Courts approve minor allocations and direct how funds are held, through blocked accounts, structured settlements, guardianships, or trusts. The requirement applies regardless of parental preference.
Approval protects the settlement from later challenge.
Alternative Names:
Minor's Share Protection|Protection of Minor Beneficiaries
Why it Matters?
Court approval converts a settlement into a durable resolution, since a minor could otherwise disaffirm on reaching majority and pursue the claim anew. That protection is worth the delay approval requires. Structured settlements are frequently preferred for minor shares because they prevent dissipation at majority and match funding to anticipated needs including education.
Frequently Confused with
Related terms
Frequently asked questions
Why is court approval valuable to defendants?
Why are structures preferred for minors?
