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Court Approval of Minor Settlements in Georgia (§ 29-3-3)

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  • Court Approval of Minor Settlements in Georgia (§ 29-3-3)

If your child was hurt and the case settles, Georgia law may require a judge to approve the deal. The key number is $25,000. If the total settlement is $25,000 or less, a parent can settle without court approval. If it is more than $25,000, the settlement must go to a court. If the child’s net share is also more than $25,000, a court-appointed “conservator” must handle the money.

What the Law Says

O.C.G.A. § 29-3-3, Compromise of minor’s claim, states in part:

(a) As used in this Code section, the term:

(1) “Gross settlement” means the present value of all amounts paid or to be paid in settlement of a minor’s claim, including cash, expenses of litigation, attorney’s fees, and any amounts allocated to a structured settlement or other similar financial arrangement. Such term shall include the total amount paid or to be paid on behalf of all settling parties.

(2) “Net settlement” means the gross settlement reduced by:

(A) Attorney’s fees, expenses of litigation, and legally enforceable liens against the settlement that are to be paid from the settlement proceeds;

(B) The present value of amounts to be received by the minor after reaching the age of majority; and

(C) The present value of amounts to be placed into a trust that the probate court or court in which the action is pending approves or creates for the benefit of the minor.

(b) If the minor has a conservator, the only person who can compromise a minor’s claim is the conservator.

(c)(1) If the proposed gross settlement of a minor’s claim is $25,000.00 or less, the natural guardian of the minor, without becoming the conservator of the minor and without any court approval:

(A) May compromise the claim; or

(B) May receive payment of and shall thereafter hold and use the settlement for the benefit of the minor and shall be accountable for the same as provided in Code Section 29-3-1.

(2) If the proposed gross settlement of a minor’s claim is more than $25,000.00, and the net settlement is $25,000.00 or less:

(A) The settlement shall be submitted for approval to:

(i) The probate court if no legal action has been initiated, or

(ii) The court in which the legal action is pending if legal action has been initiated, and such court shall have exclusive jurisdiction to approve the settlement, except as provided in subsection (g) of this Code section;

(B) No conservator shall be required to compromise the claim; and

(C) No conservator shall be required to receive payment of the settlement; provided, however, that the natural guardian receiving payment of the settlement shall thereafter hold and use the settlement for the benefit of the minor and shall be accountable for the same as provided in Code Section 29-3-1.

(3) If the proposed gross settlement of a minor’s claim is more than $25,000.00, and the net settlement is more than $25,000.00:

(A) A conservator shall be required to compromise the claim;

(B) A conservator shall be required to receive payment of the settlement and shall thereafter hold and use the settlement for the benefit of the minor and shall be accountable for the same as provided in Code Section 29-3-1; and

(C) Such conservator shall submit the settlement for approval to:

(i) The probate court if no legal action has been initiated, or

(ii) The court in which the legal action is pending if legal action has been initiated, and such court shall have exclusive jurisdiction to approve the settlement, except as provided in subsection (g) of this Code section.

Subsection (e) makes an approved settlement final:

(e) Any settlement entered consistent with the provisions of this Code section shall be final and binding upon all parties, including the minor.

You can read the full statute on the Georgia General Assembly’s official code site.

In Plain English

A “minor” is anyone under 18. Minors cannot sign binding contracts, so they cannot settle their own injury claims. Georgia law sets rules for who can settle for them and when a judge must check the deal. The goal is to protect the child’s money from being wasted or misused.

Start with some terms. The “natural guardian” is normally the child’s parent. A “conservator” is a person the probate court appoints to manage a child’s money. A conservator must file a bond and report to the court. To “compromise” a claim means to settle it. The “gross settlement” is the whole amount paid, including the lawyer’s fee and costs. The “net settlement” is what is left for the child after fees, costs, and liens are taken out. Money the child will not receive until age 18, and money placed in a court-approved trust, are also subtracted from the net.

The statute creates three tiers. In the first tier, the gross settlement is $25,000 or less. A parent can settle the claim and receive the money with no court involvement. The parent must still hold and use the money for the child’s benefit and can be held to account for it.

In the second tier, the gross settlement is over $25,000 but the net to the child is $25,000 or less. This is common, because attorney fees and medical liens often eat up a big share. The settlement must be approved by a court. If no lawsuit has been filed, that is the probate court. If a lawsuit is pending, it is the court hearing the case. But no conservator is needed. The parent can receive the money after the judge approves.

In the third tier, both the gross and the net are over $25,000. Now a conservator is required. The conservator, not the parent as such, must agree to the settlement, submit it to the court, and receive the money. A parent can ask to be appointed conservator, but the parent must go through the probate court process.

The court’s job is to decide whether the settlement is in the child’s best interest. Under subsection (d), the court can approve creative arrangements. These include a “structured settlement,” where the money is paid out over time, and a trust. The court can also approve deals that delay most of the money until the child turns 18, with no more than $25,000 paid out before then. Under subsection (f), the judge may hold a hearing but does not have to if the paperwork shows the rules were followed.

Once a settlement is approved in line with this statute, it is final and binds everyone, including the child. The child cannot reopen the claim later. That finality is why insurers and defendants insist on court approval. Without it, the child could try to sue again after turning 18.

Example

Eight-year-old Lily is bitten by a neighbor’s dog in Marietta on April 4, 2026. She needs stitches and a follow-up surgery. Her medical bills are $9,000. The neighbor’s homeowners insurer offers $60,000 to settle. Lily’s parents hire a lawyer on a one-third contingency fee.

The gross settlement is $60,000. The lawyer’s fee is $20,000 and case costs are $1,000. The hospital has a valid $9,000 lien. That leaves a net of $30,000 for Lily. Because both the gross and the net are over $25,000, this is a third-tier case. Lily’s mother petitions the probate court in the county where the family lives to be appointed conservator. She then submits the settlement to the probate court for approval. The judge approves it, and the mother receives the $30,000 as conservator. She must manage it for Lily and report to the court.

If the insurer had offered $40,000 instead, the math changes. Fee of $13,333, costs of $1,000, and the $9,000 lien leave a net of about $16,667. The gross is over $25,000 but the net is under. Court approval is still required, but no conservator is needed. Lily’s mother can receive the money after the judge signs off.

Key Points to Remember

  • Minors cannot settle their own claims; a parent or conservator acts for them.
  • A gross settlement of $25,000 or less needs no court approval.
  • A gross settlement over $25,000 must be approved by the probate court or the court hearing the case.
  • If the net to the child is also over $25,000, a conservator must be appointed to settle and receive the money.
  • Net means the amount left after fees, costs, liens, deferred payments, and court-approved trusts.
  • The court can approve structured settlements and trusts.
  • A properly approved settlement is final and binding on the child.

Related Georgia Laws

Official Sources

This page is general legal information, not legal advice. Laws change and every case is different. Talk to a licensed Georgia attorney about your situation.