In Md to open a trust account for a minor child to deposit a check for a title 13 trust account. What paperwork is requi

Question

My fiance who passed had a malpractice lawsuit that was settled after he passed away. The check was issued to our minor child under a trust with me as the trustee. I need to find out if this account can be opened up as a regular guardian account without paying over a $1000 to have a lawyer draw up paperwork

Mark Oakley · Answer

Yes, if you open an account with the check in hand, payable to you as trustee, then you can simply deposit it into the account and nothing else need be done--no other paperwork required.  Once deposited, you may not withdraw any funds before the minor turns 18 unless you first obtain a court order allowing withdrawal for good cause to cover necessary approved expenditures for the child.  Upon turning 18, the funds may only be paid over to the child or as the child directs.  There are limited types of accounts that may hold funds for a minor--all must generally be insured by the federal government, but may be federally insured money market funds, CDs, bonds, simple savings accounts, etc.  A trustee appointed to receive tort funds is not required to file an accounting or otherwise report to the court or anyone else.  The financial institution where you deposit the funds is bound by statute to follow the law on withdrawals, so unless you have a court order or the your child turns 18, they will not allow you to withdraw the funds.

Q: In Md to open a trust account for a minor child to deposit a check for a title 13 trust account. What paperwork is requi