There are special rules that govern personal injury settlements involving minors in Michigan. A minor is a person under the age of eighteen. Under the law, a minor cannot act for himself or herself and therefore a competent adult must be appointed before a lawsuit is filed in court or a settlement can be received.
If a lawsuit has not been filed in Circuit Court, any settlement is governed by the Probate rules.
If the settlement is for less than $5,000.00, the settlement proceeds normally do not need to be held in a restricted account. The requirements of placing settlement proceeds in a restricted account may also be avoided where a structured settlement is used to protect the proceeds for a minor in a personal injury settlement.
In Michigan, a minor and their parent cannot accept a settlement in a personal injury case without the court's approval.
This provision is designed to protect the interests of minors who have been injured in an accident caused by negligence of a third party.
- A judge can refuse a settlement if he or she feels that it provides inadequate compensation for the severity of the injuries or trauma sustained by the child.
- A judge may direct where the money awarded to a minor is held or invested so the money is not squandered by either the minor or their parent.
If a parent and minor are both seeking damages from a car accident, a guardian ad litem needs to be appointed for the minor child to make sure his or her interests are protected. For further information regarding legal issues related to personal injury claims involving minor children, please contact our Ann Arbor personal injury law office for a free consultation.
For more than 45 years, Logeman, Iafrate, & Logeman, P.C. have helped accident victims throughout Michigan recover the benefits they need and deserve.
This article is provided for informational purposes only and does not constitute legal advice. Consult a qualified attorney at Logeman & Iafrate, P.C. for advice regarding your individual situation.
Frequently Asked Questions
Find answers to what matters most about your case and how we work.
What is the age of majority for personal injury settlements in Michigan?
In Michigan, a minor is defined as any person under the age of eighteen. Minors cannot legally accept settlements on their own behalf and require court-appointed representation.
Do all minor settlements require court approval in Michigan?
Yes, in Michigan, a minor and their parent cannot accept a settlement in a personal injury case without the court's approval. This is a legal safeguard designed to protect the child's interests.
What happens to settlement money awarded to a minor?
For settlements under $5,000, the proceeds typically do not need to be held in a restricted account. For larger amounts, a judge may direct where the money is held or invested to ensure it is not squandered and remains available for the minor's benefit.
What is a guardian ad litem and when is one needed?
A guardian ad litem is a court-appointed representative who protects the minor's interests during legal proceedings. One must be appointed when both a parent and minor child are seeking damages from the same accident to ensure the child's interests are separately represented.
Can a judge reject a settlement offer for a minor?
Yes, a judge has the authority to refuse a settlement if they believe it provides inadequate compensation for the severity of the injuries or trauma sustained by the child. The court's primary concern is protecting the minor's best interests.
What is a structured settlement for minors?
A structured settlement is an alternative payment arrangement that can be used to protect settlement proceeds for a minor. This option may help avoid the requirements of placing funds in a restricted account while still ensuring the money is preserved for the child's future needs.
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