QUESTION
Will my 4 children's auto accident settlement be placed into a trust or be given directly to me for their care?
Asked on Jul 03rd, 2013 on Personal Injury - Nevada
More details to this question:
Auto accident at fault of 3rd party injured myself and 4 children.
15 ANSWERS
Ronald A. Steinberg
Under Michigan law, you cannot touch the kids' money. If you do, you could go to jail. If your lawyer is smart (and if there is enough money to do so,) it should be put into a trust to keep it away from you.
Answered on Aug 12th, 2013 at 7:57 PM
Personal Injury Attorney serving Appleton, WI
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Habush Habush & Rottier S.C.
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There are several ways that minor settlement funds can be arranged. All must be approved by the court. If there are ongoing medical or care needs, money can be set aside for those purposes in a way that parents have easy access to them while still having other funds only available after the child is an adult. There are significant tax consequences that also have to be considered.
Answered on Jul 07th, 2013 at 8:02 PM
Auto Attorney serving Bloomfield Hills, MI
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Gregory M. Janks, P.C.
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Any amount over $5,000 requires a protected account in Michigan and which requires a petition/motion when money is to be spent - also court approval to settle. Any amount under $5,000 must be handled in a fiduciary manner only for the benefit of the child and also requires court approval to settle, but not to disburse.
Answered on Jul 07th, 2013 at 8:01 PM
Personal Injury Attorney serving Boise, ID
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Caldwell Law Group, PLLC
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Generally, the judge will need to approve the settlement and determine where the money goes. You do have an obligation to use the money for the child's benefit. Options can include a blocked account that gives access only to each child at 18 years old unless the judge orders otherwise or a structured settlement which pays at certain intervals after each child turns 18. If the judge does allow you to keep the money, normally he'll impost a fiduciary-type duty on you to maintain the money for the child's benefit when he approves the settlement.
Answered on Jul 05th, 2013 at 2:47 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Children money goes into clerk of court to keep you from spending it.
Answered on Jul 05th, 2013 at 9:58 AM
Civil Litigation Attorney serving Van Nuys, CA
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Law Offices of Alexander Edward Gilburg
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The funds due to any children under 18 will be placed into a blocked account until they reach 18. Sometimes, when the amounts are small, the insurance company may release the funds directly to the parents as constructive trustees for the minor.
Answered on Jul 05th, 2013 at 5:45 AM
It will be placed in trust with you probably appointed guardian ad litem; you will not be able to do anything with the money without court approval.
Answered on Jul 05th, 2013 at 4:54 AM
Motor Vehicle Accidents and Injuries Attorney serving Fayetteville, NC
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Beaver Courie Law Firm
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The usual practice is that money recovered for a minor is held in trust, often by the Clerk of Court, until the child turns 18.
Answered on Jul 04th, 2013 at 12:49 AM
Personal Injury Attorney serving Portland, OR
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Kaplan Law, LLC
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It depends on how much the settlements are for. If they are for over 25K each, then they will require a Conservatorship. If they are under 25K, then the funds must go into a court blocked account in the child's name so that the parents cannot touch the funds.
Answered on Jul 03rd, 2013 at 7:58 PM
Personal Injury Attorney serving St. Louis, MO
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The S.E. Farris Law Firm
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Depends. Settlement of Minor's cases have to be court approved, and it is up to the judge as to where the money is held or how it is used until they become adults.
Answered on Jul 03rd, 2013 at 7:57 PM
Edwin K. Niles
The rule of thumb with many insurance companies is that if the settlement is over $5,000 per child, a court approval of the settlement is required. In that event the proceeds will be ordered to be placed in a blocked account, to be released upon majority (age 18). Under $5,000, the settlement will usually be made directly with the parent.
Answered on Jul 03rd, 2013 at 7:57 PM
Thomas Edward Gates
The children's money will either be placed into a Trust or a blocked account. You can be identified as the Trustee or Guardian, respectively. You would need a court order to spend any of the money. When the child turns 18 years old, they can petition the court for their money to be released.
Answered on Jul 03rd, 2013 at 7:15 PM
James Eugene Hasser
If your children are minors, it depends on how much the settlement is. However, either way, the money can only be spent for the needs of the children.
Answered on Jul 03rd, 2013 at 7:08 PM
Personal Injury Attorney serving Murrieta, CA
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Law Offices of Kevin Cortright
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In California it is usually required to be placed into a blocked account for the child until they turn 18.
Answered on Jul 03rd, 2013 at 7:04 PM
Personal Injury Attorney serving Reno, NV
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Law Offices of Jill K. Whitbeck
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In Nevada, a blocked trust account needs to be established for each child and the money cannot be touched until the child turns 18 and it is released by the court.
Answered on Jul 03rd, 2013 at 5:52 PM