Settling a Child's Injury Claim in Georgia: Court Approval and the $25,000 Rule

Gross vs. net settlement

The statute uses two numbers. The gross settlement is the full amount, including attorney's fees, case expenses, and the present value of any structured payments or trust. The net settlement is what's left after attorney's fees, expenses, and liens are paid, and after subtracting amounts payable after the child turns 18 and amounts placed in a court-approved trust. Which rule applies depends on both.

The three tiers under O.C.G.A. § 29-3-3

• Gross settlement of $25,000 or less: the natural guardian (usually a parent) can settle the claim and receive the money without court approval and without becoming a conservator. The parent still holds the funds for the child and must account for them.
• Gross over $25,000, but net $25,000 or less: the settlement must be submitted for court approval, but no conservator is needed. The court is the probate court if no lawsuit has been filed, or the court where the case is pending if one has.
• Gross and net both over $25,000: a conservator must be appointed to settle the claim and receive and manage the money, and the settlement is submitted to the probate court or the court where the case is pending. Conservators are generally bonded and report to the court.

Structured settlements and trusts

With a court order finding it's in the child's best interest, a settlement doesn't have to be paid as one lump sum. It can be structured over time or placed in a trust the court approves or creates, and payments can be deferred until the child turns 18. This often makes sense for larger settlements, because it protects the money until the child is an adult and can reduce the need for ongoing conservatorship. An approved settlement is final and binding on everyone, including the child.

Deadlines for children's claims

Georgia generally pauses (tolls) the statute of limitations for a child's own injury claim until the child turns 18 (O.C.G.A. § 9-3-90), but the parent's claim for the child's medical expenses has its own clock. Claims against a city, county, or the state, such as a school bus crash, have short notice deadlines that may not be extended for minors. Don't assume you have years. Our statute of limitations guide explains the exceptions.

Liens on a child's settlement

If Medicaid or a health plan paid the child's medical bills, it may have a right to repayment from the settlement. Those amounts come out before the net settlement is calculated, so they can affect which tier applies. See our guide to Medicare, Medicaid, and health insurance liens.

Practical tips for parents

• Don't sign a release on your child's behalf before you understand what it covers. A release for a small amount can end a claim that turns out to be serious.
• Children's injuries can take time to show their full effect, especially head injuries and injuries to growing bones. Ask the doctors about long-term effects before settling.
• Keep every medical bill, school absence record, and note from teachers or counselors.
• Expect the court to look closely at the attorney's fee and expenses. That protects your child.

Frequently Asked Questions