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 her/himself 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.