Any personal injury case in California may seem confusing to both parents and their children. When the child is the subject of the case and wins, what happens to the money? How is it handled? There are specific laws that govern this situation. Read on to learn more about them but remember that your best bet is to contact Law Offices of Fernando D. Vargas at 909-982-0707 for a free legal consultation.
What California law has to say about this situation
According to California law, if a child is under the age of 18 (otherwise known as a minor) then they must have any personal injury settlements approved by the appropriate court. In most cases, the court appoints what’s known as a “guardian ad litem.” This is essentially a person whose job it is to investigate the situation and come up with what’s in the best interest of the child. They then proceed with any action on behalf of the minor, except in the case that the minor has been emancipated.
Once the guardian ad litem is in place, a compromise hearing is scheduled with the court. This hearing is designed to look at the settlement that’s been tendered by the party found to be at fault.
Why does the court get involved at all?
The reason this system is in place is to ensure that the child gets a fair and equitable settlement. Once the court has approved the settlement, the money is generally deposited in what’s known as a blocked account. This will be done at the bank or financial institution that the guardian selects, or it can be used to buy an annuity. Either way, the funds are for the use of the minor once they’ve gotten to the age of 18.
Blocked funds become available as soon as the minor turns 18. However, an annuity is payable over time. For example, if may be paid into a college education account that’s payable yearly. It may be set up to give lump sum payments over a number of years after the minor turns 18. In most cases, payments can be available on the dates and ages a guardian decides though the court must approve them. Common examples including releasing money at 18, 21, and 25.
There are exceptions that don’t involve a court appointed guardian
Not all personal injury cases involve working with a court appointed guardian. In some cases, typically those that involve settlements of less than $5,000, the at-fault party’s insurance carrier may waive the requirement to have a minor’s compromise hearing. In this case, the parent or legal guardian of the minor can simply deposit the money directly into an account as long as it’s for the benefit of the child.
In other cases, it may be possible to petition the court to release part or the entirety of a minor’s settlement early. However, this requires proof for the courts that the funds need to be released for the benefit of the child and due to extraordinary circumstances. No matter what the case, if your minor child has been injured you should contact a personal injury attorney right away to find out what your rights area and what theirs are. Contact Law Offices of Fernando D. Vargas at 909-982-0707 for a free legal consultation.