Protecting Your Child's Settlement: Understanding Minor's Compromises in California

In California, when your child is injured in an accident and a settlement is reached, state law requires judicial approval through a process called a "minor's compromise" — a protective measure designed to ensure the settlement is fair and that funds are properly safeguarded until your child reaches adulthood.

What Is a Minor's Compromise?

A minor's compromise is a court-approved settlement for anyone under 18 years old. California Probate Code Section 3600 mandates that any settlement involving a minor "shall not be valid" without judicial approval. This requirement cannot be waived, even if all parties agree the terms are fair.

The court acts as an independent reviewer to ensure the settlement amount adequately compensates your child and that the funds will be properly managed.

When Is Court Approval Required?

Judicial approval is mandatory for any settlement involving a minor, including personal injury cases, medical malpractice claims, wrongful death actions, and property damage cases where a minor has an interest. There is no amount too small or too large to bypass this requirement.

The Filing Process

A parent or guardian files a petition with the appropriate court. In cases of potential conflict of interest, the court appoints a Guardian ad Litem to act solely in the child's interest.

Required documents include the Petition for Approval (Form MC-350), a proposed order, medical reports, settlement agreement details, and documentation of any liens or expenses. Processing typically takes 4 to 8 weeks.

What the Court Reviews

The judge evaluates whether the settlement amount fairly compensates for the child's injuries, pain and suffering, and medical expenses. The court also assesses case strength and the risks of going to trial.

Attorney fees are reviewed under California Rules of Court 7.955, which generally allows 25% for pre-litigation settlements, 33% after litigation begins, and 40% if an appeal was involved. All medical bills, liens, and costs must be verified and justified.

Most counties require a hearing where the child must attend if 12 or older. The funds become accessible when the child turns 18, though early release can be petitioned for extraordinary circumstances.

If your child has been injured and you need guidance on the settlement process, call us at (415) 495-7800 for a free consultation.