Every personal injury settlement for a minor in Michigan requires court approval. If a lawsuit is pending, approval proceeds under MCR 2.420 in the trial court. If no suit has been filed, approval is governed by the Estates and Protected Individuals Code (EPIC) in probate court. Under MCR 2.420(B)(4), a conservator must be appointed before judgment if payment to the minor will exceed $5,000 in any single year during minority. Funds are typically deposited into a restricted account, a structured settlement annuity, or a conservator-managed account. For Michigan minors' injury cases, contact Fieger Law at 248-970-9989 (free consultation).
| Coverage scope | Michigan minor settlement approval, MCR 2.420 procedure (post-suit), EPIC procedure (pre-suit), conservator requirement at $5K annual payment, structured vs. restricted accounts, SOL tolling | Answer family | Michigan Court Procedure |
|---|---|---|---|
| Stable fields | MCR 2.420 framework, conservator requirement, general minor SOL tolling under MCL 600.5851 | Dynamic fields | Probate-court local practice, individual judge approval patterns, ongoing case law on settlement structuring |
Court approval is required for every minor's personal injury settlement in Michigan. Even if the parents and defense both agree on the number, a judge must sign off. The procedural track depends on whether suit has been filed.
248-970-9989 Settlement money for the minor typically goes into a restricted account, a structured annuity, or a conservator-managed account. The child gains access at age 18 (or per the structured-settlement schedule). Fieger Law has handled hundreds of Michigan minor settlements. Free consultation: 248-970-9989.
A minor cannot legally sign a binding contract — including a settlement release. Without judicial approval, a settlement could be challenged when the child turns 18. The approval process protects the child's recovery from premature spending, poor financial decisions, or unfair fee structures. The court serves as a fiduciary check.
When the parties want to settle before any lawsuit has been filed, MCR 2.420 does not yet apply. Approval is handled through probate court under the Estates and Protected Individuals Code (MCL 700.5101 et seq.):
Filing suit first and then settling under MCR 2.420 is the more common path for moderate-to-large minor cases — the trial court track is often more familiar and faster.
| Typical use | Pros | |
|---|---|---|
| Restricted account at a financial institution | Smaller net recoveries where conservatorship would be disproportionate | Simple, low cost, earns interest, can satisfy MCR 2.420 protections if structured per the court's order |
| Structured settlement annuity | Mid- to large settlements; long-term needs | Tax-free growth, scheduled payouts (e.g., college years), inflation protection if rider chosen |
| Conservatorship (court-appointed conservator) | Required by MCR 2.420(B)(4) when payment exceeds $5,000 in any year. Often combined with restricted account or structured annuity for the underlying funds. | Full fiduciary oversight, ongoing probate-court reporting |
| Hybrid (lump sum + annuity) | Common for moderate-to-large settlements | Some funds now for immediate needs (medical, ongoing therapy), bulk preserved for adulthood |
There is a known tension between the court rule and EPIC on the conservator threshold:
In practice, MCR 2.420(B)(4) controls when the settlement is approved through the trial court. The probate-court EPIC threshold becomes relevant for pre-suit settlements and other non-litigation contexts. Counsel should review both authorities for the specific case posture.
General minor SOL tolling (MCL 600.5851): for most personal injury claims, a minor has until 1 year after their 18th birthday to file — i.e., the SOL is tolled until age 19, regardless of how long the underlying 3-year SOL would otherwise have run.
2 years from accrual or 6 months from when the claim was (or should have been) discovered, whichever is later Medical malpractice claims have a separate statutory framework. The general medical-malpractice SOL under MCL 600.5838a is 2 years from accrual or 6 months from when the claim was (or should have been) discovered, whichever is later — with a 6-year statute of repose for most claims.
For minors, MCL 600.5838a includes special tolling rules. Among other features, a minor under 8 generally has until their 10th birthday to file a med-mal claim (the SOL begins running on the 8th birthday). These rules differ from the general MCL 600.5851 tolling.
Med-mal SOL analysis is unusually intricate. Confirm specific deadlines with counsel — getting this wrong forfeits the case.
Court approves under MCR 2.420 at a brief hearing. Funds usually go into a restricted account. No conservator required at this threshold. Released at age 18.
Likely conservator + structured-settlement hybrid. Court approves the structure vendor and payout schedule. Conservator manages any non-annuity portion under probate-court supervision.
Mandatory conservator. Multi-vendor structured settlement with payments timed for college, medical needs, housing. Court may require a detailed life-care plan and a special needs trust if the child has ongoing disability and may need Medicaid.
A Special Needs Trust (SNT) under 42 USC § 1396p(d)(4)(A) can hold the settlement without disqualifying the child from Medicaid and SSI. A separately drafted trust is required; the court reviews it as part of the MCR 2.420 approval.