Disclaimer

This is educational information only and is not legal advice. Laws change and every case is different. Consult a licensed Alabama attorney for advice specific to your situation.

Detailed Answer — How the Alabama process generally works

When a minor (someone under 19 in Alabama for many legal purposes, though age definitions can vary by context) has a personal injury claim, many settlements require court review and approval before the minor can receive or control the money. The court’s job is to protect the minor’s interests and confirm that the settlement is fair and in the child’s best interests.

Below are the typical steps you can expect in Alabama. Local practice or the judge may vary, so use this as a general roadmap.

1. Hire an attorney experienced with minor settlements.

   An attorney familiar with Alabama practice will evaluate the claim, estimate damages (medical bills, pain and suffering, future care), handle negotiations, and prepare the required court paperwork. If you cannot afford a lawyer, some firms advance costs or handle personal injury cases on contingency.

2. Decide the type of approval your case needs.

   If the injury case is litigated in civil court, the settling parties typically file a motion or petition in that case asking the court to approve the compromise for the minor. In other cases, especially when a claim is resolved before suit, you may petition the probate or juvenile court (or the civil court in the county where the minor lives) to approve the settlement. Your attorney will select the proper court and filing method.

3. Prepare and file a petition for approval (a “minor’s compromise” petition).

   The petition normally includes: the minor’s name and age, names of parents or guardians, a summary of the accident and injuries, the settlement terms, how the settlement was reached, an itemized list of liens and expenses (medical providers, Medicare/Medicaid, health insurers, attorney fees), and proposed handling of the settlement proceeds (blocked account, structured settlement, guardianship fund, etc.).

4. Provide supporting documentation to the court.

   Common exhibits include the proposed settlement agreement and releases, medical records or summaries, bills and lien amounts, a proposed order approving the settlement, and any fee agreement with the attorney. Courts want enough documentation to determine the settlement is fair and that all necessary parties and liens are accounted for.

5. Appointment of a guardian ad litem (if required).

   Some judges appoint a guardian ad litem (GAL) or require a court-appointed attorney to represent only the minor’s interests. The GAL investigates the facts and then reports to the court whether the settlement is in the minor’s best interest. Many jurisdictions require a GAL for contested or complicated settlements.

6. Notice to interested parties.

   The court may require written notice to parents, guardians, medical lienholders, and other interested parties. That gives them a chance to object if something is missing—such as unpaid medical bills or other claims against the settlement.

7. Hearing before the judge.

   In many cases the court schedules a hearing. At the hearing, the judge will confirm the facts, hear any objections, evaluate the reasonableness of attorney fees, and decide how the settlement funds should be held or distributed. The minor generally does not need to testify in person unless the judge requests it or there is a dispute.

8. How the court orders funds to be handled.

   Common outcomes include:

   • Approval of a particular distribution (paying medical bills, liens, attorney fees, and giving the remainder to the minor’s custodian).
   • Placing funds in a court-supervised (blocked) bank account that the minor cannot access until reaching majority or until further court order.
   • Approving a structured settlement (periodic payments) with a qualified annuity carrier—often used to provide ongoing income and tax advantages.
   • Placing funds under a guardianship or conservatorship if the minor needs long-term management.
9. Address liens, subrogation, and government benefits.

   Medicare, Medicaid, private health insurers, and medical providers may have claims for reimbursement. The court will want to know the status of these liens and ensure they are properly resolved. Also consider whether the settlement will affect public benefits (like Medicaid) and whether set-asides or special needs trusts are necessary. Resolving liens before final approval simplifies the process and avoids disputes later.

10. Entry of a final court order approving the compromise.

    If the judge approves, they will sign an order that formally approves the settlement terms and directs how funds will be paid and held. Only after the order is entered and any required trusts or accounts are set up will funds be released according to the order.

11. Distribution and follow-up.

    Once the court’s order is implemented, medical liens and fees are paid, and the remaining funds are deposited into the approved vehicle (blocked account, trust, structured settlement). Keep records and follow any reporting or accounting requirements the court imposes. If circumstances change, you may return to court for further orders.

Procedural rules in Alabama civil courts mirror many of the Federal and state rules for protecting minors. For procedural guidance, see the Alabama Rules of Civil Procedure (for example, check provisions on representation and parties) at https://www.alacourt.gov/rules. For general statutory resources, consult the Code of Alabama through the Legislature’s website at https://alisondb.legislature.state.al.us/.

Because courts closely protect minors, attempting to accept or disburse settlement funds without court approval can create legal problems and may leave you personally liable. Always get an approved court order first.

Helpful Hints

• Start early: resolving liens (medical, insurance, Medicare/Medicaid) can take time—begin the process well before any hearing.
• Get detailed documentation: medical records, bills, and a clear settlement breakdown reduce court questions and speed approval.
• Consider a structured settlement when long-term needs or future medical costs exist—judges often view structured settlements favorably.
• Expect detailed accounting: judges commonly require a proposed order showing exactly who gets paid and how the remainder will be secured.
• Ask your attorney about guardian ad litem requirements—some counties require one for nearly every minor settlement.
• Keep copies of all court orders and bank documents. If money is placed in a blocked account or trust, know who can access funds and under what conditions.
• Discuss how the settlement will affect public benefits. If the minor receives Medicaid, speak with a lawyer about protections (Medicaid liens, special needs trusts).
• If the settlement is complicated or the minor has special needs, expect more scrutiny and possibly a longer court process.
• If someone objects to the settlement, the judge will resolve objections at the hearing; be prepared with evidence showing the settlement is fair.
• When in doubt, ask the judge’s clerk or your attorney which local forms and notices the court requires—local practice varies by county.