Settling a Personal Injury Claim for a Minor in South Carolina: Court Approval Requirements Explained
When a child is injured in South Carolina, any settlement of their personal injury claim must be approved by a circuit court judge — a requirement that protects the minor's interests but adds procedural steps that families and attorneys must follow carefully.
Children are injured in car accidents, on business premises, by negligent adults, and in dozens of other circumstances every day in South Carolina. When the injured person is a minor — under 18 years old — the legal framework for resolving their personal injury claim is materially different from an adult case, primarily because the law requires judicial oversight of any settlement to ensure the minor's interests are protected.
The Court Approval Requirement
Under South Carolina law, a settlement of a personal injury claim belonging to a minor cannot be finalized by the parents or guardians alone. The settlement must be approved by a circuit court judge before it is binding. This requirement exists because a minor cannot legally contract — and therefore cannot waive their own legal rights — without judicial oversight designed to ensure the settlement is fair and adequate given the nature and extent of the injury.
The procedural vehicle for obtaining court approval varies depending on the amount of the settlement:
- Settlements under $25,000. The probate court or family court may approve settlements in this range through a relatively streamlined process. An attorney petitions the court, provides documentation of the injury, the settlement terms, and the proposed disposition of funds, and the court conducts a review — sometimes with a hearing and sometimes on the papers alone.
- Settlements $25,000 and above. Circuit court approval is required. The process is more formal: a petition is filed detailing the accident, injuries, medical treatment, proposed settlement amount, attorney's fees, litigation costs, and the proposed arrangement for protecting and investing the minor's net recovery.
Where the Money Goes: Protecting the Minor's Recovery
Court approval includes scrutiny of how the net settlement proceeds — after attorney's fees and litigation costs — will be held until the minor reaches age 18. Options include:
- Placement with a court-supervised custodian account
- A structured settlement annuity that pays out at or after age 18
- A guardianship of the property (formal court-supervised management of the funds)
The court's goal is to ensure that a parent or guardian does not simply spend the child's settlement funds. A structured settlement or annuity — paying a guaranteed stream of income when the child becomes an adult — is frequently the most tax-advantaged and legally protective option.
Why This Process Protects Your Child
The court approval requirement prevents an insurer from pressuring parents into an inadequate settlement and eliminates the risk that parents acting in good faith but without legal knowledge will accept an amount far below the actual value of the claim. For serious childhood injuries — growth plate fractures, orthopedic injuries requiring future surgery, head injuries with developmental implications — the value of the claim may not be fully apparent for years. Court review forces the parties to address these long-term issues before settlement is final.
How Traywick Law Helps
Our office handles personal injury claims for minors throughout the Lowcountry, including petitions for court approval and structured settlement arrangements. Visit the Traywick Legal Blog for more analysis.
Talk to a Charleston Attorney
If you have questions about how this issue affects your situation in Charleston, Mount Pleasant, or anywhere in the Lowcountry, contact Traywick Law Offices for a free consultation. Call (843) 343-5092.
Disclaimer: This article is provided for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Every case is different — please consult an attorney about your specific situation.
Questions About Your Legal Rights?
David Traywick offers free consultations for personal injury and consumer law matters in Charleston, SC.