Overview. When a person under 18 (a minor) in South Carolina recovers money from a personal injury claim, a court usually must review and approve the settlement. The court’s role is to protect the child’s legal and financial interests. The approval process ensures the settlement is fair, that attorney fees and liens are handled properly, and that funds are placed in a secure manner for the child’s future use.
Detailed Answer
Which court handles approval?
Most county-level probate courts handle approvals for minor-compromise orders in South Carolina because probate courts oversee matters affecting minors and guardianships. If the injury case is already pending in circuit or federal court, that judge may also be asked to approve the settlement. If you need to find local forms or court contacts, the South Carolina Judicial Branch maintains probate and court resources: South Carolina Judicial Branch — Court Forms. For general state law resources, see the South Carolina Code landing page: South Carolina Code of Laws.
Step-by-step: How approval usually works in South Carolina
- Hire counsel (or confirm counsel will seek approval). An attorney with experience in personal injury and minor-compromise procedures prepares the settlement paperwork and a petition asking the court to approve the settlement on the child’s behalf.
- Confirm the guardian or parent can sign. A parent or lawful guardian typically signs the settlement for the minor. If there is any conflict of interest between the parent and the child (for example, if the parent caused the injury), the court will usually require an independent guardian ad litem (GAL) or counsel appointed to represent the minor’s interests.
- Assemble required documents. Typical materials filed with the probate court include the settlement agreement or release, a petition to approve the compromise, an affidavit or declaration describing the facts and the settlement terms, billing/fee statements from the plaintiff’s attorney, and documentation of medical bills and liens. The filing often asks the court to (a) approve attorney fees, (b) direct payment of liens and costs, and (c) order how the net funds will be held or distributed (for example, into a blocked account or trust).
- Disclose medical liens and creditor claims. The petition must disclose any known medical liens, Medicaid/Medicare claims, hospital or provider bills, or subrogation interests. The court will require that these be resolved or that payment from settlement proceeds be authorized.
- Request protective measures for the funds. Courts often require that settlement proceeds be placed into a protected account (sometimes called a blocked account, guardianship account, or trust) or used to purchase a structured settlement annuity. The court may require a surety bond if the funds are to be paid to a guardian who will manage them.
- Attend a court hearing. The court schedules a hearing. The judge will review the petition, hear statements from counsel (and possibly from a guardian ad litem or the guardian), and ask questions to ensure the settlement is in the child’s best interest. The judge may approve the settlement as filed, approve with modifications, or deny the petition if the arrangement is not protective enough.
- Receive a court order and disburse funds. If the judge approves, the court issues an order that authorizes payment of agreed fees and liens and directs how the remainder must be handled. After the order issues, the defendant (or insurer) pays the funds per the order. The court will typically retain jurisdiction to ensure funds are properly managed until the child reaches majority or until the court orders otherwise.
What the court looks for
- That the settlement amount is reasonable under the facts.
- That attorney fees and costs are reasonable and properly documented.
- That medical bills, liens, and subrogation interests are disclosed and paid or otherwise resolved.
- That a protective plan exists for the funds (blocked account, trust, annuity, or guardianship with bond).
- That any potential conflict between the guardian and the minor has been addressed (e.g., appointment of independent counsel or a GAL).
Common protective options for settlement funds
- Blocked (restricted) bank account: Funds are deposited and the bank requires court permission to withdraw.
- Court-ordered guardianship account: A guardian manages funds under court supervision, often with a bond to secure the money.
- Structured settlement annuity: Part or all of the settlement is used to buy an annuity providing regular payments over time.
- Trust for the minor: A trust with specific terms can be created to manage and protect the child’s funds until a specified age or event.
Timing and costs
The approval process can take a few weeks to several months depending on court schedules, complexity of liens, whether a GAL is needed, and whether the parties agree on protective measures. Attorney fees are usually agreed by contingency but require court approval. The court may reduce fees if it finds them unreasonable, so attorneys typically submit billing details in support of fee requests.
When a guardian ad litem or separate counsel is needed
The court will appoint a guardian ad litem (or sometimes independent counsel for the minor) if there is any question whether the parent’s decision is truly in the child’s best interest. Examples include disputes between parents, alleged parental wrongdoing, or complex long-term care needs for the child.
If the case is in federal court
Federal courts follow Federal Rule of Civil Procedure 17(c) when a minor’s claim requires a guardian or next friend; local rules and the federal judge’s practices govern approval when a settlement requires a court order. See the federal rule for context: FRCP Rule 17(c).
After approval — ongoing court supervision
The court may retain jurisdiction to supervise how the money is used or require periodic accounting by the guardian. The order itself will explain what reporting, accountings, or further approvals are required before the minor receives funds at majority.
Helpful Hints
- Start early: resolving liens and drafting a clear petition can take time.
- Document all medical bills, lien letters, and communications with insurers; courts expect full disclosure.
- Expect the court to question large attorney fees or unusual disbursement plans; provide billing detail to support fees.
- Consider structured settlements or trusts for large recoveries to protect long-term needs such as education or lifetime care.
- If a parent caused the injury, request independent counsel for the minor right away; the court will require it in many cases.
- Ask the attorney to explain how the funds will be protected and who will have access before you sign any release.
- Confirm which court will handle approval (probate, circuit, or federal) so you file documents in the right place and follow the correct local procedures.
- Use official court forms when available and follow local probate court filing rules; see the South Carolina Judicial Branch forms page: https://www.sccourts.org/forms/.
Disclaimer: This article explains general principles under South Carolina practice. It is not legal advice and does not create an attorney-client relationship. For advice about a specific case, contact a licensed South Carolina attorney experienced in minors’ settlements and probate procedures.