How a Court Approves a Minor’s Personal Injury Settlement in Arizona

Quick answer: In Arizona, a personal injury settlement for a minor generally must be reviewed and approved by a court (usually probate or superior court) to protect the child’s financial interests. The process includes negotiating the settlement, preparing and filing a petition to compromise the minor’s claim, notifying interested parties, a court hearing, and entry of an order that authorizes payment or places funds under court-supervised protection.

Detailed Answer

This section explains the typical steps you will see in Arizona when a minor (a person under 18) receives a personal injury settlement. This overview assumes no unusual family or guardianship conflict. It uses common hypotheticals (for example: a 10-year-old injured in a car crash who has a $50,000 settlement offer) to show how the process works.

1. Negotiate and document the settlement

Parties negotiate and reach a written settlement agreement that sets out the total amount and any proposed distribution. Make sure the settlement itemizes amounts intended to cover medical bills, future care, damages for pain and suffering, and attorney fees. In Arizona, you should also identify potential lienholders (medical providers, health insurers, AHCCCS/Medicaid, or other subrogation claimants).

2. Determine which court will approve the compromise

Many Arizona counties require probate court approval of a minor’s settlement by filing a petition to “compromise” a minor’s claim. Sometimes a superior court civil division approves it, but approval often occurs in probate because the probate court oversees minors’ estates and guardianships. Arizona’s probate statutes and local court rules govern the exact filing requirements; see Arizona Revised Statutes, Title 14 (Probate Code) for probate jurisdiction and procedures: https://www.azleg.gov/arsDetail/?title=14. For general court procedures, see Title 12 (Courts and Civil Procedure): https://www.azleg.gov/arsDetail/?title=12.

3. Prepare and file a Petition to Approve/Compromise the Minor’s Claim

Typical petition contents:

The parties and the minor’s identifying information (age, guardian/parent names).
The circumstances of the injury and a summary of liability and damages.
The exact settlement amount and proposed allocation (medical bills, liens, attorney fees, net to minor).
Copies of the settlement agreement and coverage of any liens or subrogation claims (medical provider invoices, insurer subrogation demands, AHCCCS/Medicaid notices).
A request for a court order approving the compromise and authorizing disbursement or ordering funds to be placed in a protected account or guardianship estate.

Court forms and local filing requirements vary by county. Check the Arizona Judicial Branch self-help pages or your county superior court’s probate/forms pages for required local documents: https://www.azcourts.gov/selfhelp.

4. Appointment of a guardian ad litem or counsel for the minor (if needed)

If the minor does not have a guardian of the estate, or if the court thinks the minor needs independent representation (for example, a conflict of interest between parent and child), the court may appoint a guardian ad litem or independent attorney to represent the child’s best interests at the hearing.

5. Notice to interested parties

The court will require notice to the minor (where age-appropriate), to parents or guardians, and to any known lienholders or claimants (health insurers, AHCCCS, providers). The court wants to ensure all parties who might claim an interest in the settlement have the opportunity to object.

6. Court review and hearing

At the hearing the judge will:

Confirm the settlement amount is fair and reasonable relative to the child’s damages and future needs.
Verify that attorney fees are reasonable and properly documented; fees are subject to court scrutiny.
Resolve disputes about liens, medical bills, or who may be the child’s legal representative.
Decide whether funds should be paid directly to the guardian, placed in a blocked account, structured settlement, or deposited as a guardianship estate under court supervision.

7. Court order and disbursement

After approval, the court issues an order that may:

Approve the settlement terms.
Approve and limit attorney fees and costs.
Require payment of liens or direct that liens be resolved from settlement proceeds.
Direct how the net funds should be held—for example, a blocked bank account requiring court approval for withdrawals, a structured settlement annuity, or deposit into a guardianship estate.

Only after the court signs the order will the defendant/insurer or escrow agent release funds consistent with the court’s directions.

8. Post-approval duties and long-term arrangements

Depending on the court’s order, you may need to:

Open a court-approved blocked account and provide bank documentation to the court.
File receipts or accounting reports with the court (especially if funds are managed in a guardianship estate).
Seek subsequent court approval for withdrawals that exceed routine allowances or for major expenditures for the minor’s benefit.

Practical example (hypothetical)

Facts: A 10-year-old injured in a car crash. Settled for $50,000. Medical bills total $12,000. Attorney fees agreed at 33% ($16,500) plus costs. Insurance subrogation claim of $5,000.

Process: Lawyer prepares a petition to compromise under the county probate court rules, lists the settlement breakdown, attaches medical records and bills, lists the subrogation claimant, and requests the court appoint a guardian ad litem if required. The court schedules a hearing; the judge reviews the settlement, reduces or confirms attorney fees if necessary, directs payment of liens, and orders the remaining net ($50,000 – $12,000 – $5,000 – $16,500 = $16,500) deposited in a blocked account for the child’s benefit with limited withdrawal procedures.

Key Arizona Law Resources

Arizona Revised Statutes, Title 14 (Probate Code): https://www.azleg.gov/arsDetail/?title=14
Arizona Revised Statutes, Title 12 (Courts and Civil Procedure): https://www.azleg.gov/arsDetail/?title=12
Arizona Judicial Branch — Self-Help and forms (probate & guardianship pages may include local petition forms): https://www.azcourts.gov/selfhelp

Helpful Hints

Start early: resolving liens and preparing the petition can take weeks.
Identify all possible claimants (health providers, insurers, AHCCCS) and disclose them to the court to avoid later disputes.
Expect the court to carefully review attorney fees. Provide detailed fee agreements and billing records.
Be prepared to explain future care needs and how the proposed distribution meets those needs (future medical costs, education, special needs).
Consider structured settlements or blocked accounts to protect large sums for long-term needs.
Local rules vary by county—contact the probate clerk in your county superior court or check local court forms before filing.
If the minor or family receives public benefits (AHCCCS/Medicaid), seek advice about preserving benefit eligibility and resolving Medicaid liens.
If there’s a dispute between parents or other potential guardians, expect the court to require independent representation for the child (guardian ad litem).

When to Talk to an Attorney

Consider hiring an attorney who handles minors’ compromises when you face:

Large settlements or complex future care needs.
Competing lien claims or public-benefit recovery (AHCCCS).
Disagreements among parents, guardians, or insurers.
The need for a structured settlement or guardianship of the estate.

Disclaimer: This article is educational only and does not constitute legal advice. It does not create an attorney-client relationship. For advice specific to your case, consult a licensed Arizona attorney experienced with minors’ compromises and probate procedures.