Detailed answer

This explains how Michigan handles settlements for claims on behalf of minors (people under 18). It describes when court approval is required, who usually must appear, what judges typically review, and practical steps to prepare. This is educational information only and not legal advice.

When does a minor settlement require court approval in Michigan?

In Michigan, settlements that release a minor’s legal claims commonly require court approval so a judge can confirm the deal is fair and in the minor’s best interest. Courts supervise these agreements because minors cannot legally make binding decisions about their claims in the same way adults can. For statutory authority and general rules governing compromise of claims and actions involving persons under disability, see Michigan statutes and court resources (for example: the Michigan Legislature and Michigan Courts sites).

For a direct statute reference, see the Michigan Compiled Laws at the Legislature website: MCL 600.1483 (and related provisions) and consult local court rules or the probate/circuit court where the petition will be filed.

Who usually must attend the hearing?

• Parent(s) or legal guardian who signed the settlement documents (or the petitioner seeking approval).
• The minor’s attorney and the defendant’s/insurance company’s attorney, if represented.
• The minor in some circumstances — often only if the judge requests it. Judges sometimes want to ask a minor a few simple, age-appropriate questions to confirm the minor understands what is happening, but many hearings proceed without the minor’s physical presence.
• A guardian ad litem (GAL) or other court-appointed representative if the court has appointed one; their report is often critical to approval.

What happens at the hearing?

Typical courtroom review includes:

• Verification of jurisdiction and that the minor is properly represented or represented by a guardian/parent.
• Review of the settlement agreement and the proposed distribution of funds (gross settlement, attorney fees, costs, liens, and net to the minor).
• Evaluation of attorney fees — the judge will determine whether fees are reasonable under the circumstances.
• Consideration of any outstanding liens (medical, Medicaid/Medicare, health insurers) and whether they are being properly handled.
• Review of recommendations from a guardian ad litem or from counsel for the minor. Courts often rely on a GAL report that explains why the settlement is in the child’s best interest.
• Decision on how proceeds will be paid or protected — options include: the court ordering the funds held in a blocked account, creating a trust, directing payment to a custodian under the Uniform Transfers to Minors Act (UTMA), purchasing an annuity/structured settlement, or requiring a probate/conservatorship arrangement where appropriate.

How long does the hearing last and what will the judge ask?

Most minor settlement hearings are short — often 10–30 minutes — unless issues arise. Judges commonly ask the petitioner or attorneys to summarize the case and the settlement, confirm the minor’s identity and relationship to the petitioner, and explain the proposed allocation of funds. If a minor appears, questions are simple (e.g., do you understand you will receive money, is anyone forcing you?).

Possible outcomes the court can order

• Full approval of the settlement and an order directing payment as proposed.
• Approval with modifications — for example, reducing attorney fees or directing more funds to a protected account.
• Conditional approval requiring additional documentation (e.g., lien resolution, proof of annuity purchase, or trust documents) before funds are disbursed.
• Denial — the court may refuse to approve the settlement if it believes the agreement is unfair or does not protect the minor’s interests.

Typical documents the court will want to see

• Petition for approval of compromise or similar pleading filed in the appropriate court (often the circuit or probate court depending on local practice).
• The settlement agreement and release signed by the parties.
• An itemized statement showing gross recovery, attorney fees and costs, liens, and proposed net distribution to the minor.
• Proof of the minor’s identity (birth certificate) and proof of guardianship or parental status if applicable.
• Guardian ad litem report if one was appointed.
• Proposed order that specifies how the court wants funds handled (blocked account, trust, annuity, etc.).

Who pays for the hearing and related steps?

Court filing fees and some probate or circuit court costs may apply. Attorney fees are typically paid out of the settlement proceeds and must be approved by the court as reasonable. If a guardian ad litem is appointed, that person’s fee may be charged to the settlement as well, subject to court approval.

Practical tips about attendance and preparation

1. Ask the attorney handling the case whether your physical attendance is required. Many courts allow the guardian or attorney to appear for the minor without the child present, but practices vary by county and judge.
2. Bring identification, the settlement paperwork, and any court notices. If the minor will appear, bring their birth certificate or school ID.
3. Get clear, written instructions about how the funds will be handled after approval (blocked account, trust terms, annuity information, who will be the custodian, etc.).
4. Be prepared to explain any liens and steps taken to resolve them. Courts often want to see that medical liens or insurer subrogation claims are addressed.
5. If you disagree with the proposed distribution, raise that before the hearing so your objections can be heard by the court.

Alternatives to an in-person hearing

Some courts handle routine approval hearings on the papers or via a short, scheduled virtual hearing. Local court rules and the judge’s preferences determine whether in-person attendance is necessary. Ask your attorney or the court clerk about remote appearance options.

Where to get accurate, local information

Local practice varies by county, so contact the clerk of the probate or circuit court where the petition will be filed to learn specific procedures and filing requirements. General Michigan court resources: Michigan Courts. For statutory authority, see the Michigan Legislature: Michigan Legislature (search for provisions related to compromise of claims and minors).

Helpful hints

• Confirm in writing whether the minor needs to be present — different judges have different practices.
• Obtain a detailed settlement breakdown early (gross recovery, attorney fees, costs, lien amounts, net to minor).
• Ask the attorney to prepare a proposed order that protects the minor’s funds — blocked account, trust language, or annuity details are helpful to have before the hearing.
• Check for outstanding medical or government liens (Medicaid) and get written agreements or reductions when possible to show the court.
• Request an estimate of expected timeline from petition filing to final disbursement so you can plan for the minor’s needs.
• If unfamiliar with structured settlements or trusts, request written explanations and examples from your attorney so the judge sees the protections proposed for the minor’s long-term interest.
• Bring copies of every document to the hearing and dress simply — hearings are usually short and informal, but preparation matters.

Disclaimer: This article explains general Michigan legal procedures to help you understand the process. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Michigan attorney familiar with minor settlements and local court practice.