If an insurance settlement is over $3000 for a minor, will it be put into a trust fund?
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If an insurance settlement is over $3000 for a minor, will it be put into a trust fund?
My minor children were in an auto accident and the settlement is slightly over $3000 so the insurance company wasn’t to put the funds into a trust account. I don’t think that it’s worth going through the hassel since after lawyer fees and therapists fees, they will only receive about $1500 each. Is there a way around this?
Asked on January 18, 2011 under Accident Law, Ohio
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Check with your lawyer. The law in each state varies on this issue. Generally speaking, though, Judge's also like to have any settlement funds issued to a minor placed in an account for the benefit of the minor until they reach 18 years old. This is to make sure that the funds are not used by anyone else. That is also why in many states a Judge must approve a settlement for an infant (called an infant's compromise order) in order to finalize the settlement. And the bank that the funds are deposited in are also named in the order. There may not really be any way around it all and if you really think about it, it really is meant in the best interests of the child.
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