What You Need to Know About Court Approval of a Minor’s Personal Injury Settlement in New York

This FAQ-style guide explains, in plain language, the typical steps New York courts follow to review and approve a personal injury settlement for a minor (anyone under 18). The goal is to help you understand the process so you can talk with an attorney and make informed decisions. This is general information only and not legal advice.

Quick answer

When a minor has a personal injury claim in New York, the courts usually must approve any settlement to protect the minor’s interests. The typical steps are: (1) retain a lawyer, (2) collect records and resolve liens, (3) file paperwork and request court approval (often with appointment or involvement of a guardian ad litem), (4) attend a court hearing or submit papers for judicial review, and (5) follow the court’s orders for how the money will be held or distributed (for example, a blocked account, custodial account, or structured settlement).

Why the court must approve a minor’s settlement

The law requires extra protection for minors because they cannot legally give full consent to release claims or manage significant financial awards. Court approval prevents unfair settlements, ensures medical and other liens are handled, and controls how net proceeds are used or conserved for the child’s future.

Step-by-step: How approval typically works in New York

1. Talk with a personal injury attorney experienced with minor claims.

   A lawyer will evaluate the claim, estimate damages, advise on settlement value, and handle required court filings. If you don’t have an attorney, the court may appoint a guardian ad litem to protect the minor’s interests.

2. Gather documents and identify liens.

   The attorney will compile medical records, bills, wage loss documentation (if any), and any evidence of liability. The attorney must also identify outstanding liens or subrogation claims (Medicaid, private insurers, Medicare, health-care providers, or government benefits) because those must usually be resolved before the court will approve a net award.

3. Prepare settlement papers and a petition for court approval.

   The lawyer prepares the settlement agreement and a motion or petition asking the court to approve the settlement. The papers typically include:

   • A copy of the signed settlement agreement or release.
   • A breakdown of gross recovery and proposed deductions (attorney fees, costs, liens, medical bills, expenses).
   • A statement from the guardian (or guardian ad litem) supporting the settlement as fair and in the child’s best interests.
   • Medical records and evidence of injury and treatment.
   • Information about how the funds will be preserved or used (e.g., blocked account, annuity, custodial account).
4. Court filing and possible appointment of a guardian ad litem.

   Where the settlement involves personal injury damages for a minor, the court commonly appoints or expects a guardian ad litem (GAL) to represent the minor’s interests unless a guardian with full authority is already in place and the court is satisfied. The GAL investigates the facts, reviews the settlement, and files a report or affidavit recommending approval or identifying concerns.

5. Judicial review and court hearing (or submission on papers).

   The court will review the submission. In many cases the judge holds a brief hearing. At the hearing, the judge may ask questions of the attorney, the guardian, and sometimes the parents or the minor (depending on age and maturity). The court’s focus is whether the settlement is fair, whether liens and fees are reasonable, and whether the proposed disposition of funds protects the minor’s future needs.

6. Court order: approval and instructions for distributing or protecting funds.

   If the court approves the settlement, it issues an order that often does several things at once: approves attorney fees and costs, approves the release, directs payment of liens, and sets how the net award will be held or disbursed. Common protective mechanisms include:

   • A court-approved blocked or escrow account that requires judge or court clerk sign-off for withdrawals;
   • A structured settlement (annuity) that pays regular amounts over time;
   • A custodial account under state custodial law (for smaller sums); or
   • A guardianship of the minor’s property (if long-term court supervision is needed).
7. Disbursement and ongoing court supervision (if any).

   After the court’s order is entered and required instruments (for example, annuity contracts) are in place, the settling defendant or insurer pays according to the order. If funds remain under court supervision, periodic accounting to the court may be required until the minor reaches majority or the court orders otherwise.

Where the law sits in New York

New York law authorizes this kind of protective court oversight through the Civil Practice Law and Rules and related statutes and court practice. For a general reference to the CPLR, see the New York Consolidated Laws, CPLR: https://www.nysenate.gov/legislation/laws/CPLR. If you are considering a guardianship or custodial arrangement, you may also review relevant provisions of New York’s Estates, Powers & Trusts Law (EPTL): https://www.nysenate.gov/legislation/laws/EPTL.

Typical timeline and fees

• Timeline: A straightforward settlement with complete paperwork and consent of interested parties can take a few weeks to a few months. Complex cases with disputed liens, need for a guardian ad litem, or extensive court scheduling can take longer.
• Attorney fees: Fees taken from a minor’s recovery must be reasonable and are subject to court approval. The court will scrutinize contingency fees, costs, and any unusual expenses before allowing them to be deducted from the child’s net award.

Helpful Hints

• Hire a lawyer who regularly handles minor settlements in New York—experience speeds up the process and helps resolve liens efficiently.
• Identify and resolve medical and government liens early; unresolved liens are a frequent cause of delay.
• Consider a structured settlement or blocked account if the award is large; judges often prefer these to protect a minor’s long-term financial interests.
• Expect the court to closely review attorney fees and deductions. Be ready to justify fees with a written fee agreement and an itemized accounting of expenses.
• If both parents agree to a settlement, the court still may want independent review (guardian ad litem) to confirm the child’s best interests are protected.
• Ask your attorney about tax consequences and benefits eligibility (for example, how a settlement might affect Supplemental Security Income or Medicaid eligibility) before finalizing distribution plans.
• Keep clear records: copies of the settlement, court orders, annuity contracts, and bank statements will be important if later accounting is required.

Disclaimer: This article is educational only and not legal advice. Laws change and every case is different. For advice about a particular minor’s claim in New York, consult a licensed New York attorney who handles personal injury settlements for minors.