QUESTION
If a parent refuses to release childs settlement and is using the settlement for personal use what can be done
Asked on Mar 03rd, 2020 on Personal Injury - New York
More details to this question:
Child received a large settlement for injuries - Court ordered an Infant Compromise Order which Mother was responsible for until child turned 18 - Child is now an adult going on 19 and Mother has not released entire settlement. It was discovered she has been using the funds for personal use. Wasn't Mother supposed to create a Trust to secure the child's money? It is stated on the order that Mother is supposed to release all the funds in its entirety when child turns 18 but she has not and is withholding a large portion of the settlement. We are not sure how she was able to do this when there was an order in place? Not sure if the lawyer failed to put in place a Trust Account and how Mother was able to get this done with the bank. Many questions we have.
1 ANSWER
Automobile Accidents Attorney serving New York, NY
Partner at
Kramer, Dunleavy & Ratchik, PLLC
4 Awards
Something definitely smells fishy. The Infant Compromise Order should have directed that the monies be deposited jointly with an officer of the bank, that no withdrawals would be permitted without a further order of the Court, and that once the child turned 18, the bank would turn over the proceeds without further order of the Court. The mother / parent should not have been in possession of any of the settlement proceeds (without permission or the Court) or have been able to withhold any portion of the proceeds.
You should call the attorney, ask to see a copy of the Infant Compromise Order and have him / her explain why the child's mother has been using the settlement proceeds for her own personal use (and presumably without permission of the Court).
Hope this helps.
Best,
Jonathan R. Ratchik, Esq.
Kramer, Dunleavy & Ratchik, PLLC
61 Broadway, Suite 2220
New York, NY 10006
(212) 226-6662
www.kdrpilawyers.com
Answered on Mar 09th, 2020 at 2:47 PM