My 15 yr old daughter was injured in a car accident in KY. is there any way she can get money from her settlement now?
Question Details: Her settlement from the drivers insurance is going to be $12500. from my underinsured she will get $75000. Are we the parents entitled to any money from that for our lost wages and for out of pocket expense. And can it be set up for her to get her money in a lump sum at age of 18 or does it only come to her in monthly payments?
It is difficult to provide much specific advice based on the limited facts available in your question. However, speaking generally, it is always prudent to consider resolving a minor's claims through a structured settlement. This would allow the proceeds to grow tax-free and be distributed when the child is an adult. You must be careful because, if any of the settlement proceeds are paid to her before the structured settlement has been finalized, the tax benefits will not be allowed by the IRS.
I feel certain that the insurance companies will not be willing to complete a settlement unless and until someone (usually a parent) is appointed as a guardian by the district court. The court should also be asked to approve the settlement before any payments are made and the guardian will need to post a bond to assure that the proceeds are not dissipated. This is another good reason to consider a structured settlement.
Regarding the parents' ability to retrieve out-of-pocket expenses, this may be possible under the PIP coverages and as part of the guardianship proceeding. Without knowing more information I cannot provide a better response to this particular issue. I'm a little confused about the amounts identified in the settlement. It is odd that the child would receive only $12,500 from the liability carrier but receive $75,000 from the underinsured carrier, since underinsured benefits are not usually payable until the full limits of basic liability coverage have been exhausted. The minimum required limit of liability coverage in Kentucky is $25,000, so I must assume that there were several injured people in the collision who must split the available limits of the other driver's policy. Otherwise, it doesn't seem likely that a substantial underinsured payment would be offerred.
Finally, while it may seem self-serving for an attorney to say, I strongly urge you to use the services of an attorney, especially when considering the settlement of a minor's claims. I have seen many instances where the expense of an attorney is greatly offset by the additional recovery realized with the assistance of a lawyer. The scenario you describe has many potential pitfalls and complications that warrant participation of an experienced legal counsel.
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