How Does a Personal Injury Settlement Work for Minors?

Feb 22,2018

If a minor is involved in a personal injury case, the court must be involved in handling the settlement. This is to protect the settlement from being spent unwisely by the child. Parents might assume they will be responsible for the settlement money, but the law requires the funds be kept in a blocked account and supervised by the court.

Settlements Under $5,000

If the settlement amount is less than $5,000, the court may allow the custodial parent to make decisions on the child’s behalf. This allows the parent to agree to the settlement and manage the settlement funds without the court’s supervision.

Court Manages Settlements for Minors

For larger settlements, the court usually puts the money into a blocked bank account, which the minor can access once 18. The court also has a few other options for managing the money, including:

Deferred annuities: Funds can be invested in a single-premium deferred annuity insurance policy.
Payment to a guardianship/conservatorship: The guardianship would have to be created by a separate proceeding in Probate Court.
Revocable trust: Funds can be kept in a trust that is court-supervised.

The child’s parent or legal guardian may request to withdraw funds from the settlement. However, they will have to petition the court for access to the funds. Moreover, the withdrawal must directly benefit the child in relation to their injury. For example, parents will likely be approved to withdraw funds for reimbursement of health insurance copayments and deductibles incurred from the child’s injury.

“California’s laws for personal injury settlements for minors help protect children’s settlements until they are old enough to manage them on their own,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, and Yucca Valley and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.