How a Virginia Court Approves a Minor’s Personal Injury Settlement

Disclaimer: This is educational information only and not legal advice. For legal guidance about your situation, consult a Virginia-licensed attorney or the Virginia State Bar lawyer referral service.

Detailed Answer — Step-by-step overview under Virginia law

When someone under 18 (a minor) reaches a settlement for a personal injury claim in Virginia, the settlement usually needs court oversight and approval so the court can protect the minor’s legal and financial interests. Below are the common steps you should expect. This summary explains the usual process, who participates, and what courts want to see before approving any payment to a minor.

1. 1. Decide whether court approval is required

   Many Virginia courts require formal approval (sometimes called a compromise or settlement approval) before money from a personal injury settlement goes to a minor. Approval protects the minor from unfair or unwise settlements and ensures liens, subrogation and public benefits obligations (like Medicaid) are addressed.

   For general Virginia statutory resources, see the Code of Virginia online: law.lis.virginia.gov/vacode. For court procedures and forms, see the Virginia Judicial System: vacourts.gov.

2. 2. Retain a Virginia attorney who handles minors’ settlements

   An attorney will evaluate the claim, negotiate with insurers, and prepare the required court papers. If you need help finding a lawyer, use the Virginia State Bar referral service: vsb.org.

3. 3. Identify interested parties and unpaid obligations

   The attorney will collect information about:

   • medical bills and provider liens;
   • insurer subrogation or reimbursement claims;
   • Medicaid or other public benefits that may assert a lien or repayment obligation;
   • parents or guardians who may have legal interest or authority over the minor.

   Contact the Virginia Department of Medical Assistance Services (DMAS) for Medicaid lien rules: dmas.virginia.gov.

4. 4. Prepare and file a petition or motion to approve the settlement in the appropriate circuit court

   The attorney typically files a petition (or motion) asking the circuit court where the minor lives to approve the settlement. The filing will attach the settlement agreement, a proposed order, a statement of the case, and documentation of any bills or liens the settlement must resolve. The court will set a hearing date.

5. 5. Appointment of a guardian ad litem (GAL) or next friend review

   The court often appoints an independent guardian ad litem or requires a report from one. The GAL evaluates whether the settlement is fair, in the minor’s best interests, and whether any protective steps (blocked accounts, structured settlement, conservatorship) are needed. A parent or “next friend” may represent the minor in the lawsuit, but courts still frequently require independent review.

6. 6. Provide notice to required parties

   The court will require notice of the petition and hearing to people and entities with legal interests — typically parents, guardians, insurers, medical providers with liens, and public benefits agencies. The court’s rules dictate how notice is given and how much time is required before the hearing.

7. 7. Court hearing: evidence and explanations

   At the hearing the judge will consider:

   • whether the settlement amount is fair relative to the claim and the minor’s injuries;
   • whether liens and repayments (medical providers, Medicaid, subrogation) are handled;
   • whether distribution and future management of funds protect the minor (e.g., blocked bank accounts, court-supervised conservatorship, or structured settlement annuity);
   • whether attorney’s fees and litigation costs are reasonable.

   The guardian ad litem may present a report and recommendation. The judge may ask questions before ruling.

8. 8. Court order approving, modifying, or denying the settlement

   If the court finds the settlement fair and in the minor’s best interest, it will enter an order approving the settlement and directing how to handle the funds. The court may reduce attorney fees, direct payment of liens, and order the remaining funds to be placed in a blocked account, trust, or under the control of a conservator/guardian.

9. 9. Handling funds after approval

   After approval, the settling parties and insurers follow the court order. Common options include:

   • blocked (court-approved) bank account accessible only with court permission;
   • structured settlement annuity providing scheduled payments;
   • creation of a trust or appointment of a conservator/guardian over the minor’s property under court supervision.

   The court may continue limited supervision of the funds until the minor reaches adulthood or as otherwise ordered.

10. 10. Close the case and follow post-approval steps

    Complete any filings required by the court to confirm payments and transfers. If the court appointed a conservator or required periodic accountings, follow those reporting rules until the court ends supervision.

Key documents and issues courts expect to see

• Signed settlement agreement and proposed disbursement instructions.
• Itemized list of medical bills, liens, and demands against the settlement.
• Fee agreement showing attorney fees and how fees were calculated.
• Guardian ad litem report or other independent evaluation.
• Proposed order specifying how to handle and protect the settlement funds.

Where to find Virginia law and court information

For statutory background and more detailed rules, consult:

• Code of Virginia (statutes): https://law.lis.virginia.gov/vacode/
• Virginia Judicial System (court forms and local procedures): https://www.vacourts.gov/
• Virginia Department of Medical Assistance Services (Medicaid and potential liens): https://www.dmas.virginia.gov/
• Virginia State Bar (lawyer referral): https://www.vsb.org/

Helpful Hints

• Start early. Address medical liens, Medicaid, and subrogation demands before the hearing to avoid delays.
• Work with an attorney experienced in minors’ settlements and court petitions in the circuit court where the minor resides.
• Expect the court to ask for an independent guardian ad litem’s report. Courts rely on neutral evaluations to ensure fairness.
• Consider structured settlements or court-supervised blocked accounts to protect funds from wasted spending or creditors.
• Keep clear records of all bills, correspondence with insurers, and settlement documents — the court will want documentation.
• Ask about tax consequences and consult a tax professional when large sums are involved.
• If the minor receives Medicaid or other public benefits, contact the agency early to determine repayment obligations and potential liens.
• If parents are separated or there are custody disputes, notify the court and attorney — additional notice or procedures may apply.

Because procedures and local practice vary among Virginia’s circuit courts, your attorney should confirm local filing requirements, forms, and timelines. For lawyer referral help, contact the Virginia State Bar: https://www.vsb.org/.

Remember: this article explains typical steps under Virginia practice but does not replace legal advice tailored to your facts. Consult a Virginia-licensed lawyer before taking action.