What happens in a case involving a minor when settlement money is put into a blocked minor account?
When a minor is injured in an accident they will get money for their pain and suffering but if they’re under 18 they will not get their money until they reach that magic age of 18. So the money will be put into a blocked minors trust account. It’s usually set up at a bank and we do all the paperwork necessary to do that.
Sometimes if the settlement is a high amount it may have to be approved by the court and that’s often when a conservator is appointed who will manage the money. The minor settlements that are under ten thousand dollars don’t need to have a conservator appointed. The insurance companies on all settlements $10,000 and under will require that the money be deposited in the blocked minors account.
There are certain limited situations where the money can be withdrawn for education or extremely dire showing of financial need for support of the minor, but most the time the money needs to stay in the account until they are 18.