Senate committee raises cap for minor settlements to $25,000, allows guardian settlements without court approval

Senate Bill 342, presented to the Judiciary Committee by attorney Kevin Crafts, would raise the threshold for required court approval of a minor’s settlement from $5,000 to $25,000. Crafts told the committee the change is intended to reduce cost and delay for modest settlements and explained protections for minors: funds intended for the minor must be placed in interest-bearing accounts and attorneys retain obligations to the minor until the funds are disbursed after majority.

Crafts said that the bill permits a guardian or a parent to settle a case for $25,000 or less without going to court, while larger settlements would still require court approval and the attendant petition and hearing. Committee members asked whether guardianship reporting or court oversight would be lost; Crafts replied that if a formal guardianship already required annual accounting, the reporting obligation would remain and the bill could be incorporated into that framework.

After brief questioning about exclusions for reimbursement of medical expenses and how attorney fees and pass-through payments are handled, the sponsor closed and moved passage. The committee approved SB342 by voice vote.

Practical effect: settlements up to $25,000 that provide direct financial benefit to a minor could be finalized without the cost and delay of a judicial hearing, subject to attorney responsibilities and account‑holding requirements designed to protect the minor’s funds.