Detailed Answer

When a person under 18 (a minor) receives a settlement payment in Colorado—most often after a personal-injury claim, medical-malpractice claim, or other civil claim—the court commonly must review and approve the settlement to protect the minor’s legal and financial interests. The review process is governed by Colorado court rules and probate/guardianship principles designed to ensure the settlement is fair and in the minor’s best interests.

Who has to appear? In many Colorado cases the court expects the minor’s parent or legal guardian to appear at the hearing. The minor usually does not need to attend; judges commonly prefer the minor not be present except in unusual situations (for example, to hear from an older minor about the settlement). If the minor is older and the court thinks the child can express meaningful preferences, the judge may ask the minor questions or allow testimony.

An attorney for the minor (or for the parent/guardian) will often appear. If the court appointed a guardian ad litem (a lawyer or neutral guardian whose job is to look after the minor’s interests), that guardian ad litem will usually attend and report to the court. If you are the settling party or a parent and you have an attorney, your attorney will typically appear and present the settlement paperwork, explain the terms to the judge, and answer questions. If you do not have an attorney, the court may expect the parent/guardian to appear and be prepared to explain why the settlement is fair.

What does the court review? The judge will look at the written settlement documents and supporting records. Typical items the judge will want to see include:

• The settlement agreement showing total amount and how it will be paid (lump sum, structured payment, annuity, etc.).
• A petition or proposed order asking the court to approve the settlement (sometimes titled “Petition to Approve Compromise of Minor’s Claim”).
• Medical bills, lien information, or statements of outstanding obligations the settlement will pay.
• An accounting or plan for how the minor’s funds will be held, spent, or invested (for example, whether money will be placed in a blocked account, conservatorship, or structured settlement).
• Evidence that any required releases for third-party liens (healthcare providers, Medicaid, Medicare, insurers) are addressed.

Typical judicial questions and concerns. At the hearing the judge will usually ask the adult representative or attorney: Was the settlement negotiated fairly? Do the settlement terms adequately compensate the minor for injuries and expenses? How will the funds be protected for the minor’s future needs? How will liens and creditors be satisfied? Is there any conflict of interest involving the guardian, attorney, or insurer? The judge may also probe whether the parent or guardian will use funds for the child’s benefit.

Outcome of the hearing. If the judge is satisfied, the court will sign an order approving the settlement. That order may direct how the settlement funds are handled—for example, requiring funds to be placed in a blocked bank account, a conservatorship under Colorado probate rules, or a structured settlement (annuity). If the judge is not satisfied, the court can deny approval or request further documentation or changes (for instance, more detail about liens or a better method for preserving funds).

Authority and law. Colorado follows civil procedure and guardianship/probate practices that require court protection for settlements on behalf of minors. See Colorado Rules of Civil Procedure, Rule 17 (Infants and Incompetent Persons) for the general rule that a guardian or guardian ad litem may be appointed and that the court may require approval when a minor’s claim is being settled. You can review that rule on the Colorado Judicial Branch website: https://www.courts.state.co.us/Courts/Supreme_Court/Rules/Rules.cfm?rule=17

For issues involving custodial control of a minor’s property or conservatorship (if the court requires a conservatorship to protect funds), Colorado’s guardianship and conservatorship provisions are found in the Colorado Revised Statutes. See the Colorado Legislature’s pages on guardianship and conservatorship for the specific statutory framework: https://leg.colorado.gov/topics/guardianship

Can a hearing be waived? In some limited circumstances the court may approve a settlement on written submissions without a live hearing. Whether the court will accept papers instead of an in-person or virtual hearing depends on the local court’s practices, the complexity of the settlement, and whether any party requests a hearing. Many practitioners still request an in-person or remote hearing to make the process smoother and to give the judge confidence in approving the settlement.

Timing and scheduling. Expect the process to take several weeks to months between filing the petition, resolving liens, preparing a proposed order, and setting the hearing. If a conservatorship or guardianship of the minor’s property is required, those additional proceedings may add time and paperwork.

Practical differences by case type. If the settlement involves a structured settlement (annuity), the court will want to review the proposed annuity, the insurance company handling it, and proof that the annuity provides secure payment streams. If the settlement is a lump-sum that will be placed in a blocked account or conservatorship, the judge will want details about the account, who will control it, and how distributions will be authorized.

Helpful Hints

• Bring original settlement documents and copies for the judge, court clerk, and any attorneys present.
• Bring evidence of medical bills, liens, or outstanding obligations the settlement will address.
• Ask your attorney to prepare a clear “petition to approve compromise” and a proposed order describing how funds will be handled.
• Dress professionally. Court hearings are formal; appearance matters.
• If you are the parent or guardian and you cannot attend, notify the court and consider having your attorney or guardian ad litem appear in your stead.
• Be ready to explain why the settlement is fair and how the minor’s money will be preserved for future use (education, medical care, living expenses).
• Address liens before the hearing when possible. Judges often ask whether medical providers, insurers, or government healthcare programs have been repaid.
• Consider a conservatorship or blocked account if the lump sum is large; the court may require this for substantial settlements.
• If the minor is close to turning 18, discuss timing: approval after 18 is often unnecessary because the person is then an adult and can sign away rights themselves.
• Communicate with the court clerk ahead of time about local procedures—some Colorado district courts allow remote appearance by phone or video, others prefer in-person attendance.