Q: Needing information on why part of a cash settlement was locked away due to the receiver being a minor.
As part of my automotive accident case, me and my son, who was in the vehicle during the accident and had his right arm injured as a result, received a cash settlement from the other driver involved. Our lawyer handled us both as separate cases, and while I received my settlement, my son had his put into a bank account that cannot be withdrawn from without a court order until he's 18. Why is this the case? Our lawyer explained it by saying the money has to directly benefit him. Does food and a roof over his head really not count as being beneficial for him? I think it is ridiculous that I can't use this money for what seems like anything other than medical bills or his own car.
A: Sory, but thats the way courts are thrughout the US. for good reason. This way he'll have something to start education with after HS
A: Minors who receive money in a tort case such as this case you cite is controlled by statute. The Insurance company for the at fault driver can only settle the case and get it closed on their books only if when a settlement is reached a "Friendly Suit" is filed on your sons behalf by a parent or legal guardian as next of kin or friend. The Court then hears the settlement terms and issues a final judgment which severs your child's right to sue in the future. Otherwise your son could wait up until he almost turns nineteen years old before the Insurance Company would be exempted from liability under the at fault insureds policy. The Judgment proceeds from the friendly suit must be deposited in a trust account for the benefit of your child. You can withdraw funds on behalf of your child with the Court's approval. Some Courts may let you withdraw monies on a regular basis for utilities or other living expenses. Some Courts state that is the parents liability. You must account for those funds with the Court as they are your sons money for damages he received. Just like he is not entitled to any money paid to you for your injuries, likewise you are not entitled to his.
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