Why a Court Must Approve a Minor's Settlement in Michigan

By the FigureMyTax Editorial Team · How we calculate

In a Michigan action brought for a child by a next friend, guardian or conservator, a proposed settlement must be brought before the judge, who passes on its fairness. If the child is to receive more than $5,000 at once or in any single year, the probate court must appoint a conservator first.

Court approval

Michigan Court Rule 2.420, summarized in the Michigan Judicial Institute's civil benchbook, requires a proposed consent judgment, settlement or dismissal in such an action to be brought before the assigned judge, who passes on its fairness. The injured person must appear unless excused for good cause, and the judge may require medical testimony. The court states that approval is required for minors' settlements.

A guardian ad litem

If the next friend, guardian or conservator has made a claim in the same action and will share in the child's settlement, the judge must appoint a guardian ad litem for the child to approve it.

The $5,000 line

If the settlement requires payment of more than $5,000 to the minor immediately, or in installments exceeding $5,000 in any single year during minority, a conservator must be appointed by the probate court before the judgment or dismissal, payment must be made to the conservator, and the court must receive written verification that the probate court has passed on the bond. If it does not require more than $5,000 in any year, the money may be paid as MCL 700.5102 allows.

Before suit

If no action has been filed, the benchbook and practice sources say the probate court handles the claim under the probate code and holds a hearing to approve the settlement, distribution and fees. We did not read the probate procedure in full.

Who is a minor

A person who is at least 18 is an adult of legal age for all purposes (MCL 722.52).

Deadlines

A person under 18 when the claim accrues has 1 year after turning 18 to bring the action even though the usual 3-year period has run (MCL 600.5851 and 600.5805). Ask an attorney before assuming you have time. See how the money is held and run your numbers in the Michigan minor's settlement calculator.

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