause long-term limitations)

• Pain and suffering and loss of quality of life

• Educational impact (if injuries affect learning)

If a parent lost wages because of caregiving responsibilities, a separate parent claim may be possible. Your attorney will advise whether to include it or keep the focus solely on the child’s claim.

The Court Approval Process, Step by Step

While details vary by jurisdiction, the process generally includes:

1. Reach an agreement in principle. Your attorney negotiates with the insurer/defense.

2. Prepare the petition. This filing explains the facts, injuries, medical treatment, proposed settlement amount, attorney’s fee, expenses, liens, and how funds will be safeguarded.

3. Hearing before a judge. A judge may ask questions about the child’s recovery, prognosis, schooling, or daily life, and will evaluate whether the settlement is in the child’s best interest.

4. Order of approval. The judge issues an order specifying where the money will go (e.g., blocked account, structured settlement, trust) and any follow-up requirements.

5. Funding and compliance. The insurer releases funds; your attorney ensures the deposit or annuity is set up exactly as the court ordered.

For a plain-English overview of why courts get involved, see this short explainer on court approval of settlements for minors.

Lump Sum vs. Structured Settlement vs. Trust

Choosing the right vehicle for the funds is pivotal:

• Blocked/Restricted Account (Lump Sum on 18th Birthday):
  Simple, low-maintenance, but the child may receive a large sum all at once at 18. Good for modest settlements or when immediate liquidity at adulthood is the goal.

• Structured Settlement (Annuity):
  Converts part or all of the settlement into guaranteed payments over time—e.g., starting at 18 with staged increases for college, then a larger tranche at 25. Structures can include medical set-asides for known future care. They’re tax-advantaged in many cases and help prevent rapid spend-down.

• Special Needs Trust (SNT) or Settlement Management Trust:
  If the child may need means-tested benefits (like SSI or Medicaid) or has lasting impairments, a trust can preserve eligibility while funding medical care, therapies, education, and quality-of-life needs. A trustee manages distributions under strict rules.

Often, the best plan blends these tools—for example, a small blocked account for near-term needs at 18 plus a structured settlement for college years and an SNT for long-term care.

Medical Liens and Subrogation: Don’t Overlook Them

Hospitals, health insurers, Medicaid, or ERISA plans may claim reimbursement from the settlement for bills they paid. Mishandling liens can delay or derail court approval. Your attorney will:

• Verify each lien’s validity and amount

• Negotiate reductions where possible

• Document final resolutions for the court

Proper lien resolution increases the child’s net recovery and keeps the settlement compliant.

How Long Does a Minor Settlement Take?

Timelines vary with injury severity, medical recovery, insurer responsiveness, and court calendars. Generally:

• Investigation & treatment: weeks to months

• Negotiation: a few weeks to a few months

• Court approval: typically 30–90 days after paperwork is filed, depending on the court’s schedule

Your attorney should set expectations early and keep you updated at each step.

Common Mistakes to Avoid

• Settling too early. Don’t finalize before understanding the child’s long-term prognosis. You only get one settlement.

• Ignoring future costs. Therapies, tutoring, surgeries, or adaptive equipment can be substantial.

• Overlooking liens. Unresolved liens can consume settlement funds later.

• Choosing the wrong fund vehicle. A simple blocked account may be fine—or it may squander tax advantages and long-term protections.

• DIY paperwork. Courts scrutinize minor settlements. Experienced counsel prevents avoidable delays and denials.

How the Law Offices of Wilkerson, Jones & Wilkerson Helps

Our team manages the entire process—from evidence gathering and valuation to negotiation, lien reductions, and court approval. We collaborate with pediatric specialists, life-care planners, and structured settlement consultants to align the recovery with your child’s real-world needs. Most importantly, we build a funding plan that preserves benefits eligibility where needed, supports education and therapy timelines, and protects the money until your child is ready.

What we do for families:

• Clear, child-focused case valuation

• Strategy on structure vs. trust vs. blocked account

• Lien audits and negotiations

• Complete court-approval filings and hearing representation

• Post-approval compliance and funding verification

FAQs

Will my child have to appear in court?
Sometimes. Many judges like to briefly meet the child, but accommodations can often be made, especially for medical or distance reasons.

Can we use some money now for urgent needs?
Courts may allow limited, well-documented withdrawals (e.g., specialized equipment) if it’s clearly in the child’s best interest. Your attorney will request and justify any early use.

What happens at 18?
Blocked accounts typically release funds to the child at 18. Structured settlements pay as scheduled (some start at 18, others later). Trusts continue under the trustee’s management per the trust terms.

What if my child’s condition changes later?
Most settlements are final. That’s why it’s vital to account for likely future needs—through a structure, trust, or both—before approval.

If your child was hurt and you’re weighing a settlement, the Law Offices of Wilkerson, Jones & Wilkerson can help you make the right long-term decisions. We’ll fight for a fair recovery and set it up the right way—so the money serves your child, not the other way around.

Free case review: Call us or send a message to start a confidential consultation today.