Filing a personal injury claim after an accident in Washington state can be somewhat overwhelming for adults, as they are also focusing on their physical recoveries, missing work, and dealing with the many ways that the incident has affected their lives. However, when a child is injured in an auto accident, this process can become all the more stressful for family members coping with their child’s recovery. When an adult is awarded a personal injury settlement, they are able to receive the funds in a fairly straightforward manner. Typically, the insurance company will send the settlement funds to your attorney, where it will be held in a separate trust account until any liens, attorney fees, or other costs are paid off first. The remaining funds will then be transferred to you. If the injured party is under the age of 18, Washington courts take additional steps to protect settlement funds that are awarded in order to ensure that the compensation will benefit the child in the short-term and in the future. Moreover, the court uses these extra protections to keep adults in the child’s life from mismanaging or inappropriately using the settlement funds.
If your child has suffered an injury in the greater Seattle area, it’s natural to feel overwhelmed by all the ways this incident has upended your life. As you help your child with their physical recovery, it’s important to explore your options for recovering the compensation your family needs to support the costs stemming from the accident (i.e., medical bills, physical therapy bills, pain and suffering, etc.). Seeking the guidance of a highly experienced Seattle child accident attorney can provide you with the understanding and support you need to move through this difficult time with greater ease. Let’s take a look at the steps that Washington courts use when protecting settlement funds for minors and what you can expect when seeking a child injury settlement in Washington state.
Why Child Injury Settlements Receive Court Oversight in Washington State
Children under the age of 18 are generally not allowed to legally manage significant financial settlements or make considerable financial decisions on their own. The court’s responsibility is to ensure that any settlement awarded to the injured party is fair and reasonable, regardless of their age. However, since any settlement funds for an injured child cannot be transferred directly to the minor (because they are not recognized as being capable of sound financial management), the court has a way of protecting these funds from being mismanaged, misused, or prematurely depleted by the child and the adults in their lives.
When a Court Supervised Settlement For Minors May Be Required
Washington safeguards the best interests of an injured child by requiring court approval of any accident settlement involving a minor. A judge must approve the settlement, regardless of whether the case was filed in court or negotiated out of court. Anyone involved in a child’s personal injury settlement can review the minor settlement forms provided by the King County Superior Court.
In most cases, the court appoints a Settlement Guardian ad Litem (SGAL), a neutral attorney whose sole role is to protect the child’s interests. The SGAL investigates the case independently: reviewing the facts of the accident, the child’s medical records and prognosis, the proposed attorney fees and costs, and any medical liens or reimbursement claims. The SGAL may also speak with the parents and, when appropriate, the child. The SGAL then submits a written report to the court recommending whether the settlement is fair and reasonable and how the funds should be protected until the child reaches adulthood, such as through a blocked bank account, a structured settlement, or a trust. Once the report is filed, the court sets a hearing to review the settlement.
As the judge reviews the terms of the settlement, they will determine whether the award is sufficient to support the child’s current and future needs. To receive a personal injury settlement, the injured party must release any future claims related to the injury. In other words, this is the child’s one opportunity to secure the compensation needed to cover the current and future costs of their injuries. For that reason, the judge will make sure the settlement adequately protects the child both now and after they turn 18.
How Child Injury Settlement Funds Are Typically Protected
Any settlement funds that an injured child receives are intended to benefit the child and remain protected until the child reaches the age of majority and is able to have control over their finances. Once the court has approved the settlement terms, the funds are usually placed in a block account. The blocked account prevents the funds from being accessed by anyone other than the minor child when they turn 18. At that time, the 18-year-old will attend a simple hearing to obtain a court order that releases the settlement funds for them to use. In some cases, the court may approve a structured settlement option, which allows for an annuity or tax-free periodic payment plan that can cover future expenses (i.e., college tuition, housing, or medical care). If the child suffers catastrophic injuries that permanently affect their mobility or ability to live independently, the parents or guardians can ask the court to use the settlement funds to set up a special needs trust so that the victim can qualify for government assistance and still use the settlement funds to support themselves.
Common Child Injury Settlement Mistakes Families Should Avoid
As you move through the child injury settlement process, it’s worth recognizing some common mistakes to avoid so that you can protect the best interests of your child as much as possible. Here are just a few of the misconceptions and mistakes that should be avoided when moving through this process:
- Assuming the settlement funds can be freely accessed at any time (and without court approval)
- Spending settlement funds without obtaining the required court authorization
- Accepting a settlement before fully understanding your child’s long-term medical needs
- Neglecting to account for future expenses associated with permanent injuries
The best way to protect your child’s best interests and ensure that they receive the financial support they need is to seek the guidance of a highly experienced Seattle child injury lawyer.
FAQs About Child Injury Settlements in Washington State
Can parents use settlement money for everyday household expenses?
Generally, settlement funds are supposed to benefit the injured child, so court approval is required before any funds can be used for these types of purposes.
When can a child access their settlement funds?
It depends on how the settlement is structured. Some funds may become available when the child turns 18, while others may be available sooner to cover court-approved needs.
Can a child’s settlement be placed in a trust?
Yes. Depending on the circumstances, a trust of structured settlement may be an effective way to protect the funds and support future needs.
Seattle’s Trusted Personal Injury Law Firm
Scott & Scott, PLLC, is a family law firm led by a father and daughter team. With decades of combined experience, our highly qualified personal injury attorneys are ready to help you recover the compensation you need to start getting your life back on track after an accident. We believe in providing customized and effective legal services so that we can advocate on your behalf, allowing you and your family to focus on what matters most: Your recovery. Please reach out to our Seattle, Washington office today by calling (206) 622-2200 to get started with a trusted and experienced personal injury attorney.