SETTLEMENTS AND JUDGMENTS
INVOLVING MINORS AND LEGALLY INCAPACITATED INDIVIDUALS
The Michigan Supreme Court requires the use of MC 95,*Request
for Approval of Bond and Notice Settlement/Judgment/Wrongful Death Settlement
(MC95) where either (1) in a wrongful death claim where a minor or legally
incapacitated individual are to receive distributions in excess of $5,000 or (2)
in all settlements and judgments when the plaintiff is a minor or legally
incapacitated individual and the value of the settlement or judgment to the
minor or legally incapacitated individual is more than $5,000. A procedure
has also been established for settlements or judgments which provide for the
creation of a trust for a minor and legally incapacitated individual.
Important Note #1: For a settlement for a minor, a
conservator must be appointed if the minor is to receive either (1) more than
$5,000 payable immediately or (2) in installments of over $5,000 in any single
year during minority. The judgment or dismissal must provide that payment
be made to the conservator on behalf of the minor.
Important Note #2: If a conservator has been appointed, any
proposed settlement or judgment must be reviewed by the probate court, even if
the amount to be paid is less than $5,000. If the settlement is less than
$5,000, and a conservator has been appointed, all of the proceeds must be paid
to the conservator.
For a detailed overview of these settlement procedures, including the creation
of a trust as part of a settlement or judgment, seeProbate Settlements &
Judgments: Amended MCR 2.420 Changes the Process for Minors and Legally
Incapacitated Individuals written by Wayne County Probate Court Chief
Judge Milton L. Mack, Jr. and reprinted with permission from the August 2003
issue of the Michigan Bar Journal. Also, for a detailed overview of
wrongful death and settlements, see *Wrongful Death
Settlements & Distributions in the Probate Court written by Attorney
Howard T. Linden and reprinted with permission from the January 2006 issue of
the Michigan Bar Journal.
*These
files are provided in Adobe Acrobat Format (*.pdf), and must be viewed using
Adobe Acrobat Reader. Adobe Acrobat Reader may be downloaded from http://www.adobe.com/products/acrobat/readstep.html.
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Rev.
8/15