Short answer: In Kentucky, a personal injury settlement on behalf of a minor normally requires court involvement to protect the child’s interests. The typical process includes documenting the settlement, filing a petition asking a court to approve the compromise, appointing a guardian ad litem or court-appointed representative if the court requires one, holding a hearing, and obtaining an order that authorizes how settlement funds will be handled and distributed.

Disclaimer: This is general information and not legal advice. Laws change and each case has unique facts. Consult a licensed Kentucky attorney for advice about your situation.

Detailed answer — step-by-step: how the court approval process typically works in Kentucky

1. Negotiate and document the settlement.

   Before court involvement, the claimant (usually a parent, guardian, or attorney) and the defendant or insurer agree to settlement terms in writing. The agreement should state the amount, which claims are released, and any proposed allocation for medical expenses, attorney fees, and future care.

2. Decide the correct court and prepare a petition or motion to approve the compromise.

   In Kentucky, petitions to approve settlements for minors are typically filed in the circuit court where the minor resides or where the underlying claim is pending. The petition (sometimes called a petition to compromise a minor’s claim) asks the court to review and approve the settlement and to issue any orders needed to protect the minor’s funds.

3. Provide required documents and proposed orders.

   The petition package usually includes: the settlement agreement; a statement of the case and facts; an accounting or breakdown showing medical liens, attorney fees, costs, and net recovery; and a proposed court order describing how funds should be handled (for example, placement into a blocked account, a guardianship/conservatorship, or a structured settlement). Attach medical records and any releases as needed.

4. Appointment of a guardian ad litem or independent representative if required.

   To ensure the child’s interests are protected, the court often appoints a guardian ad litem or an independent attorney to represent the minor’s interests in the settlement approval process. The guardian ad litem conducts an independent review and reports to the court whether the proposed settlement appears fair and reasonable. Kentucky law and court rules give judges discretion to require this protective step.

5. Notice to interested parties.

   Court rules generally require notice to the minor’s parents, the opposing party (if not already involved), any medical providers asserting liens, and sometimes the minor (depending on age and local practice). Proper notice gives parties an opportunity to object before the court approves the settlement.

6. Hearing on the petition to approve the minor’s compromise.

   The court will schedule a hearing. At the hearing the judge will review the settlement terms, the guardian ad litem’s report (if one was prepared), attorney fee requests, any liens, and whether the settlement adequately compensates the minor. The judge may ask questions to the parties or the guardian ad litem before deciding.

7. Court approval, denial, or modification.

   If the court finds the settlement fair and in the child’s best interest, it will enter an order approving the compromise. The court may also reduce attorney fees, require liens be paid from the recovery, or direct part of the money into a restricted account or structured settlement. If the court finds the proposal inadequate, it can deny approval or send the parties back to renegotiate.

8. Handling and protection of funds after approval.

   After approval, the court’s order controls how settlement proceeds are handled. Common options in Kentucky include:

   • Deposit of funds into a blocked or restricted account (often through the county clerk or a financial institution approved by the court).
   • Creation of a guardianship or conservatorship for the child’s property under the probate division, with a court-appointed conservator managing funds until the child reaches majority or as otherwise ordered.
   • Use of a structured settlement annuity to provide periodic payments for future medical care or living expenses.
9. Distribution and follow-up.

   Once the funds are properly secured per the court’s order, disbursements (for medical bills, approved attorney fees, and the minor’s net recovery) occur as directed. Periodic accounting to the court may be required if a conservator or guardian is managing the funds. When the minor reaches the age of majority, the court or conservator typically distributes the remaining funds to the individual, subject to any remaining restrictions ordered by the court.

Where Kentucky law fits in: Kentucky circuit courts supervise the process to protect minors’ property and to approve settlements from tort claims. The Kentucky Revised Statutes and local court rules govern guardianship, conservatorship, and the role of guardian ad litem in juvenile and probate matters. For general statutory reference and to find the specific statutory provisions and local forms, consult the Kentucky Revised Statutes and the Kentucky Court of Justice website:

• Kentucky Revised Statutes and chapters related to juveniles, guardians, and estate/probate matters: https://apps.legislature.ky.gov/
• Kentucky Court of Justice — information on guardianship and probate procedures: https://courts.ky.gov

If you need the exact statutory text that applies to your situation, a Kentucky attorney or the county circuit clerk can point to the controlling statute and local rules for filings and fees.

Helpful Hints — what to know and bring to the initial meeting or hearing

• Hire an attorney experienced with minor settlements in Kentucky. They can prepare the petition, identify all parties and liens, and propose protective ways to hold funds.
• Gather documentation: settlement agreement, medical records and bills, lien letters from medical providers and insurers, proof of parentage or guardianship, and any prior court orders affecting the child.
• Expect the court to review attorney fees closely. Have fee agreements and time records ready to justify any requested fee award.
• Be prepared to propose a safe mechanism for holding funds (blocked account, structured settlement, or conservatorship) and explain why it protects the child’s future needs.
• If there are medical liens or Medicaid/CHIP claims, notify those agencies early; the court will want to know how liens will be satisfied.
• Allow time: court approval processes can take weeks to months depending on scheduling, required reports from a guardian ad litem, and resolution of liens or creditor claims.
• Do not cash settlement checks or spend funds until the court has issued an approval order describing how funds should be handled.
• If the other parent or a third party disputes the settlement, notify your attorney immediately — the court will resolve disputes in the minor’s best interest.