Minor Settlements

Rob McKinney

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I handle a lot children's injuries in car wrecks and several other areas of personal injury law . I have a child's settlement set for this Friday in Murfreesboro , Tn . I thought this information may be helpful . What happens to the money when a child is injured ? Under Tennessee law , a Judge must approve any settlement in excess of $ 10,000.00 . In approving any tort claim settlement , the court shall have the discretion to determine whether the settlement proceeds are to be paid to the minor's legal guardian or held in trust by the court until the appropriate time . These provisions do not apply to structured settlements . The Judge could give the parents the money or order the settlement to be held by the clerk in an interest bearing account . The child would get the money at 18 or 19 . I am going to try to convince the Judge Friday to place the proceeds in a college savings account . Why ? The gains are tax free to the child . I hope it works .