Usually yes. In North Carolina, a judge typically must approve any settlement of a child’s injury claim, and the parent or guardian ad litem who represents the child must attend. The child may be excused, especially if very young, but older children are sometimes asked to appear briefly. Expect a short, formal hearing where the judge reviews the settlement’s fairness, attorney’s fees, medical liens, and how the funds will be safeguarded for the child.
Because minors cannot sign binding releases, courts in North Carolina generally require judicial approval of any compromise of a child’s personal injury claim. The child appears in the case through a parent or other competent adult acting as guardian ad litem (GAL). At the hearing, the judge confirms that the settlement is fair, that medical or benefit liens are addressed, that fees and costs are reasonable, and that the child’s net funds will be protected until adulthood. If funds will be held by the Clerk or a financial institution, the court typically orders how to deposit, restrict, and later disburse those funds.
In practice, parents/GALs attend. The child’s attendance depends on age and the judge’s preference. Many judges do not require a very young child to come; a teenager may be asked a few brief questions about understanding and voluntary acceptance.
Representation of the minor: The child must act through a general or testamentary guardian, or a guardian ad litem, in the civil case. Courts often appoint a GAL if one is not already in place.
Proof the settlement is fair: Bring a concise summary of the claim (injury, treatment, prognosis), total settlement amount, attorney’s fee agreement, costs, and the proposed distribution showing liens and the child’s net.
Liens must be handled: Medical provider and benefit liens (for example, Medicaid) must be paid or compromised from the settlement per statute.
Protection of the funds: The court will require that the child’s net proceeds be deposited in a protected form—commonly (a) deposit with the Clerk of Superior Court (often used when funds from any one source are at or under statutory thresholds), (b) a restricted/blocked bank account with no withdrawals absent court order, (c) a guardianship of the estate if ongoing management is needed, or (d) a structured settlement annuity.
Limited use before age 18: If funds are held by the Clerk, withdrawals before age 18 are allowed only by court order and only for the child’s necessities and best interests, not to replace a parent’s basic support obligations. Receipts or vouchers will be required.
Settle the case in principle: Reach agreement with the insurer/defendant, subject to court approval.
File for approval: In a pending lawsuit, your attorney files a motion for approval; if no suit is filed, counsel typically commences a brief special proceeding or friendly action seeking judicial approval and appointment of a guardian ad litem if needed.
Prepare the packet: Settlement statement; fee agreement; medical bills and records summaries; lien letters (Medicaid/Medicare/ERISA/provider); proposed order; and a plan to safeguard funds (for example, proof of proposed restricted account or Clerk deposit).
Attend the hearing: The parent/GAL appears; counsel presents the settlement, explains liens, fees, and protections for the funds. The judge may place the GAL under oath and ask brief questions. The child may or may not be required to attend, depending on age and local practice.
Court order & funding: After approval, the judge enters an order directing payments (fees/costs, liens) and where the child’s net funds must be deposited. Funds are then disbursed accordingly, and proof of deposit is typically filed.
After the hearing: If funds are with the Clerk or under a guardianship, any early withdrawals require court approval and must be documented with receipts. When the child turns 18, the funds are released to the child absent a different, lawful arrangement.
North Carolina Rules of Civil Procedure, Rule 17 – Requires that minors be represented in court (by a general guardian, testamentary guardian, or guardian ad litem), which is why a GAL or parent in that role must attend the approval hearing.
G.S. 44-49 and G.S. 44-50 – Create and limit health care provider liens on personal injury recoveries. Judges typically require proof these liens are paid or properly compromised from the settlement.
G.S. 108A-57 – Establishes the State’s Medicaid lien on third-party recoveries; the court will expect confirmation of Medicaid’s lien amount and its satisfaction from the settlement.
G.S. 7A-111 – Allows the Clerk of Superior Court to receive, invest, and disburse certain funds payable to a minor (for example, from a settlement) and explains limits on early disbursements and release at age 18.
G.S. 35A-1252 – Describes the powers and duties of a guardian of the estate, which may be required when a child’s settlement funds need ongoing management beyond a simple restricted account or Clerk deposit.
Skipping approval: Without a court-approved settlement, a release signed for a minor’s claim can be challenged later. Always obtain judicial approval.
Not addressing liens: Failing to resolve medical or benefit liens (including Medicaid) can jeopardize the settlement and expose the GAL or parent to claims.
Using funds for routine support: Courts generally won’t allow a child’s funds to replace a parent’s ordinary support obligations. Early withdrawals must be for the child’s necessities and in the child’s best interest, with receipts.
Poor fund protection: Depositing the child’s net into a regular account or allowing access without a court order can violate the approval order and lead to personal liability.
Missing paperwork: Delays happen when the court lacks lien letters, medical bill summaries, fee agreements, or a clear plan for safeguarding funds.
Timing and local practice vary: Some courts allow remote hearings; others require in-person testimony. Procedures and forms can differ by county, and requirements can change.
If you’re preparing to settle a child’s injury claim and need court approval, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-313-2737.
Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney–client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.
