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Rule 2.420.Settlements and Judgments for Minors and Legally Incapacitated Individuals

Current through May 1, 2026 · Last verified July 6, 2026

In one sentenceRule 2.420 requires a judge to personally review and approve any settlement, consent judgment, or wrongful-death distribution involving a minor or legally incapacitated person, appoint a guardian ad litem when the person handling the case would also share in the recovery, and route larger payments through a probate-court-appointed conservator.

Full Text of Rule 2.420

Text sizeJump to: (A) (B)

(A) Applicability. This rule governs the procedure to be followed for the entry of a consent judgment, a settlement, or a dismissal pursuant to settlement in an action brought for a minor or a legally incapacitated individual person by a next friend, guardian, or conservator or where a minor or a legally incapacitated individual is to receive a distribution from a wrongful death claim. Before an action is commenced, the settlement of a claim on behalf of a minor or a legally incapacitated individual is governed by the Estates and Protected Individuals Code.
(B) Procedure. In actions covered by this rule, a proposed consent judgment, settlement, or dismissal pursuant to settlement must be brought before the judge to whom the action is assigned, and the judge shall pass on the fairness of the proposal.
(1) If the claim is for damages because of personal injury to the minor or legally incapacitated individual,
(a) the minor or legally incapacitated individual shall appear in court personally to allow the judge an opportunity to observe the nature of the injury unless, for good cause, the judge excuses the minor's or legally incapacitated individual’s presence, and
(b) the judge may require medical testimony, by deposition or in court, if not satisfied of the extent of the injury.
(2) If the next friend, guardian, or conservator is a person who has made a claim in the same action and will share in the settlement or judgment of the minor or legally incapacitated individual, then a guardian ad litem for the minor or legally incapacitated individual must be appointed by the judge before whom the action is pending to approve the settlement or judgment.
(3) If a guardian or conservator for the minor or legally incapacitated individual has been appointed by a probate court the terms of the proposed settlement or judgment may be approved by the court in which the action is pending upon a finding that the payment arrangement is in the best interests of the minor or legally incapacitated individual, but no judgment or dismissal may enter until the court receives written verification from the probate court, on a form substantially in the form approved by the state court administrator, that it has passed on the sufficiency of the bond and the bond, if any, has been filed with the probate court.
(4) The following additional provisions apply to settlements for minors.
(a) If the settlement or judgment requires payment of more than $5,000 to the minor either immediately, or if the settlement or judgment is payable in installments that exceed $5000 in any single year during minority, a conservator must be appointed by the probate court before the entry of the judgment or dismissal. The judgment or dismissal must require that payment be made payable to the minor’s conservator on behalf of the minor. The court shall not enter the judgment or dismissal until it receives written verification, on a form substantially in the form approved by the state court administrator, that the probate court has passed on the sufficiency of the bond of the conservator.
(b) If the settlement or judgment does not require payment of more than $5,000 to the minor in any single year, the money may be paid in accordance with the provisions of MCL 700.5102.
(5) If a settlement or judgment provides for the creation of a trust for the minor or legally incapacitated individual, the circuit court shall determine the amount to be paid to the trust, but the trust shall not be funded without prior approval of the trust by the probate court pursuant to notice to all interested persons and a hearing.
End

Amendment History

Michigan tracks the orders that adopt and amend its Court Rules in a separate administrative record rather than printing a history note beneath each rule in the compiled rules text reproduced here. The text above is verified current through the source’s own May 1, 2026 update; for the full order-by-order history of this rule, see the Michigan Supreme Court’s rules and orders page.

Plain-English Summary

A minor or legally incapacitated person can't fully protect their own interests in settling a lawsuit, so Rule 2.420 puts a judge in that role once a case has already been filed. Any proposed consent judgment, settlement, or dismissal on a settlement has to go before the assigned judge, who passes on whether the deal is fair. For a personal injury claim, that usually means the injured minor or incapacitated person has to appear in court so the judge can see the injury firsthand, unless the judge excuses that for good cause, and the judge can require medical testimony if the extent of the injury isn't clear from the papers alone.

If the next friend, guardian, or conservator handling the case would also share in the settlement or judgment, a separate guardian ad litem has to be appointed to protect the minor's or incapacitated person's interests, since the person otherwise steering the case has a competing stake in the outcome. Where a probate court has already appointed a guardian or conservator, the trial court can approve a payment arrangement as being in that person's best interest, but can't enter judgment or dismiss the case until it gets written confirmation that the probate court has signed off on the bond. And for a minor specifically, any payment over $5,000 (whether all at once or over installments exceeding that amount in a single year) requires a probate-appointed conservator to receive it, while smaller payments can go out under the informal procedure the Estates and Protected Individuals Code allows; a settlement that funds a trust for the minor or incapacitated person needs the probate court's approval of the trust itself, after notice to interested persons and a hearing.

Frequently Asked Questions

Does a judge have to approve a settlement for a minor's injury claim?

Yes. Any consent judgment, settlement, or dismissal on a settlement involving a minor or legally incapacitated person has to go before the assigned judge, who must find the deal fair before approving it.

Do I need a separate guardian ad litem if I'm already the next friend handling my child's case?

Yes, if you would also share in the settlement or judgment yourself. Because you'd have a competing interest, the court has to appoint a separate guardian ad litem to look out for the minor's interests specifically.

What happens if a minor's settlement is worth more than $5,000?

A probate court has to appoint a conservator, and payment must go to that conservator on the minor's behalf; the trial court can't enter judgment or dismiss the case until it confirms the probate court has approved the conservator's bond.

Source & verification. The rule text is reproduced verbatim from the official Michigan Court Rules (MCR 2.420). Prescribed by the Supreme Court of Michigan (Mich. Const. 1963, art. VI, § 5). The plain-English summary is original and written by us. Last verified July 6, 2026. · Official source
Also known as: settlement for minor Michigan lawsuitguardian ad litem settlement approvalminor settlement conservator Michigancourt approval of minor settlement