You do all you can to protect your child as a parent, but there are times when you are powerless against misconduct by negligent parties. Traffic accidents are an example, as the National Highway Traffic Safety Administration (NHTSA) reports that almost 157,000 children are injured in traffic crashes annually. Slip and falls, defective children’s products, and birth injuries are also scenarios in which your child is at risk.
If your son or daughter was harmed in an accident, there are legal remedies available to recover compensation. However, a child under 18 lacks legal capacity. You can ask a Maryland personal injury lawyer about specifics, but here’s some background on what happens if a minor gets a personal injury settlement.
What Happens to a Minor’s Personal Injury Settlement in Maryland?
When a minor in Maryland receives a personal injury settlement, the funds aren’t simply handed over to the child. Because minors lack the legal capacity to manage large sums of money, the court oversees the process to ensure the child’s best interests are protected.
Generally, the settlement funds are placed in a restricted account, often a guardianship account or a structured settlement. These options are designed to preserve the money until the child reaches the age of majority (18 in Maryland).
Options for Minors’ Injury Compensation in Maryland
Two primary methods exist for managing a minor’s injury compensation in Maryland, and both provide safeguards to protect the minor’s financial well-being.
1. A guardianship involves appointing an adult (often a parent or close relative) as a guardian to manage the funds. The guardian must adhere to strict court oversight and provide regular accountings of how the money is used.
2. A structured settlement involves purchasing an annuity that provides regular payments over a set period. This option offers tax advantages and can be tailored to meet the child’s future needs. Such as college tuition or living expenses.
The Court Approval Process for Minor Settlements in Maryland
In Maryland, any personal injury settlement involving a minor requires court approval. This process is crucial to ensure the settlement is fair and adequate to compensate the child for their injuries. The court will:
· Review the details of the accident.
· Assess the extent of the child’s injuries.
· Evaluate the proposed settlement amount to see that the child’s needs are covered.
A judge must sign off on the settlement before it can be finalized. The court’s involvement provides an extra layer of security for the child’s financial future. And ensures the settlement is used appropriately.
Contact a Baltimore County Personal Injury Attorney ASAP
Your claim may be complicated by the fact that your child is a minor, so legal representation is important. An experienced attorney can guide you through the complexities of court approvals, guardianship accounts, and structured settlements, supporting your child’s best interests. Our team at the Law Offices of Michael A. Freedman understands these unique challenges, so we’re here to help you secure the maximum compensation your child deserves. Please call us at 410.363.6848 or go online to schedule a free consultation at our offices in Owings Mills or Glen Burnie, MD.
