The requirements for settling a child injury lawsuit depend on the amount of the proposed settlement. Courts don’t require approval for a settlement of less than $15,000. In that case, the court generally just distributes the funds directly to the parents or guardians. While court approval is not necessary to have a valid settlement agreement, insurance companies often require court approval before making payments for a settlement on behalf of a child. If the gross amount of the settlement is more than $15,000, then the parties must obtain court approval. This process involves filing a Petition for Approval of Settlement. When the court approves the settlement, the money goes into an annuity or restricted bank account. Funds are withdrawn for reasonable needs at the court’s discretion. Typically, the court deems using funds for shelter, medical care, or education as reasonable and necessary. The parent or guardian must act in the best interests of the child.