Can I Gain Access to My Child’s Settlement Money?

Did your child receive a settlement for personal injury, wrongful death or another legal claim? If so, the funds are usually intended to support the child in the future. As a parent or guardian, though, you might wonder if or when you can access this money.

Usually, as a parent, you can access your child’s money only under special considerations, and it must be approved by a judge. At Burger Law, our St. Louis personal injury lawyers can help you understand the injury process, including what happens to any settlement your child receives.

Minor Settlements in Missouri

In Missouri, settlements involving minors fall under special regulations to ensure that the money is used appropriately for your child’s benefit. Under the Missouri Statutory Thresholds for Settlements Involving Minors Act, claims under $35,000.00 can be settled by you, as the minor’s custodian or parent, without seeking court approval. This is a newer law that allows you to settle small settlements involving minors without need for costly and time-consuming court intervention.

However, you should always consult our lawyers before settling a personal injury claim for your child. If the proceeds are paid in cash or directly deposited into your lawyer’s account, they will then deposit the funds into a uniform transfer to minors account (UTMA) for the minor’s sole benefit.

In cases where minors are unrepresented by a lawyer, the compensation goes directly into a UTMA. You can establish a UTMA account at a financial institution of your choice for your child. However, if the payment is made through the purchase of an annuity, the funds should transfer directly to the annuity provider, with the minor being the exclusive beneficiary.

For minors under state care, the settlement funds get deposited into a trust or subaccount by the children’s division of the Social Services Department. This interest-earning account will hold the settlement money for the interests of the minor.

Accessing the Settlement Money

The UTMA account is like a custodial account. This means the funds can only be accessible by the minor upon reaching 18. However, as a parent, you might have situations where it seems necessary to access the settlement funds. This requires a court order or authorization from the UTMA custodian. You must provide detailed reasons for the withdrawal, such as:

• Emergency needs
• Educational needs
• Costs associated with basic needs
• Educational needs
• Medical expenses

The best way is to work with our personal injury attorney from Burger Law, who will advise on the best course of action.

Protect Your Child’s Future with Our St. Louis Personal Injury Attorney

When your child suffers an injury, obtaining a fair settlement is important for covering their injury-related expenses and supporting their future. You should always make sure you appropriately handle the funds once the case resolves.

At Burger Law, we are committed to ensuring that you don’t settle for less and help with proper management of your child’s funds. Contact us online or call (314) 500-HURT today for a free case evaluation.