Understanding Minor Settlements Law: Protecting Minors' Rights and Funds
Definition & Meaning
The term "minor settlements law" refers to the legal framework governing the approval and management of settlements awarded to minors in lawsuits, such as those related to personal injury. These laws are designed to protect minors by ensuring that any financial settlements are fair and that the funds are managed responsibly until the minor reaches adulthood. Typically, a court must review and approve the settlement to safeguard the minor's interests.
Legal Use & context
Minor settlements law is primarily used in civil law contexts, particularly in cases involving personal injury claims. When a minor is awarded a settlement, specific legal procedures must be followed to ensure the funds are handled appropriately. This often involves filing an application with the court for approval of the settlement and the establishment of a trust or restricted account to manage the funds until the minor reaches a certain age.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A minor is awarded a $100,000 settlement following a car accident. The court requires a guardian to manage the funds, which are placed in a restricted account. The guardian must seek court approval for any expenditures from this account.
Example 2: A structured settlement is established for a minor, providing annual payments for college expenses once the minor turns 18. This ensures that the funds are used for educational purposes.