How to Handle and Injury Case for Your Child

Settling a Child’s Case in Georgia: What You Need to Know

In Georgia, settling claims on behalf of minors (under 18) is governed tightly by statute and case law. The rules are designed to protect children from unfair deals, misuse of funds, or guardians acting without proper oversight. Basically, the Court wants to protect kids from irresponsible parents.

The key statute is O.C.G.A. § 29-3-3, as amended by House Bill 620 (effective May 2, 2022).

Here’s a breakdown of the thresholds, who must act, what court approval is required, and what happens when parents disagree.

Key Definitions: Gross Settlement & Net Settlement

To understand the rules, you first need to know two critical terms:

• Gross Settlement means the present value of all amounts paid or to be paid in settlement of a minor’s claim. That includes cash, attorney’s fees, litigation expenses, medical expenses, and amounts going into structured settlements or similar financial arrangements.

• Net Settlement means the gross settlement after deducting:

  1. Attorney’s fees, litigation expenses, and legally enforceable liens on the settlement proceeds;

  2. The present value of amounts the minor will receive after turning 18 (or majority), such as payments deferred until adulthood;

  3. The present value of any funds put into a trust for the minor’s benefit (if approved or created by the probate court or by the court in which the action is pending).

These two figures interact to determine whether court approval or a conservator is required

When Court Approval & Conservator Are Required (Thresholds)

Under O.C.G.A. § 29-3-3, after the 2022 amendment (HB 620), the rules are:

• If Gross ≤ $25,000: The “natural guardian” (usually a parent) or “next friend” may compromise/settle the claim without court approval and without needing to become conservator.

• If Gross > $25,000 but Net ≤ $25,000: Court approval required, but no conservator needed. The natural guardian or next friend may receive payment (assuming no conservator is in place), but must use it for the minor’s benefit and be accountable.

• If Gross > $25,000 and Net > $25,000: Conservator required; settlement must be approved by the appropriate court; the conservator must receive the settlement and hold/use it for the minor under court oversight.

These changes increased the threshold from $15,000 to $25,000 in 2022.

What Courts Handle Approval & When

Which court must approve depends on whether a lawsuit (“legal action”) has been filed or not:

• If no lawsuit has been filed (pre-litigation), then the petition to compromise the claim is filed in probate court of the county where the minor lives. Now, understand that some of these Probate Courts: a) move at a glacial pace, b) like to play at being a Federal Judge and can schedule unnecessary hearing and c) can be pickier than sitting trial judges.

• If a legal action has already been filed (litigation in superior, state, or other court), then the settlement must be submitted to the court in which the action is pending.

• If you don’t want the risks in probate court that we identified above, you can ask the defense if they will allow a friendly lawsuit and acknowledge service, thereby giving jurisdiction to a trial court that may be much more efficient.

The court will evaluate whether the proposed settlement is in the best interest of the minor. The court may require a hearing, but doesn’t always — if the record clearly shows all requirements are met, the court can approve without a hearing.

Who Can Compromise & Who Can Accept the Settlement

• Natural guardians or next friends: Typically, a parent or a legally recognized guardian (if the parents are not available or not natural guardians) acts in this role. If the gross settlement is ≤ $25,000, they can settle without court approval or conservatorship.

• Conservators: If required (gross & net both > $25,000), only a conservator can compromise (settle) the minor’s claim. If a conservator already exists, that person must do it.

Also important: even if court approval is not required, if there is a conservator in place, that person must act, not a parent or nextfriend.

Conservator: Responsibilities & Process

If a conservator must be appointed, here’s what’s involved (in general terms):

1. Petition in probate court to be appointed conservator of the minor’s estate.

2. Possibly a hearing on that petition.

3. Requirements like posting a bond (to guarantee performance) may be required.

4. Once appointed, the conservator must receive the settlement funds, manage them for the minor’s benefit, possibly investing them, or placing them in trusts etc.

5. The conservator is accountable via court oversight: periodic accounting, inventory of property, returns to the court, etc. The courts monitor spending and whether the minor’s interests are being protected.

What Happens If Parents Disagree

Parental disagreement can complicate matters. A few scenarios and legal points to watch:

• If both parents have joint legal custody, both are “natural guardians” and usually both must agree (or at least not object) to settlement and/or who signs the documents. If one parent tries to settle without the other’s involvement, the other parent could later claim the settlement was invalid.

• If parents are divorced, or one has sole legal custody, then the custodial parent generally has decision-making authority. You’ll want to check orders of legal custody.

• If a parent has not been “legitimated” (in cases of unmarried parents), then the law may treat parental power differently. Find out whether the father (if applicable) has done legitimation. If there is a conservator already appointed, that person has statutory authority, and parental rights get subsumed (for settlement & property matters) to that conservator, subject to court oversight.

In contested parental disputes, courts may also appoint a guardian ad litem for the minor or otherwise weigh in on what is in the minor’s best interest before approving a settlement.

Practical Tips / Strategy

• Early discovery: Find out early whether there is a conservator, custody orders, legitimation, divorces. Make sure to get all documents so you know who is natural guardian, who can act.

• Structure deal proposals keeping thresholds in mind: Sometimes structuring part of the settlement to defer payments until after majority, or placing funds in trust/structured settlement, can reduce the net amount to avoid needing conservatorship. But must ensure it is legally permissible and approved by court.

• Prepare required petitions: If court approval is needed, file the petition in the right court (probate if pre-litigation; or where case is pending). If conservator is required, combine or coordinate that petition with the settlement petition.

• Accounting and bonds: Conservators should be ready with inventories, plans, possibly bond postings, trust documents, annual reports, etc.

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Recent Changes & Why They Matter

• Before 2022, the threshold was $15,000 for requiring court approval and conservatorship in many cases. HB 620 raised that to $25,000.

• HB 620 also clarified net vs. gross settlement and what deductions count. This helps avoid ambiguity over whether a settlement needs court approval or a conservator.

Case Law & Appellate Trends

While much of the governing law is statutory, there are some appellate opinions and practice guides that illustrate how Georgia courts interpret these rules. For example:

• The Georgia Courts in a practice guide “Settlement with Minors” (Judge Sapp’s memo) walks through how §29-3-3 interacts with older common law principles about conservators and guardians. georgiacourts.gov

• Attorneys’ commentary in firms like Swift, Currie, etc., has emphasized that courts are looking carefully at whether the deduction items (liens, deferred payments, trusts) are properly valued to calculate net settlement. If those are undervalued (or omitted), the statutory requirement might be triggered unintentionally.

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Summary

• If the total (gross) settlement is $25,000 or less, natural guardian or next friend can settle without court approval or conservator.

• If the gross is over $25,000 but net is $25,000 or less, then court approval is needed but no conservator.

• If both gross and net are over $25,000, then both court approval and a conservator are required.

If parents disagree, that often triggers the need for more formal legal oversight (conservatorship, court hearing, sometimes guardian ad litem).

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For Further Reading

• O.C.G.A. § 29-3-3 (Compromise of claim; settlement) — the main statute. Justia

• Probate court procedural rules in Georgia.

• Judge Sapp’s “Settlement with Minors” memoranda. georgiacourts.gov

• Recent law firm articles on how HB 620 changed the statute (Swift Currie; Thompson Mungo; others).

For further reading feel free to go on our website on child settlements in Georgia.