Detailed Answer

This explains the typical court process in Colorado when a person under 18 wants a personal injury claim or settlement resolved and protected by the court. It is written for someone with no legal background. This is general information only and not legal advice.

Overview — why court involvement is often required

Courts protect minors from unfair releases or poor distribution of settlement proceeds. When a minor’s personal injury claim settles, many Colorado judges will require either a court-approved compromise or another approved mechanism (for example, a custodial account under Colorado’s version of the Uniform Transfers to Minors Act) before settlement funds are disbursed. The court’s role is to confirm the settlement is fair, that liens and future needs are addressed, and that funds will be preserved for the minor.

Step-by-step process (typical)

Get initial legal advice. Hire a Colorado attorney experienced in personal injury and minors’ settlements. If you cannot pay a lawyer, the court may appoint a guardian ad litem (GAL) to represent the minor’s interests.
Resolve liens and bills before final approval. Identify outstanding medical liens, Medicaid or CHP+/Medicaid liens, health-insurance subrogation, and any other debt that might claim part of the recovery. The settlement papers should show how these will be handled.
Prepare and file a petition or application for court approval. The attorney (or guardian) files a motion/petition asking the appropriate Colorado court to approve the compromise of the minor’s claim. That filing typically includes the settlement agreement, a statement of the gross recovery, itemized deductions (attorney fees, costs, liens), an explanation of how the net proceeds will be preserved for the minor, and other attachments the judge requires.
Appointment or involvement of a guardian ad litem (if needed). If the court believes the minor needs independent representation, it can appoint a guardian ad litem to evaluate whether the settlement is in the child’s best interest. The GAL may investigate the facts, meet the child (depending on age/maturity), and make a recommendation to the court.
Notice and service. The court will require that interested parties (parents, legal guardians, insurers, lienholders) receive proper notice of the petition and any scheduled hearing so they can object if appropriate.
Court hearing. The judge reviews the paperwork and may hold a hearing. At that hearing the judge can ask questions about the reasons for the settlement, possible future needs, whether the amount is reasonable, and whether liens and fees are appropriate. The judge evaluates whether the settlement is fair and in the minor’s best interest.
Approval order and instructions for funds. If the judge approves the compromise, the court enters an order that describes how the funds must be handled. Possible outcomes include:

ordering funds deposited into a blocked/bank account under court control;
approving a custodial account under Colorado’s Uniform Transfers to Minors Act (UTMA) so a custodian may manage funds until majority;
ordering a structured settlement (annuity) for future payments;
appointing a guardian of the estate if a guardianship is already or will be opened.

Distribution consistent with the order. The settling parties and the insurer follow the court’s order. Attorney fees and approved liens are paid first if the court permits that. The remainder is placed where the court ordered (custodial account, structured settlement, guardianship estate, etc.).
Follow-up and recordkeeping. Maintain court records and any required accountings. If a guardian of an estate is appointed, periodic accountings to the court may be required.

Common specific legal tools used in Colorado

Custodial accounts under Colorado’s UTMA for minors (to hold funds until the minor reaches the age specified by statute or account terms).
Structured settlements (annuity contracts) that pay the minor over time.
Guardianship of the estate where a formal guardianship proceeding is opened and the guardian is authorized to manage the money under court supervision.

To review Colorado statutes and find the exact statutory language for custodial transfers to minors or other relevant laws, see the Colorado Revised Statutes online: https://leg.colorado.gov/colorado-revised-statutes. For practical court forms, guidance, and local rules, see the Colorado Judicial Branch forms page: https://www.courts.state.co.us/Forms/Index.cfm.

Hypothetical example (illustrative)

Suppose a 14-year-old injured in a car crash reaches a $100,000 settlement with the insurer. The parties identify $20,000 in medical liens, and the attorney requests a 33% fee ($33,000). The petition to the court explains: gross settlement $100,000; liens $20,000; attorney fee $33,000 (court will review and approve a reasonable fee); costs $2,000; net remainder $45,000. The court orders that the $45,000 be placed in a custodial UTMA account for the child until age specified by law, approves payment of the agreed and reasonable attorney fee from the settlement, and signs an order requiring the insurer to issue the settlement check to the court or to an escrow designated by the court. Only after the court’s order will funds be released as directed.

How long does the process take?

Timing depends on whether a hearing is required, whether the judge requests more documentation, and court scheduling. Simple approvals can take a few weeks; contested or complex matters (lien dispute, need for guardianship, large structured settlements) can take months.

Where this information comes from and why a local lawyer helps

Local Colorado judges and clerks enforce rules and practices that vary by county and by judge. A Colorado personal injury attorney will prepare required filings, negotiate lien resolution, propose an appropriate method to hold funds (UTMA, structured settlement, guardianship), and present the petition to the court. If the minor has no parent or if there’s a conflict of interest, the court may require different procedures such as appointment of a conservator or GAL.

Important links

Colorado Revised Statutes (searchable): https://leg.colorado.gov/colorado-revised-statutes
Colorado Judicial Branch — forms and self-help: https://www.courts.state.co.us/Forms/Index.cfm

Disclaimer

This information is educational only and not legal advice. Laws and procedures change and every case is different. To protect a minor’s rights and funds, consult a licensed Colorado attorney who can examine the facts and file the necessary papers with the appropriate Colorado court.

Helpful Hints

Do not sign a release or accept distribution for a minor until the court approves the settlement or another lawful mechanism is in place.
Identify Medicare, Medicaid, or private-insurer liens early; these often must be negotiated or satisfied before final distribution.
Consider a structured settlement if the injury creates ongoing medical or care expenses—this preserves funds long-term and can be tax-efficient.
Ask your attorney about using a UTMA custodial account versus a formal guardianship of the estate—each has pros and cons.
Keep detailed records and copies of the court approval order; banks and insurance companies will need the order to release funds.
Verify the judge’s local practices and required forms by contacting the court clerk or checking the court’s website.
Expect the court to scrutinize large attorney-fee requests—be prepared to explain and justify the fee and costs.
If the minor receives public benefits, consult counsel before distribution—certain distributions can affect eligibility.