There are some cases that a child could be injured in a serious accident and collect financial damages from a personal injury lawsuit. The parents are usually given the money until the child comes of age or becomes able to manage the money on their own. However, affairs become complicated when the parents of the child are divorced or separated. There are some general guidelines to consider, however you should contact a personal injury or family law attorney for guidance.
Generally the parent who retains custody of the child is then responsible for managing a personal injury award for them. In the case of joint custody, the parent with primary custody is deemed responsible. However, a court may choose the non-primary parent instead of the parent who holds custody. It should be noted that the money still belongs to the child, and the court is merely assigning responsibility to one of the parents due to the child’s age or inability to manage the money themselves. The decision is primarily made to reflect the best interests of the child, not the benefits for the parents.
Personal Injury Awards for Children
A child who receives a large settlement from a personal injury claim will typically receive the sum in two installments. The first payment usually covers medical bills and legal expenses or any other essentials. The second will cover future medical procedures and treatments and possibly damages for pain and suffering that could affect the child in the future. A trust fund is usually established for the second installment that cannot be touched by the parents, or can only be accessed with permission of the court. The money becomes accessible to the recipient when the child comes of age (typically 18 years old).
Fiduciary Duty
A parent has fiduciary duty toward their child. This applies regardless if the parents are married. A parent that is assigned responsibility for management of the settlement may be restricted by the court to access their child’s settlement award in order to protect the interests of the child.
Contact a family attorney Austin, TX trusts to discuss how your parental rights are affected by a settlement or award that is given to your child after a personal injury. Know your role in the process and how to best protect your child’s money.
Thank you to our friends and contributors at The Law Offices of Ryan S. Dougay for their insight into family law and personal injury.