In Georgia, a parent can settle a child’s injury claim without a judge only when the total settlement is $25,000 or less. Above that, a court has to approve it. If the child’s net share is over $25,000, a conservator must also be appointed, unless the money is structured or placed in a trust. These rules come from O.C.G.A. § 29-3-3.
Who Can Settle a Child’s Claim
Usually the child’s parents, acting as natural guardians, settle the claim. After a divorce, a parent with sole custody acts alone. If the parents never married and the father has not legitimated the child, the mother acts alone (O.C.G.A. § 19-7-25). If a probate court has already appointed a conservator for the child, only the conservator can settle.
When the gross settlement is over $25,000, Georgia law requires court approval. Insurers usually insist on it, because a settlement that skips the required steps may not bind the child.
The $25,000 Rules at a Glance
| Settlement size | Court approval? | Conservator? | What the parent must do |
|---|---|---|---|
| Gross settlement of $25,000 or less | No | No | Hold and use the money for the child, and be able to account for it |
| Gross over $25,000, net $25,000 or less | Yes | No | Get the settlement approved, then hold and account for the money |
| Net over $25,000 | Yes | Yes, unless structured or put in trust | A conservator settles, receives and manages the money under court supervision |
Gross means the present value of everything all settling parties pay, including fees, expenses and structured payments. Net means the gross amount minus attorney’s fees, litigation expenses, enforceable liens paid from the settlement, and the present value of money paid to the child after age 18 or placed in a trust the court approves or creates.
Which Court Approves the Settlement
If no lawsuit has been filed, the probate court approves the settlement. If a lawsuit is pending, the court where it is pending has exclusive authority to approve it. That court can decide whether a hearing is needed. If the lawsuit was dismissed and the court did not keep the case, the probate court approves instead. Once a settlement is approved, it is final and binding on everyone, including the child.
Structured Settlements and Trusts
Many families avoid a conservatorship by structuring the settlement. The court may approve paying up to $25,000 before the child turns 18, with the rest paid later, often through an annuity. It can also delay all payments until 18. A court-approved trust is another option, especially for larger settlements or children with ongoing medical needs.
What a Conservatorship Involves
- A probate court appointment and a bond
- An inventory and spending plan, filed within two months, for the court to approve
- Yearly reports with an updated plan
- A petition for final discharge when the child turns 18
It protects the child, but it takes time and paperwork, which is why structured settlements are common.
Deadlines Work Differently for Children
Georgia generally pauses the two-year injury deadline until a child turns 18 (O.C.G.A. § 9-3-90). Parents should file their own claim for the child’s medical bills within two years of the injury. In malpractice cases, a child injured before age 5 usually must sue by age 7, a child 5 or older gets two years, and strict outer limits apply. See how long you have to file a claim in Georgia.
Frequently Asked Questions
The law does not require one, but court approval, liens and structured settlements are much easier with an attorney who handles them routinely. Many judges also look closely at fees and terms when a child is involved.
No. A parent who receives the money must hold and use it for the child and be able to account for it. A conservator can spend only under the court-approved plan.
A conservatorship generally ends at 18. The conservator asks the court for a final discharge, and the remaining funds go to the young adult. In a structured settlement, payments follow the schedule the court approved.
Once a required court approval is granted, yes. The settlement is final and binding on everyone, including the child. Without required approval, it may not be. Learn more about releases in Georgia settlements.
Questions About Your Child’s Injury Claim?
If your child was hurt in a crash, talk with Jonathan Flack before you sign anything from an insurance company. Request a free consultation.
This article is general information about Georgia law, not legal advice for any specific situation. Laws change and outcomes depend on facts particular to each case. Reading this page or contacting Flack Injury Law through this website does not create an attorney-client relationship. Do not send confidential information until an attorney-client relationship has been established.