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

By the FigureMyTax Editorial Team · How we calculate

No one may rely on a guardian's authority to settle a minor's tort claim without prior court approval, and the Superior Court or Court of Common Pleas can approve the settlement of a minor's single-transaction tort claim.

The statute

12 Del. C. 3926 says that no person dealing with the receiver of a minor or with a guardian of a person with a disability may rely on the authority of that receiver or guardian to release claims, settle tort claims or convey title to real property without prior court approval of that act.

Who approves it

Section 3901(k) gives the Superior Court or Court of Common Pleas the power to appoint a guardian for the property and approve settlement in connection with a single-transaction matter arising out of a tort claim of a person with a disability, a term that includes anyone under 18 who is legally unable to manage their own property. The monetary thresholds referenced in the section are set by court rule.

The court rule

Superior Court Civil Rule 133 sets the procedure and the dollar threshold. We could read the amending order only in a search excerpt, and the court's PDF link is no longer live, so confirm the current rule text. As the Court of Chancery applies the thresholds, a minor receiving $25,000 or less may have funds placed in a UTMA account or annuity without a guardian, and above that up to $25,000 may go into a UTMA account with the rest in an annuity or structured instrument, under a Court of Chancery order citing Rule 180.

Who is a minor

The guardianship statute defines a person with a disability to include a person who, by reason of being under 18, is legally unable to manage their own property or decide about their own care (3901(a)(1)).

Deadlines

A personal injury action must be brought within 2 years from the date of injury (10 Del. C. 8119). A savings provision for infants, section 8116, applies to actions within sections 8101 to 8115, a range that does not include 8119, so do not assume extra time without asking an attorney.

After approval

The court decides how the money is held; see UTMA accounts versus annuities and what we found about attorney fees. Run your numbers in the Delaware minor's settlement calculator.

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