What Is a Minor Settlement?
If your child has been injured in an accident, you’re likely overwhelmed with questions about how to ensure their best interests are protected. Many parents wonder whether navigating a minor settlement process is worthwhile.
The answer is yes, especially considering the risks children face on the roads. In South Carolina, the child motor vehicle accident death rate is 5.5 per 100,000 children, which is notably higher than the national rate of 3.3 per 100,000. This concerning statistic emphasizes the importance of securing the right legal protections for injured children.
A minor settlement is a legal process designed to do just that. It is a court-approved agreement that finalizes a claim for a minor involved in a personal injury or wrongful death case. Because minors can’t make legally binding decisions, the court ensures that any settlement is fair and responsibly managed.
This guide will explain what a minor settlement is, outline the steps involved and demonstrate how legal support can ensure the best outcome for your child.
Understanding Minor Settlements
What Exactly Is a Minor Settlement?
A minor settlement resolves claims involving children under 18 who’ve been injured or affected by a wrongful death case. It ensures their compensation is used for their benefit, whether to cover medical expenses, future needs or other essential costs. This compensation must often account for the child’s long-term needs, especially when injuries have lifelong consequences.
Why Are Structured Settlements Beneficial?
Structured settlements enhance this protection by distributing payments over time, ensuring funds are preserved and available when needed. For instance, these payments can be allocated to cover important milestones such as educational or medical expenses.
This approach prevents misuse and helps parents and guardians focus on securing their child’s future without immediate financial strain. It also offers long-term security to support the minor’s well-being into adulthood.
What Is a Civil Dispute Minor Settlement 730?
Civil dispute minor settlements further strengthen these safeguards by ensuring fairness and transparency, particularly in jurisdictions with specific regulations like Rule 730. These regulations require court approval to safeguard the minor’s rights, creating a legal framework that upholds accountability and prioritizes the child’s best interests.
Filing a Minor Settlement in South Carolina
Filing a minor settlement in South Carolina is a multi-step process focused on protecting the child’s interests and ensuring the settlement is fair. The following steps outline how this is achieved:
Initiating the Claim: A parent or legal guardian, often with the assistance of an attorney, files a lawsuit or claim on behalf of the minor. This includes preparing and submitting a complaint detailing the injury’s circumstances and the compensation sought.
Negotiating the Settlement: The attorney negotiates with the opposing party or insurance company to reach a settlement agreement that adequately compensates the minor for their injuries and related expenses.
Court Approval: South Carolina law requires court approval for settlements involving minors to ensure they serve the child’s best interests. The specific procedures depend on the net amount the minor will receive after deductions such as attorney fees and medical expenses:
Settlements of $2,500 or Less: Court approval is not required. The parent or guardian can receive the settlement funds directly and execute a release on behalf of the minor.
Settlements Between $2,501 and $15,000: Court approval is necessary, and a guardian may need to be appointed. However, appointing a conservator is typically not required.
Settlements Over $15,000: Court approval is mandatory, and the court must appoint a conservator to manage the settlement funds until the minor reaches adulthood.
Appointment of Guardian Ad Litem: In cases requiring court approval, the court may appoint a guardian ad litem — an independent party tasked with representing the minor’s best interests during the settlement process. This individual reviews the settlement terms and provides recommendations to the court.
Minor Settlement Hearing: A hearing is held where the judge reviews the proposed settlement, inquiring about the minor's injuries, future needs and fund allocation to ensure fairness and the child's best interests.
Management of Settlement Funds: Depending on the settlement amount and court directives, the funds may be managed in one of the following ways:
Conservatorship: A conservator, appointed by the probate court, manages the settlement funds for the minor until they reach the age of majority, ensuring prudent financial management and providing regular accountings to the court.
Structured Settlement: The settlement funds are placed into an annuity that disburses payments to the minor at predetermined intervals, often starting when the minor reaches adulthood, providing financial stability over time.
Restricted Account: In certain situations, the court may allow the settlement funds to be deposited into a restricted bank account, which is inaccessible until the minor turns 18.
Common Questions About Minor Settlements
You likely have questions about how minor settlements work and what to expect. Below are answers to common FAQs to provide clarity and help you move forward with confidence.
What Is the Average Settlement for a Minor Car Accident?
Settlement amounts for minor car accidents can vary greatly depending on your case’s details, including the injury’s severity, medical costs and the long-term impact on your child’s life. For example, minor injuries often result in settlements averaging around $8,872. On the other hand, severe injuries that require long-term care can lead to settlements averaging $718,630.
Why Is Court Approval Required?
Court approval protects the minor from unfair settlements and ensures the compensation is used responsibly. Without this safeguard, there is a risk of mismanagement or insufficient funds to cover the child’s needs.
Can I Disagree With the Guardian Ad Litem’s Recommendations?
If you disagree with the guardian ad litem’s suggestions, you can request modifications or raise your concerns with the court. While judges generally trust the guardian ad litem’s expertise, your attorney can help advocate for what you believe is best for your child.
Consult an Experienced Minor Settlement Attorney
Navigating a minor settlement can be overwhelming, but you don't have to do it alone. At Littlejohn Law, we understand the emotional and financial challenges families face, and we are here to guide you through every step, from filing the case to securing the settlement your child deserves.
If you have questions about a minor settlement or need assistance with your case, contact Littlejohn Law today.
