Will my 4 children's auto accident settlement be placed into a trust or be given directly to me for their care? 19 Answers as of August 12, 2013

Auto accident at fault of 3rd party injured myself and 4 children.

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Law Offices of Ronald A. Steinberg & Associates | Ronald A. Steinberg, BA, MA, JD
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.
Answer Applies to: Michigan
Replied: 8/12/2013
Habush Habush & Rottier
Habush Habush & Rottier | Joseph Troy
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.
Answer Applies to: Wisconsin
Replied: 7/7/2013
Gregory M Janks, PC
Gregory M Janks, PC | Gregory M Janks
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.
Answer Applies to: Michigan
Replied: 7/7/2013
Caldwell Law Group, PLLC
Caldwell Law Group, PLLC | Christopher Caldwell
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.
Answer Applies to: Idaho
Replied: 7/5/2013
Paul Whitfield and Associates P.A.
Paul Whitfield and Associates P.A. | Paul L. Whitfield
Children money goes into clerk of court to keep you from spending it.
Answer Applies to: North Carolina
Replied: 7/5/2013
    The Lariscy Law Firm, PC
    The Lariscy Law Firm, PC | Joseph E. Lariscy, III
    If you are using an attorney, the will typically put the settlement check from the insurance company into their trust account and distribute your children's net proceeds from there, less expenses, attorney's fees, and any medical bill payments or liens. As the legal guardian and/or natural mother/father of the children (assuming they are under 18), you are required to act on their behalf. Speak to your attorney about the distribution of payments, this should be a question they can answer.
    Answer Applies to: Georgia
    Replied: 7/5/2013
    John Russo | John Russo
    You want to know if you can get your hands on their money? Depends on how the settlement is structured.
    Answer Applies to: Rhode Island
    Replied: 7/5/2013
    Vasilaros Legal,LLC
    Vasilaros Legal,LLC | Steven T. Vasilaros
    Yes, it will be in trust and annual accounting a will be mandated. Alternatively, you can explore having insurer purchase annuity for children. All interest will be tax free.
    Answer Applies to: Florida
    Replied: 7/5/2013
    Law Offices of George H. Shers | George H. Shers
    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.
    Answer Applies to: California
    Replied: 7/5/2013
    Law Offices of Alexander E. Gilburg
    Law Offices of Alexander E. Gilburg | Alexander E. Gilburg
    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.
    Answer Applies to: California
    Replied: 7/5/2013
    Beaver Holt Sternlicht and Courie, P.A.
    Beaver Holt Sternlicht and Courie, P.A. | Mark A. Sternlicht
    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.
    Answer Applies to: North Carolina
    Replied: 7/4/2013
    Law Offices of Kevin Cortright
    Law Offices of Kevin Cortright | Kevin Cortright
    In California it is usually required to be placed into a blocked account for the child until they turn 18.
    Answer Applies to: California
    Replied: 7/3/2013
    James E. Hasser, Jr. P.C.
    James E. Hasser, Jr. P.C. | Jim 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.
    Answer Applies to: Alabama
    Replied: 7/3/2013
    Gates' Law, PLLC | Thomas E. 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.
    Answer Applies to: Washington
    Replied: 7/3/2013
    Law Offices of Jill K. Whitbeck
    Law Offices of Jill K. Whitbeck | Jill K. Whitbeck
    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.
    Answer Applies to: Nevada
    Replied: 7/3/2013
    Matthew D Kaplan LLC
    Matthew D Kaplan LLC | Matthew D Kaplan
    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.
    Answer Applies to: Oregon
    Replied: 7/3/2013
    Law Ofices of Edwin K. Niles | 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.
    Answer Applies to: California
    Replied: 7/3/2013
    The S.E. Farris Law Firm
    The S.E. Farris Law Firm | Spencer E. Farris
    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.
    Answer Applies to: Missouri
    Replied: 7/3/2013
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