How Are Personal Injury Settlements for Minor Children Handled in Missouri?

A minor generally cannot prosecute a lawsuit on his or her own. Instead, Missouri law allows the claim to be brought through a guardian, conservator, or a person appointed as the child’s “next friend.” In personal injury cases, the next friend is commonly one of the child’s parents. The next friend does not personally own the child’s claim. Rather, the next friend acts on the child’s behalf in the lawsuit and settlement process.

Under RSMo. § 507.110, an action on behalf of a minor may be prosecuted by a guardian, conservator, or next friend appointed for the child. The court can formally appoint the next friend for purposes of the case.

Often, yes. RSMo. § 507.184 governs many personal injury settlements involving minors. The statute allows a next friend, guardian ad litem, guardian, or conservator to enter into a settlement on behalf of a minor, but the settlement is not effective until approved by the court.

At a minor settlement hearing, the judge may hear evidence concerning the settlement and determine whether it should be approved. The parties do not necessarily have to litigate the case through trial before seeking approval. In many cases, the child’s attorney negotiates the claim with the insurance company, reaches an agreed settlement, and then asks the court to approve that agreement. The court may also review and approve attorney fees and litigation expenses associated with the child’s claim.

The exact procedure depends on the court and circumstances of the case, but the child’s attorney will generally provide information concerning:

• the accident or incident;
• the child’s injuries and medical treatment;
• the total settlement amount;
• attorney fees and case expenses;
• medical bills or liens; and
• how the child’s net settlement proceeds will be protected.

The parent or other next friend may also be asked questions about the settlement. The judge’s role is to determine whether the proposed resolution is appropriate for the child. Once approved, the court may authorize the next friend or other representative to sign the settlement release on the child’s behalf.

No. Missouri enacted the Missouri Statutory Thresholds for Settlements Involving Minors Act, found at RSMo § 436.700. As of 2026, that statute permits certain claims totaling $35,000 or less to be settled without formal court approval if the statutory requirements are met.

The threshold includes the total settlement, not simply the child’s net recovery after attorney fees or medical expenses. The statute considers medical expenses, liens, attorney fees, and costs when determining whether the claim falls within the statutory limit.

The procedure generally applies when a person having legal custody of the child settles the claim and no guardian ad litem or conservator has already been appointed. The custodian must also complete the affidavit or verified statement required by the statute and satisfy the statute’s requirements for protecting the child’s settlement funds. If all requirements are satisfied, the custodian’s execution of the settlement documents can bind the child without additional court approval.

A child’s personal injury recovery belongs to the child. However, that does not necessarily mean the insurance company simply issues a check to the parent. Missouri law provides several ways to protect settlement proceeds until the child is legally entitled to them. The appropriate method depends on the amount of the settlement, the child’s age, the procedure being used, and the circumstances of the case.

Uniform Transfers to Minors Accounts

For qualifying settlements under § 436.700, the child’s proceeds may be deposited into an account established under the Missouri Uniform Transfers to Minors Act. When an attorney receives the settlement proceeds through a trust account, the statute provides procedures for transferring the child’s money into the appropriate protected account. The purpose is to preserve the settlement funds for the child rather than allowing them to be freely spent by someone else.

Restricted Accounts

In some court-approved settlements, a judge may order settlement funds placed into a restricted bank account or another protected account. The court may restrict withdrawals until the child reaches a certain age or until further court order.

Conservatorships

Larger settlements may require or justify creating a conservatorship for the child’s estate. A conservator manages the child’s property subject to probate court supervision and is generally responsible for preserving and accounting for the child’s assets. Conservatorships can provide significant protection in larger cases, although they also involve additional court oversight and administrative requirements.

Yes, a structured settlement can be particularly useful when a child receives a substantial recovery. Instead of paying the entire settlement in a single lump sum, some or all of the proceeds may be used to fund an annuity that makes payments to the child in the future.

For example, a structure could provide payments when the child turns 18, additional payments during college years, and larger payments later in adulthood. The payment schedule can often be customized based on the child’s needs. Structured settlements can be useful because receiving a large lump sum immediately upon turning 18 may not always be the best financial arrangement. A structure can preserve part of the recovery for later stages of the child’s life.

Generally, money recovered for the child’s personal injuries belongs to the child.

Parents may have incurred medical expenses or other costs because of the injury, and those issues can affect how a settlement is allocated. Medical bills and reimbursement claims may also need to be resolved before the child’s net recovery is determined. But the portion of the settlement belonging to the child is not simply money that a parent can freely spend. That is one of the primary reasons Missouri law requires protected accounts, court approval, conservatorships, or other safeguards in many minor settlement cases.

Usually, the most important issue is making sure the child’s injuries are reasonably understood before a final release is signed. Children may continue growing and developing for years after an accident. Certain injuries may create long-term medical, developmental, orthopedic, neurological, or cosmetic consequences that are not immediately apparent.

Once a valid settlement and release are completed, the personal injury claim is generally finished. For that reason, more serious child injury cases may require medical opinions concerning future treatment, permanent impairment, anticipated surgeries, therapy, or other long-term needs before settlement negotiations are completed.