Why a Judge Must Approve a Minor's Settlement in Colorado

By the FigureMyTax Editorial Team · How we calculate

Colorado Rule of Probate Procedure 16 gives the probate court the job of approving a minor's settlement: it reviews reasonableness, adjudicates liens and attorney fees, and makes protective arrangements for the net money.

The rule

Colorado Rule of Probate Procedure 16 sets the procedure for court approval of a settlement of a claim on behalf of a minor. The court considers the reasonableness of the proposed settlement; makes sure the parent, guardian and other interested people have been advised of and understand its finality; adjudicates the allowance or disallowance of any outstanding liens and claims against the settlement funds, including attorney fees; and makes protective arrangements for the conservation and use of the net funds, taking into account the settlement, the nature of the injury and future medical needs.

The statute behind it

C.R.S. 15-14-412(1)(b) lets the court, without appointing a conservator, authorize, direct or ratify any other transaction relating to the protected person's property and business affairs, including a settlement of, and distribution of settlement of, a claim, upon determining that it is in the best interest of the protected person. The court may appoint a special conservator to help carry it out.

What the petition says

The petition covers the child's name, address and birth date and each legal guardian; the claim, defenses and insurance and policy limits; the injuries, lost time, expenses and who paid them; the child's medical condition and prognosis; every subrogation claim or lien and efforts to negotiate it; the proposed settlement, whether any money goes to a restricted account, and the legal fees and costs requested. Exhibits include a health-care provider's statement, fee agreements and billing records, and the proposed release.

Full age and court protection

C.R.S. 13-22-101 treats a competent person of eighteen as of full age to contract, manage an estate and sue without a guardian ad litem, but not as to property held for a protected person under the Probate Code. A conservatorship created only because the person is a minor ends when the person turns twenty-one, unless the court orders otherwise (C.R.S. 15-14-431).

Deadlines

A limitation period runs against a child who has a legal representative in the same way as against others, and a representative has at least two years after appointment to act (C.R.S. 13-81-103). Ask an attorney how this applies before assuming you have time.

After approval

The court decides how the money is held; see restricted accounts, annuities and trusts and how the attorney fee is reviewed. Run your numbers in the Colorado minor's settlement calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Colorado's rules apply to your specific case with a licensed Colorado attorney.