How Settlements for Minors Are Handled After a Car Accident in Lexington, SC
South Carolina law treats injury claims involving minors differently than those involving adults. If your child was hurt in a car accident, knowing how these special rules work can help you focus on your child’s recovery while protecting their legal rights.
In This Article:
- How Do South Carolina’s Laws Protect Injured Minors?
- Who Can File a Personal Injury Claim for a Minor?
- Court Approval of Settlements
- How Settlement Funds Are Managed
- Statute of Limitations
1. How Do South Carolina’s Laws Protect Injured Minors?
In South Carolina, a minor is anyone under the age of 18.[i] Because minors can’t file lawsuits or enter into binding settlement agreements on their own, the law requires that an adult (usually a parent or guardian) act on their behalf.
There are also special rules designed to protect a child’s interests. These include rules for keeping a minor’s identity confidential in court filings, requiring court approval of certain settlements, managing any settlement funds, and determining when the statute of limitations begins to run.
Together, these protections ensure that a child’s claim is handled fairly and that any compensation they receive is preserved for their benefit. Before moving forward, it’s important to understand who can legally file a claim when a child is injured and in what capacity.
2. Who Can File a Personal Injury Claim for a Minor?
A minor cannot file a personal injury claim on their own. An adult, typically a parent or legal guardian, must file the claim on their behalf.[ii] If there is no parent or legal guardian, an adult relative or family friend can serve as the child’s “next friend” and bring the claim instead.[iii]
When a child is injured in South Carolina, there are usually two separate legal claims involved, which are often handled together:[iv]
- The child’s claim, brought by the parent or guardian in a representative capacity, seeks compensation for the child’s pain and suffering, future medical needs, permanent impairment, and other damages the child has suffered.
- The parent’s claim, brought in their individual capacity, covers out-of-pocket expenses the parent personally incurred as a result of the child’s injury, such as medical bills.
Understanding the difference between these two claims is especially important when negotiating a settlement after a car accident involving a minor. Whether the settlement funds belong to the parent or to the child determines if court approval will be required and how that money must be managed once the case is resolved.
3. Court Approval of Settlements
South Carolina law requires that certain settlements involving minors be approved by a court before they are finalized. This process ensures that the settlement is fair, that the funds are properly handled, and that the child’s interests come first.
Whether court approval is required depends on the net amount being paid to the minor. The “net amount” is the total funds the child will actually receive after payment of all litigation expenses (such as attorney’s fees and costs) and any reimbursements for other obligations (including medical bills, health insurance liens, and parental reimbursements).[v]
- If the net amount $2,500 or less: Court approval is not required.[vi]
- If the net amount is between $2,500.01 and $25,000: Court approval is required unless the minor already has a conservator.[vii]
- If the net amount is above $25,000: Court approval is required even if the minor already has a conservator.[viii]
- A “conservator” is a person appointed by the court to manage the minor’s money.[ix]
When a child who lives in Lexington, South Carolina, is injured in a car accident, the court approval process typically takes place in either the Lexington County Court of Common Pleas or the Lexington County Probate Court (for net settlements of $25,000 or less).[x]
To request court approval, the child’s guardian or guardian ad litem (a person appointed by the court to protect the child’s interests) must file a petition outlining the details of the accident, the injuries, and the proposed settlement.[xi]
The court will then hold a hearing. During the hearing, a judge reviews the petition and hears testimony from the parent or guardian to confirm that the settlement is lawful, fair, and in the child’s best interests.[xii]
If the judge approves the settlement, an order is issued specifying how the settlement funds must be handled and safeguarded for the child’s benefit. Once the court issues the order approving the settlement, the focus shifts to where those settlement funds are held, how they are managed, and when they can be accessed.
4. How Settlement Funds Are Managed
When a minor receives money from a personal injury settlement, the funds are not paid directly to them. Instead, South Carolina law dictates how the money must be handled based on the size of the settlement to ensure it’s preserved for the child’s benefit.
- If the net settlement to the minor is $15,000 or less:
The funds must be paid to the minor’s conservator, if one exists. If there is no conservator, the money may instead be paid to:[xiii]
- A person who has custody of and lives with the minor;
- The minor’s legal guardian; or
- A savings account in only the minor’s name (or for the minor under the Uniform Transfers to Minors Act)
- If the net settlement to the minor is more than $15,000:
The funds must be paid to a conservator. If the minor does not already have one, the probate court will appoint a conservator to manage the money. However, if the settlement is set up to provide periodic payments over time (a “structured settlement”), a conservator may not be required.[xiv]
For example, if a minor living in Lexington, South Carolina, is injured in a car accident and the court approves an insurance settlement of $100,000, the funds could be handled in one of two ways:
1. Parent or Guardian as Conservator
The parent can apply to become the minor’s conservator through the Lexington County Probate Court.[xv] If appointed, the settlement funds are paid to the parent, and the court oversees how the money is managed and used. As conservator, the parent must file an annual report with the court detailing how the funds are being used.[xvi] The court may also require the parent to post a bond (an amount held by the court to ensure the settlement funds are not mismanaged or misused).[xvii]
2. Structured Settlement
Alternatively, the settlement can be arranged as a structured settlement that pays the child in installments over time. For example, the payments might begin when the child turns 18 and continue annually until age 25.
A structured settlement can be a good option because it is typically funded through an insurance company, and the payment terms are fully customizable. The insurance company guarantees the future payments, which can be scheduled to meet the child’s specific needs, such as college or other major expenses, as they grow older. As long as the structured settlement payments do not exceed $15,000 per year before the child turns 18, the parent usually does not need to be appointed as conservator.[xviii]
Whether the settlement funds are paid to a parent, managed by a conservator, or set up through a structured settlement, the goal is the same: to protect the child’s best interests and ensure the money is used for their benefit.
Before pursuing a settlement, you need to know how long you have to file a personal injury claim for a minor and how South Carolina’s statute of limitations applies when the injured person is under 18.
5. Statute of Limitations
In South Carolina, the deadline for filing a personal injury lawsuit is known as the statute of limitations. If you miss the deadline, you lose the right to file the claim and recover compensation.
Generally, there is a three-year statute of limitations for car accident cases.[xix] However, if the accident involved the State of South Carolina or a government entity (such as a public school bus, police vehicle, or county-owned car), the deadline is only two years.[xx]
As discussed above, when a child is injured in a car accident, there are typically two separate claims: the parent’s claim and the child’s claim.
- Parent’s Claim: The parent’s claim, which covers out-of-pocket expenses like medical bills, follows the normal statute of limitations rules (three years in most cases, or two years if a government vehicle was involved).
- Child’s Claim: The statute of limitations for the child’s claim is tolled (paused) until the child turns 18. If the normal statute of limitations would have expired earlier, the deadline is extended until the child’s 19th birthday. In other words, the clock doesn’t start running until the child turns 18, and they typically have one year from that date to file their claim.[xxi] (If the minor is close to turning 18 at the time of the accident, the tolling period may have little or no effect, and the normal filing deadlines will apply.)
Example:
If a 10-year-old boy in Lexington, South Carolina, is injured in a car accident that does not involve a government vehicle, his mother would have three years from the date of the accident to file her own claim for the medical bills she paid.
The child’s deadline to file a claim, however, would be paused until he turns 18 and must be filed before his 19th birthday. (Even though the statute of limitations is paused, it’s best to pursue the claim well before the deadline to ensure that witnesses and evidence are still available.)
Conclusion
Every child’s injury case is different, and the right approach depends on many considerations, including the severity of the injury, the insurance coverage involved, and your family’s needs. What’s most important is making sure your child is taken care of physically, emotionally, and financially.
If your son or daughter was injured in a car accident in Lexington or anywhere in South Carolina, we’re here to help. You can schedule a free personal injury consultation by calling our office at (803) 359-9000 or using the link below.
Last Updated: 11/11/2025
About the Author
Jason Yonge is a litigation attorney in Lexington, South Carolina. He represents clients across the state in serious personal injury, car accident, and wrongful death cases. For honest, straightforward advice about your situation, contact Jason to see how he can help.
[i] S.C. Code Ann. § 15-1-320 (Defining “minors” as “persons under the age of eighteen years except in laws relating to the sale of alcoholic beverages.”).
[ii] Rule 17(c), SCRCP (“Whenever a minor . . . has a representative, such as a general guardian, committee, conservator, or other like fiduciary, the representative may sue or defend on behalf of the minor.).
[iii] Rule 17(c), SCRCP (“If a minor . . . does not have a duly appointed representative he may sue by his next friend or by guardian ad litem.”); Black’s Law Dictionary (12th ed. 2024) (Defining “next friend” as “someone who appears in a lawsuit to act for the benefit of an incompetent or minor plaintiff, but who is not a party to the lawsuit and is not appointed as a guardian.”).
[iv] See Patton v. Miller, 420 S.C. 471, 804 S.E.2d 252 (2017).
[v] S.C. Supreme Court Order 2014-05-23-03; see also S.C. Code Ann. § 62-5-433(A)(2) (“‘Claim’ means the net or actual amount accruing to or paid by the minor or incapacitated individual as a result of the settlement.”).
[vi] S.C. Supreme Court Order 2014-05-23-03; S.C. Code Ann. § 62-5-433(D).
[vii] S.C. Supreme Court Order 2014-05-23-03; S.C. Code Ann. § 62-5-433(C).
[viii] S.C. Supreme Court Order 2014-05-23-03; S.C. Code Ann. § 62-5-433(B).
[ix] S.C. Code Ann. § 62-5-101(3).
[x] S.C. Supreme Court Order 2014-05-23-03 (Circuit Court has exclusive jurisdiction for claims over $25,000 and concurrent jurisdiction with the probate court for claims $25,000 or less.); S.C. Code Ann. § 62-5-433.
[xi] S.C. Supreme Court Order 2014-05-23-03; S.C. Code Ann. § 62-5-433.
[xii] S.C. Code Ann. § 62-5-433(B)(2).
[xiii] S.C. Code Ann. § 62-5-103(A).
[xiv] S.C. Supreme Court Order 2014-05-23-03; S.C. Code Ann. § 62-5-103.
[xv] S.C. Code Ann. § 62-5-402(B).
[xvi] S.C. Code Ann. § 62-5-416.
[xvii] S.C. Code Ann. § 62-5-409;
[xviii] S.C. Supreme Court Order 2014-05-23-03 (“[W]hen a structured settlement is over $10,000, but the minor will not receive more than $10,000 per year during his or her minority, it is generally not appropriate to appoint a conservator. Absent extraordinary circumstances, it is not appropriate to appoint a conservator when the minor will not receive any funds under a structured settlement until after the minor reaches adulthood.”); S.C. Code Ann. § 62-5-103 (The statutory threshold for requiring a conservator was increased from $10,000 to $15,000).
[xix] S.C. Code Ann. § 15-3-530.
[xx] S.C. Code Ann. § 15-78-110. The two-year statute of limitations can be extended to three years if the claimant files a verified claim within one year of the accident.
[xxi] S.C. Code Ann. § 15-3-40.
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