Infant settlement for personal injury claims.
Your state may require a hearing for court approval for a minor settlement, sometimes called an infant settlement, in order to recover compensation for injury to a minor. Click here to get in touch with an attorney or keep reading for more information.
Can a minor accept a personal injury settlement?
No, if a minor suffers a personal injury, the minor cannot accept a settlement unless they have been emancipated. This is because until you turn 18, you do not have the legal right to enter into a contract. The minor’s parent or legal guardian must be the person to accept the settlement on behalf of the child.
Can I accept a personal injury settlement on behalf of my child?
In Virginia, you may settle your child’s personal injury case. Any money your child gets is your child’s money until they turn 18 (or older!). A parent is entitled to money as reimbursement for their out-of-pocket expenses in connection with the injury in the past and going forward, but the rest of the money is for the child.
How does my child recover a settlement if they’re injured in a car accident?
The process for getting a settlement offer for a child is the same as for an adult. Once the offer of settlement is made, however, the process changes.
In Virginia, a defendant or insurance company paying the settlement may request for the settlement offer to be approved by a judge before it is paid. This is not mandatory. Most insurance companies will request that the minor settlement be approved by a court for any settlement of $5,000 or more. This is often called an infant settlement even though the child is not an actual infant.
If the insurance company wants the settlement to be approved by a judge, then the insurance company will file a petition with the court which will get served on the child’s parents or their attorney. The court will appoint a guardian ad litem to represent the interests of the child and advocate for the child – not the parents and not the insurance company.
The procedure for an infant settlement in Virginia is laid out in code section 8.01-424.
The guardian ad litem will file a report or recommendation to the judge stating whether the settlement is fair and will make a recommendation about who will hold on to the money until the child turns 18. If you have an attorney, your attorney will also file a response describing why the settlement is fair as well as a proposed payment of the money including attorney’s fees, legal costs, medical bills that are still outstanding, reimbursement of the parents’ out-of-pocket costs, and any health insurance liens.
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Why do infant settlements require court approval?
First, the judge will make sure that the settlement is fair to the child considering the extent of their injuries, total amount of medical bills, any impact the injury has on the child’s future, the amount of insurance coverage, and the defendant’s assets.
Second, the judge will order what happens to the child’s money until they turn 18 which may include
The circuit court holding onto the money in an interest-bearing account until the child turns 18 at which point they can ask for their money
The parents holding onto the money in a low-risk interest-bearing account until the child turns 18 (or older).
An annuity or structured settlement or a trust which is low-risk, and interest-bearing. With this option the child’s money can be given to them at periodic payments beginning at 18.
Third, it protects the defendant and the insurance company from any future claim by the child. When a child turns 18, if they believe that the settlement was unfair, they could bring the claim against the defendant and their insurance company.
Tara L. Tighe, Esq. is a compassionate, hardworking attorney prepared to recover as much as possible in your minor child’s case.
Learn more about the TLT Legal Services approach.
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