Why a Judge Must Approve a Minor's Settlement in Vermont

By the FigureMyTax Editorial Team · How we calculate

In Vermont, a Superior Court judge must approve and consent to a release a parent signs for a child's claim of $10,000 or less, and the release then binds the child and both parents. A claim settled for more than $10,000 requires the approval of a court-appointed guardian.

The statute

14 V.S.A. 2643(a) says the Superior judge of the county where the minor resides must approve of and consent to a release to be executed by a parent in settlement of any claim that does not exceed $10,000. A release so furnished is binding on the minor and both parents and their heirs and assigns.

Over $10,000

Subsection (b) says any claim settled for more than $10,000 requires the approval of a court-appointed guardian. A Vermont court petition form says such a settlement is not appropriate for review under section 2643(a) and should be filed as a probate case for a minor financial guardianship, while a settlement of $10,000 or less is reviewed by a civil division judge before it is signed.

Measuring the line

The statute speaks of the claim and the sum for which it is settled, so we measured the $10,000 line against the settlement amount, not the net after fees. Ask the court how it counts if your amount is near the line.

Deadlines

A person who is a minor when the claim accrues may sue within the usual period after the disability is removed (12 V.S.A. 551), and injury actions have three years (512), so about age 21. Ask an attorney before assuming you have time. See how the money is managed and run your numbers in the Vermont minor's settlement calculator.

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