If my 15 year daughter was run over by a car with near death injuries and the insurance company is settling for $1.1 million, does that money have to go into a Trust?

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If my 15 year daughter was run over by a car with near death injuries and the insurance company is settling for $1.1 million, does that money have to go into a Trust?

Asked on June 7, 2015 under Personal Injury, Georgia

Answers:

Robert Johnston / Law Office of Robert J. Johnston Attorney

Answered 5 years ago | Contributor

The answer from the first attorney is completely correct. I just thought I'd add the importance of looking into all of this sooner than later. There is a Statute of Limitations, which all states have. There are also certain provisions for a minor which allows them to bring a claim later since they are too young to legally do it now, leaving it up to the parents. All of these things you should be aware of. Including the fact that whatever documents you may need, from the police report, to medical reports and bills, witness statements, etc., should be sought as soon as possible. I wish you well with this and hope your daughter is doing good.

Robert J. Johnston -- 843-473-2213,

Horry County/Myrtle Beach, SC

 

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

In virtually all states, any money a minor receives in settlement of a legal claim must be held in Trust on their behalf. This is typically accomplished by placing the funds into a specially restricted bank account; no money can be removed without authorization by the court. Accordingly, if the minor's guardian (e.g. a parent, etc.) wishes to spend any of the money on the minor's behalf, the guardian must get permission from the court to do so. The reason for the guardianship and court approval is to protect the minor’s money from unnecessary expenditures or bad investments, etc. until the minor reaches the age of 18. 

To be sure of the specific procedure in your state, you can consult directly with a personal injury attorney in your area.


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