Short answer

When a minor in Nebraska needs a court-approved settlement (for example, a personal-injury settlement), the court often appoints a guardian ad litem (GAL) to represent the minor’s legal interests. A party files a petition asking the court to approve the compromise; the judge can appoint a GAL, who investigates the case, advises the court whether the settlement is in the minor’s best interest, and may appear at the approval hearing. If the court approves the settlement, it will also decide how settlement funds will be handled for the minor’s benefit.

Detailed answer — step-by-step process under Nebraska practice

1. Who asks the court to approve a minor’s settlement?

Typically, the parent or guardian of the minor (or the plaintiff’s attorney) files a petition or motion with the court asking for approval of the settlement. If the claim is pending in district court, the motion goes there; if the matter is handled in probate or county court, it will go to that court. Nebraska courts require judicial review when a person under 19 is settling a claim to ensure the settlement is fair and protective of the minor’s interests.

2. When will the court appoint a guardian ad litem?

The court may appoint a GAL whenever it believes the minor needs independent legal representation. Common reasons include:

• There is a dispute between the minor’s parent(s) and the proposed settlement terms.
• The parent or guardian has a potential conflict of interest (for example, the defendant is related to the guardian).
• The settlement is large, complex, or involves structured payments or special needs planning.
• The court wants an independent investigation to confirm the settlement is fair and adequate.

3. How is the guardian ad litem chosen?

The judge appoints the GAL. Often the GAL is a licensed attorney experienced with minor settlement approvals or a lawyer on the court’s approved list. The court may appoint a public GAL or a private attorney proposed by a party, subject to court approval. The appointment order will state the GAL’s duties and whether the GAL is to be paid from the settlement proceeds.

4. What does the guardian ad litem do?

The GAL’s role is to protect the minor’s legal interests. Typical duties include:

• Reviewing the settlement documents and underlying facts (medical records, liability evidence).
• Investigating whether the settlement amount and terms are reasonable for the minor’s present and future needs.
• Interviewing the minor (if appropriate), parents, treating providers, and counsel.
• Preparing and filing a written report or recommendation for the court and appearing at the court hearing to present findings.
• Monitoring how settlement funds are handled after approval (e.g., recommending a blocked account, trust, or appointment of a guardian of the estate).

5. What information will the court want before approving the settlement?

Courts commonly require:

• The petition or motion to approve the compromise.
• A copy of the settlement agreement.
• Medical records and bills supporting damages claimed.
• An itemization of attorneys’ fees, costs, and liens (Medicaid, health care provider liens, Medicare conditional payments, or ERISA liens).
• The GAL’s report or recommendation (if a GAL was appointed).
• Proposed orders specifying how the settlement proceeds will be managed (blocked account, annuity, guardianship of the estate, special needs trust if applicable).

6. How does the court decide whether to approve the settlement?

The court evaluates whether the settlement is fair, reasonable, and in the minor’s best interest given the facts. The factors include the strength of the claim, the risk and cost of continued litigation, the minor’s current and future needs, liens and expenses that will reduce proceeds, and the adequacy of proposed protections for the funds. The GAL’s independent recommendation carries weight with the judge.

7. What happens to the money after approval?

The court will specify how to handle the money to protect the minor’s future. Common options are:

• Placement in a blocked (restricted) bank account that requires court permission for withdrawals.
• Purchase of an annuity to provide periodic payments.
• Creation of a trust (including a special needs trust, if the minor is disabled).
• Appointment of a guardian of the estate to manage funds until the minor reaches majority.

8. Who pays the GAL and attorneys’ fees?

Courts commonly authorize payment of reasonable attorneys’ fees and GAL fees from the settlement proceeds. The court reviews fee requests for reasonableness and may reduce them if excessive. If the GAL is appointed by the court, the appointment order usually explains how the GAL will be compensated.

9. Approximate timeline

Timelines vary. A straightforward approval can be completed in a few weeks to a couple of months if parties cooperate and the court schedule is clear. Complex matters or contested guardianship/fees may take longer.

10. Example (hypothetical)

Hypothetical: A 7-year-old child is hurt in a car accident. Parents reach a $150,000 settlement with the insurer. Because the child is a minor, the parents file a petition in the county court asking the judge to approve the compromise. The court appoints an attorney as guardian ad litem to investigate. The GAL reviews medical records, confirms future medical needs, and recommends approval with $20,000 to a blocked account, purchase of an annuity for future payments, and a guardian-of-estate to manage the remainder. The court approves the recommendation, authorizes payment of reasonable attorney and GAL fees from the settlement, and issues an order implementing the financial protections.

If you need to review Nebraska statutes or the court’s probate resources, start here: Nebraska Revised Statutes, Nebraska Legislature (laws and statutes): https://nebraskalegislature.gov/laws/statutes.php. For practical court forms and probate/guardian information, visit the Nebraska Judicial Branch: https://supremecourt.nebraska.gov/.

Helpful hints — preparing for a minor settlement and GAL appointment

• Start early: gather medical records, bills, and lien information before filing the petition for approval.
• Be transparent about liens (Medicaid, ERISA, medical providers) — courts expect full disclosure.
• Discuss possible protections for settlement funds (blocked account, annuity, trust) with counsel before the hearing.
• Expect the court to review attorneys’ fees; prepare a clear fee agreement and timesheets if needed.
• If the minor has disabilities or public benefits, consider a special needs trust — ask counsel about preserving benefits eligibility.
• Bring witnesses or declarations (treating doctors, vocational experts) if the settlement’s adequacy depends on future medical or care needs.
• If you disagree with a proposed appointment or recommendation, raise your objections early and provide alternative proposals to the court.
• Keep communications professional and focus on the minor’s best interests — courts prioritize the child’s needs over adult convenience.