What Happens If a Minor Child Gets a Personal Injury Settlement in Florida?

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In Florida, when a child is going to get money, the court wants to make sure that the money is for the child and not to be used by the parents or someone else for their benefit. The law seeks to protect settlements for kids.

Specific laws govern how settlements are handled when a minor is involved, so it’s essential to understand these differences. They impact the settlement approval process and how the funds are used or managed.

When a minor receives a personal injury settlement in Florida, the process is different from a standard personal injury claim. A guardian ad litem is appointed to manage the funds. These funds are typically placed in a structured settlement, requiring court approval for major decisions. Tax implications may apply.

This article will walk through the key aspects of what happens when a minor child receives a personal injury settlement in Florida.

How is a Child Injury Case Different Than a Regular Case?

In Florida, a child injury case is treated differently than a regular personal injury case due to the legal protections in place for minors. While adults can make decisions regarding their own settlements, minors are considered legally incapable of making such decisions. Instead, their guardians or parents must act on their behalf. However, even the guardians’ decisions are subject to court approval.

Court Involvement: When a settlement involves a minor child, the court must approve it, especially if the settlement exceeds $15,000. This is done to ensure that the settlement is in the best interest of the child and that their rights are protected.

Structured Settlements: For minors, settlements are often structured. This means that instead of receiving a lump sum payment, the funds are distributed over time to provide financial security for the child into adulthood. The terms of these payments are carefully considered by the court to ensure they will benefit the child long-term.

Role of the Guardian ad Litem (GAL) in Florida Personal Injury

If a personal injury settlement is obtained for a minor child in Florida (someone under the age of 18) under most circumstances the law in Florida requires a guardian ad litem be appointed by the court to represent the best interests of the child.

Even though the child has a lawyer, in Florida the law requires a guardian ad litem that is appointed by the court to oversee the settlement and ensure that the settlement is in the best interest of the child.

The guardian ad litem is responsible for reviewing the case file including medical records, evidence, records, a proposed settlement, closing statement, and release to ensure the settlement is in the best interest of the minor.

The guardian ad litems are appointed to ensure the settlement is fair and reasonable and the funds are protected from others. In other words, in many cases there may be a settlement where the child is going to receive a lump sum amount. For instance, a child’s portion of the settlement after attorney’s fees and costs, may end up being $100,000.

The law does not allow that money to be given directly to the children. The law generally does not allow that lump sum to be given to the parents. In most cases, we trust that parents are going to do the right thing with those funds, but the law demands extra protection for minors.

What Information Does the Court Request to Approve the Settlement of a Child Injury Case?

The court plays a critical role in reviewing and approving any personal injury settlement involving a minor child in Florida. This is meant to safeguard the child’s financial interests and ensure that the settlement is fair and adequate for the injury sustained.

Medical Evidence and Settlement Terms: To approve the settlement, the court requires a detailed account of the child’s injuries, including medical reports and prognosis. The court will also evaluate the terms of the settlement to determine if it adequately covers future medical expenses, pain and suffering, and any other damages the child may incur due to the injury.

Guardian Ad Litem Appointment: In some cases, the court may appoint a Guardian Ad Litem, an independent party, to review the settlement on behalf of the child. The Guardian Ad Litem ensures that the settlement serves the child’s best interests, without any undue influence from the parents or guardians.

Court Approval for Large Settlements: For settlements over $50,000, the court’s involvement is even more rigorous, and additional approval may be needed to ensure the funds are protected, often through the establishment of a trust or structured payment plan.

Options for Paying Personal Injury Settlement for a Minor

There are several different methods and financial vehicles that are used to protect the child’s funds.

Structured Settlements

One method is a structured settlement. In a structured settlement the funds are placed into a form of an annuity, which earns interest over time during the child’s minority. For instance, you wouldn’t give a lump sum of $100,000 to a 12 year old.

Instead, that money could be put into a structured settlement. The money is essentially invested at the age of 12, and kept with a life insurance or other financial company or trust company.

When the child turns 18, they may get a disbursement of $10,000 (or some other amount), and then when they turn 20, another $10,000 (or some other amount), and then when 25 or 27 or some other age, then they get the rest of the money plus interest.

Special Needs Trusts and Pooled Trusts

Another method of protecting a minor child’s settlement is to have the funds placed into a Trust. In that case, the money would go into a Trust with certain restrictions associated with the ability of the parents to use the funds. Typically, the parents or guardians of the minor would have to apply for disbursements of that money. While the funds are in trust, they will also usually be earning some amount of interest.

Guardianships

Another method used by courts to protect minor’s settlement funds would be to open up a legal guardianship with the Courts. In those instances, funds are kept in a restricted bank account, and the parents or other guardian must apply for and obtain an order from the court to allow those funds to be disbursed to be used for the minor’s benefit for food, clothes, school supplies and other items for the child’s benefit.

Can a Parent Spend the Money Received from a Child Injury Settlement?

When a minor child receives a personal injury settlement in Florida, the parents or guardians cannot simply use the funds as they wish. Florida law imposes strict limitations on how the settlement money is managed and spent.

Restricted Use of Funds: If the settlement exceeds a certain threshold, the funds are typically placed in a restricted account or trust, which ensures that the money is preserved for the child’s future needs. Parents may need court approval to access or spend the money before the child turns 18, and even then, the funds must be used for the child’s benefit, such as for medical expenses, education, or other needs directly related to the injury.

Management of Settlement Funds: If a large settlement is awarded, the court may appoint a financial guardian to oversee the funds and ensure they are properly managed. This helps prevent misuse of the money and ensures that the child will have financial security in the future.

FAQs About Florida Personal Injury Settlements for Minors

How Are Minor Settlements Handled in Florida?

In Florida, minor settlements must go through court approval to ensure the child’s financial interests are protected. If the settlement exceeds $15,000, the court requires a formal review of the agreement. For larger settlements, exceeding $50,000, the court often appoints a Guardian Ad Litem to evaluate the fairness of the settlement. The court may also set up a structured payment plan or a trust to manage the funds until the child reaches adulthood.

Can a Minor File a Lawsuit in Florida?

A minor cannot file a lawsuit directly in Florida. Instead, a parent or legal guardian must file the lawsuit on the child’s behalf. The court ensures that the child’s interests are represented and protected throughout the legal process. Any settlements or awards from the lawsuit are also subject to court approval to safeguard the minor’s financial future.

Do Parents Get Any Money from a Child’s Personal Injury Settlement in Florida?

In most cases, parents do not receive direct access to the settlement funds. Florida law ensures the money is strictly used for the child’s benefit. Settlement funds are typically placed in a restricted account or trust. Parents may need court approval to use the funds, and only for expenses related to the child’s care, such as medical bills or education.

How Long Does It Take for a Minor’s Personal Injury Settlement to Be Approved in Florida?

The approval process for a minor’s personal injury settlement in Florida varies, but it often takes several months. The court needs time to review medical records, settlement terms, and may appoint a Guardian Ad Litem. For larger settlements, additional scrutiny is required to ensure the child’s financial future is protected, which can extend the timeline.

What Is a Structured Settlement for a Minor in Florida?

A structured settlement is a payment plan designed to protect a minor’s personal injury settlement in Florida. Instead of a lump sum, the funds are distributed over time, ensuring long-term financial security. Payments may begin when the child turns 18 and continue at intervals, providing funds for education, living expenses, or other needs.

Does a Minor Need a Lawyer for a Personal Injury Settlement in Florida?

Yes, a minor must have legal representation for a personal injury settlement in Florida. A personal injury lawyer ensures the child’s rights are protected throughout the legal process. Additionally, the court may appoint a Guardian Ad Litem to review the settlement and make sure it is fair and in the minor’s best interest.

Contact a Florida Personal Injury Attorney Today

As mentioned above number several different financial vehicles are used in Florida to protect the minor’s assets. Cases where minors receive settlements include car accidents, bicycle accidents, pedestrian accidents, dog bite cases, and other accidents where a child is injured. Cases involving minors require special attention. Please contact Rosen Injury Law, P.A. if you or a minor child suffered injuries. Call (954) 787-1500 today.