Why and When a Court Approves a Minor's Settlement in Georgia

By the FigureMyTax Editorial Team · How we calculate

If the proposed gross settlement is $25,000 or less, the natural guardian may settle without court approval. Above that, the probate court or the court where the suit is pending must approve it, and a conservator is required when the net is also over $25,000.

The three tiers

O.C.G.A. 29-3-3(c) sets them. (1) Gross settlement of $25,000 or less: the natural guardian, without becoming conservator and without court approval, may compromise the claim or receive payment and hold it for the child. (2) Gross over $25,000 but net $25,000 or less: the settlement must be approved, no conservator is required. (3) Gross over $25,000 and net over $25,000: a conservator is required to compromise and receive the claim, and submits it for approval.

Which court

The settlement goes to the probate court if no legal action has been initiated, or to the court where the action is pending, which has exclusive jurisdiction to approve it. If an action was filed but is no longer pending and the trial court did not retain jurisdiction, the settlement goes to the probate court (29-3-3(c) and (g)).

Gross and net

Gross is the present value of all amounts paid in settlement, including attorney fees, litigation expenses and structured amounts. Net is the gross minus attorney fees, expenses and enforceable liens paid from the proceeds, minus the present value of amounts the child receives after majority, and minus the present value of amounts placed in a court-approved trust (29-3-3(a)). See how fees count in the tests.

Who is a minor

O.C.G.A. 39-1-1 sets the age of legal majority at 18; until then all persons are minors.

Deadlines

Actions for injuries to the person must be brought within 2 years (9-3-33), and a person under 18 when the cause of action accrues has the same time after turning 18, except as provided in a section we did not read (9-3-90(b)). Ask an attorney before assuming you have time.

After approval

An approved settlement is final and binding on all parties, including the minor (29-3-3(e)). Read how the money can be held and run your numbers in the Georgia minor's settlement calculator.

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