Minor Settlements

Any settlement involving a minor has to be approved by the Court. It's not like the insurance company hands an injured kid a whack of cash and that's the end of the case.

There are really three goals:

1. Make sure the settlement and related terms are fair.

2. Protect the minor's share of the money from other people.

3. Protect the minor's share of the money from the minor himself.

The process involves appointment of a Settlement Guardian Ad Litem (SGAL). The SGAL investigates the adequacy of the settlement and reviews the terms of the proposed settlement agreement, the attorney's fee agreement, the accounting of costs, etc. After the investigation's complete there's a hearing where the SGAL reports to the Court about what's happening and whether they think it's fair.

If the settlement is approved the minor's net settlement proceeds are paid into what's known as a blocked account.

Sometimes if there are concerns about investing the proceeds. Or preserving need-based benefits. These concerns can be addressed by paying the minor's share into what's known as a pooled trust account or special needs trust.

In the past some courts approved the purchase of GET credits. But this seems to have fallen out of favor.

Even though there are a couple of options, the majority of the time a blocked account is used and the injured person obtains access to the money when they turn 18.