When a minor settlement reaches the $50,000 threshold, a guardian ad litem, or court-appointed representative is required by the courts to ensure payments are received and managed in the best interest of the child. This representative may be a legal guardian if the court finds no conflict of interest.

Settlements may be subject to being voided if a party does not closely follow these statutes and probate rules. One of the most notable recent cases where this happened was in Florida’s Fourth District Court of Appeal in Allen v. Montalvan.

Court approval may or may not be necessary when the settlement is less than $50,000. Here is an overview of the rules in Florida: Minor Settlements Flow Chart

If a gross settlement does not exceed $15,000:

  • Court approval is not required unless civil action is filed
  • Legal guardianship is not required
  • Guardian ad litem, or court-appointed representative, is not required

If a gross settlement is between $15,000.01 and $49,999.99:

  • Court approval is required
  • Legal guardianship is not required if the net settlement to the minor does not exceed $15,000
  • Legal guardianship is required if the net settlement to the minor exceeds $15,000
  • A court-appointed representative is not required but is within the court’s discretion to decide

If a gross settlement is $50,000 or greater:

  • Court approval is required
  • Legal guardianship is required
  • A court-appointed representative is required but may be waived by the court if the legal guardian has no conflict of interest
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