Why and When a Court Approves a Minor's Settlement in New Hampshire

By the FigureMyTax Editorial Team · How we calculate

In New Hampshire, if the net amount to be paid to a child while still a minor is more than $10,000, the superior or district court must approve the settlement, and the court requires proof that the person receiving the money has been appointed guardian of the child's estate.

The statute

RSA 463:19-b says settlements, judgments and decrees in a suit or claim brought for a minor by a parent or next friend must be approved by the superior or district court as follows. If the net amount to be paid to the minor while still a minor exceeds $10,000, court approval, including of structured settlements, is required.

Guardian of the estate

The court must require a certified statement from the probate court that the guardian ad litem, parent, next friend or other person who receives money for the minor has been appointed guardian of the minor's estate and is subject to the duties in RSA 463:19. For a judgment or decree, that proof is required before any payment order.

How the net amount is counted

Section 463:2(VI) defines net amount as the settlement, judgment and related interest and taxable costs, or decree, received after deducting attorney's fees, court costs and other expenses related to the claim. We counted medical bills and liens as expenses related to the claim, so a $60,000 settlement with $20,000 in fees, $2,500 in costs and $8,000 in medical bills has a net of $29,500. Ask an attorney if you are near $10,000.

Smaller amounts and later payments

If the net is $10,000 or less, this statute does not require court approval. For any net amount to be paid after the minor reaches the age of majority, the court may require approval for good cause. The Superior Court's Rule 40 covers the petition and procedure; we could not open it from our environment, so we do not state its details.

Who is a minor, and deadlines

An adult is a person who has reached 18 (RSA 21:44). An infant may bring a personal action within 2 years after the disability is removed (508:8), shorter than the usual 3 years (508:4). Ask an attorney before assuming you have time. See how the child's money is protected and run your numbers in the New Hampshire minor's settlement calculator.

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