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Child Settlements Require Protection

When a child is injured and receives a legal settlement, the process does not end with a signed agreement. Courts in both California and Arizona require safeguards to ensure that the money is preserved for the child’s benefit. This is part of a legal process called a Minor’s Compromise. At Fielding Law, we guide families through this process with compassion and clarity. These child settlement funds must be handled with care to ensure the child’s long-term well-being.

Where the Money Goes

After court approval, the settlement funds are usually directed into a safe financial structure that protects the child’s best interests. These child settlement funds are placed into specific accounts designed to ensure that the money is available when the child is old enough to use it wisely.

Blocked Accounts

This is one of the most common solutions. A blocked account is a restricted bank account that prevents anyone from accessing the funds until the child turns 18. The court approves the bank and account, and no withdrawals can be made without an additional court order.

Structured Settlements

In some cases, especially when the settlement is substantial, the child settlement funds may be placed into a structured settlement. This means the child will receive money in scheduled payments after reaching adulthood. This approach helps ensure long-term financial stability.

Special Needs Trusts

If the child has ongoing medical or developmental needs, the court may approve a special needs trust. This allows more flexible use of the child settlement funds while still preserving eligibility for benefits like Medi-Cal or SSI.

Can a Parent Use the Money

Parents and guardians may not use the child’s funds for general family expenses. However, the court may allow limited reimbursement for costs directly related to the child’s care, such as medical bills or necessary equipment. These requests must be submitted to the court and clearly documented.

Why the Court Takes This Seriously

These protections exist to ensure the child has access to the resources they need later in life. Injuries can impact a child’s future in unexpected ways, and the legal system is designed to protect their financial security as they grow. Child settlement funds are intended to serve the child’s needs, and courts aim to balance safety with fairness. Fielding Law is here to make sure no detail is overlooked.

Why Hire Fielding Law

Fielding Law understands the unique challenges families face after a child injury. We are experienced in California and Arizona law and know how to guide you through the Minor’s Compromise process with care, professionalism, and kindness. Every step is handled with the child’s best interest in mind.

If your child has been injured, do not wait to ask questions. Call 833.88.SHARK today to schedule your free consultation or contact us to learn how we can help.

Note: Information provided is for educational purposes and does not constitute legal advice. Always consult with a qualified attorney for legal concerns.

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