Why and When a Court Approves a Minor's Settlement in South Carolina

By the FigureMyTax Editorial Team · How we calculate

South Carolina measures a child's claim as the net amount accruing to the minor. A parent or guardian may settle a claim of $2,500 or less without court approval, a guardian petitions the circuit or probate court for claims up to $25,000, and a verified petition to the circuit court is required above $25,000.

The $2,500 line

S.C. Code 62-5-433(D) says a settlement that does not exceed $2,500 may be made by the parent or guardian without court approval and without a conservator, and the receipt and release bind the minor. The money must be paid under section 62-5-103.

$2,500 to $25,000

Under subsection C, where there is no conservator, the guardian or guardian ad litem must petition the court, which is the circuit or probate court, for approval without appointing a conservator. If a conservator has been appointed, he may settle without court authorization or petition for approval.

Over $25,000

Under subsection B, the petitioner files a verified petition in the circuit court setting out the facts of the claim, payment, attorney fees and expenses, and why the settlement should be approved, with a statement that it is in the minor's best interests. If the court agrees, its order authorizes the settlement, and payment is made through a conservator or under a probate court protective order.

Net, not gross

The statute defines the claim as the net or actual amount accruing to or paid by the minor as a result of the settlement, so fees and expenses are subtracted. Ask the court how it treats medical bills and liens near a line.

Deadlines

The time of a minor's disability is not part of the limitation period, but the extension cannot run longer than one year after the disability ends (S.C. Code 15-3-40), and injury actions generally have 3 years (15-3-530). Ask an attorney before assuming you have time. See how the money must be held and run your numbers in the South Carolina minor's settlement calculator.

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