Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor 2025

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Settlements Under $5,000 This is because California law permits Judges to order the funds to be paid directly to custodial parents if the total settlement is $5,000.00 or less. If the total settlement for the minor exceeds $5,000.00, then a Minors Compromise and a subsequent hearing must commence.
A personal injury trust is a legally-binding document that allows you to hold and manage your compensation in a separate bank account, protecting it from assessment for means-tested benefits and ensuring it can be spent as originally intended.
A compromise of a minors claim is when an adult executes a settlement agreement on behalf of a minor child. This is necessary because children under the age of 18 are not legally able to enter contracts in California.
This means the funds can only be accessible by the minor upon reaching 18. However, as a parent, you might have situations where it seems necessary to access the settlement funds. This requires a court order or authorization from the UTMA custodian.
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