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

By the FigureMyTax Editorial Team · How we calculate

A parent or guardian may settle a child's Oklahoma injury claim without court approval if no guardian ad litem, guardian or conservator has been appointed and the net after medical expenses, liens, fees and costs is more than $1,500 and not more than $25,000. Larger recoveries, and any case with a guardian ad litem, go through a court proceeding.

The out-of-court route

12 O.S. 83(B) lets a parent or guardian settle outside a court proceeding when no guardian ad litem, guardian or conservator has been appointed and the total settlement, after subtracting all medical expenses, medical liens, all other liens and reasonable attorney fees and costs, is more than $1,500 and not more than $25,000. The parent completes an affidavit, and the money is deposited in an interest-bearing savings account, a trust or a structured settlement. Under subsection F, the signature binds the minor without court approval or review.

The court route

Money recovered in a court proceeding by a next friend or guardian ad litem that exceeds $25,000 over sums sufficient for costs, medical bills and attorney fees must be deposited by court order in an insured institution, a court-approved trust or bank with trust powers, or a court-approved structured settlement (subsection A).

Withdrawals

Until the child turns 18, withdrawals are made only by court order, or on the child's death (subsection C). The affidavit must be kept for the child until majority.

What we did not find

The out-of-court procedure covers settlements of more than $1,500; we found no rule for smaller ones. Medical malpractice claims for minors have special deadlines we did not research. Ask the court or a lawyer before you sign a release.

Who is a minor, and deadlines

The statute covers a person under 18. A person under a legal disability has one year after it is removed to bring the action (12 O.S. 96), and injury actions generally have 2 years (12 O.S. 95), so plan on the later of the two. See how the money must be held and run your numbers in the Oklahoma minor's settlement calculator.

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