In Washington, a superior court judge ultimately decides where a child’s personal injury settlement goes. The settlement must first be examined by the court to see if it meets the injured child’s needs.
Once approved, a judge would often put the settlement money into a blocked account, with withdrawals only authorized for a documented, specific need the child had. The child would usually have access to the full money when they turned 18. The money may also be placed in a trust.
The parents of the child usually wouldn’t have direct control over the money. But parents or legal guardians do have a legal path to secure compensation for the medical bills they’ve paid for.
Judgments for Child Personal Injury Victims
After a scary bicycle accident or a Spokane car crash, an injured child may be due support from the at-fault driver. In most cases, it isn’t the victims or their parents who control the money that’s awarded in a personal injury settlement or judgment.
A superior court judge is counted on to oversee any settlement that’s worked out for the injured child, or any lawsuit and trial that results. This differs from when an adult seeks personal injury compensation.
Under Washington’s Special Proceedings Rule 98.16, a judge oversees the negotiations or trial. A judge must also decide on whether a settlement offer is adequate for the child’s needs moving forward.
(a) Approval of Settlement Required. In every settlement of a claim, whether or not filed in court, involving the beneficial interest of an unemancipated minor or a person determined to be disabled or incapacitated under RCW 11.88, the court shall determine the adequacy of the proposed settlement on behalf of such affected person and reject or approve it
Once a settlement offer was made, the court would usually assign a “settlement guardian ad litem” to assess the settlement and advise.
Where A Child’s Personal Injury Settlement Ends Up
A judge then decides where the money is placed and who has access to it.
The court would usually have three options for where the funds are placed:
- A Blocked Account: A blocked account is a secure account that has restrictions on what may be taken out and who may access it. This account would earn interest on the money and would often be locked until a minor turned 18. The money could be accessed if the child had a specific need. This might include the need for surgery. Generally, parents or guardians would petition the court to seek funding for the benefit of the child. The money generally wouldn’t be available to parents to pay their normal living expenses. The funds are protected in case the child requires care in the future.
- A Trust. A court-ordered trust would set the money aside and appoint a trustee to manage the funds. In some cases, this trust money wouldn’t disqualify children from receiving state or federal benefits such as Medicaid.
- Structured Settlement. The money is placed in an annuity that is set up to pay out to victims when they turn certain ages. They may get several lump-sum payments as they hit their college years, so it may be used for tuition. If the money was awarded due to injury, it usually wouldn’t be taxed while in an annuity. In some cases, minors could receive monthly payments to help with any ongoing medical care.
A Separate Claim for Parents
Many of these options are designed to keep parents or guardians from mismanaging a settlement and leaving the injured child with no support in the years ahead.
But parents who spend money paying for treatment for an injured child while they await a settlement could file a separate claim against someone at fault. The money they spent that wasn’t covered by health insurance could be reimbursed.
Parents could also receive compensation for other damages. Generally, the child’s further medical care and hardships would be settled in a separate case involving the courts.
Talking with a Spokane Child Lawyer
The court system may act for the benefit of the child, but that doesn’t mean support is guaranteed. And every injured child would receive different amounts. Judges can get it wrong at times, but a lawyer investigating the case can help the court get the whole story. A lawyer can also work on your child’s behalf, advocating for the most support possible.
Contact a Spokane Child Injury Lawyer to take advantage of a free case consultation to find out what’s possible. There’s also no stress about how you’ll afford to pay a lawyer. If your child needs us, we don’t charge anything unless the case is successful. Then we are paid out of a settlement your child receives.