If a child is involved in a car accident does the money they receive go into a trust until they are 18?

UPDATED: Apr 4, 2009

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If a child is involved in a car accident does the money they receive go into a trust until they are 18?

Asked on April 4, 2009 under Accident Law, Oregon


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Courts usually order that the net proceeds paid to a minor from an accident settlement be held for the benefit of the minor until the minor is an adult at age 18.

That said, courts also are generally very practical. They permit (and usually order) that the cost of the child's medical and hospital care (not paid for by other insurance) be paid from the settlement. They require lawyer fees to be paid from the settlement. They may permit certain reimbursement to caregivers or extraordinary expenses paid for by the parents.

If the child is likely to sustain any extra-ordinary items of cost, beyond what a family normally does or can provide, or will require them before she is 18, the court often authorizes such expenses from the settlement proceeds or the trust or other account set up to hold them, sometimes in advance and sometimes afterwards.

However, if the child receives a large settlement and the past bills and future bills are not an issue, the courts want to protect the proceeds for the child until she is 18, and keep others who want to get their hands on the money (sometimes the teenager who wants a new sports car or the parents who may want to ease their financial responsibility) from touching it.  

If there is a special use for the money that the court accepts as primarily for the child's benefit -- such tuition to a private school the parents would not have been able to afford -- the judge may authorize that expenditure.

If you're thinking about something specific, ideally it is really something you should discuss with your attorney before the settlement terms are finalized and the account or trust is set up.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption