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Settlement of personal injury claims:
Natural parents do not have an inherent right to settle personal injury claims on behalf of a minor child. Whenever a minor is receiving a settlement from a personal injury, regardless of the amount of the award, an application to approve the minor's settlement must be filed in Probate Court. The Probate Court must authorize approval of such settlements. Insisting upon probate of a minor's claim is within the complete province and control of the insurance company. As your Attorney, I have no discretion or authority over this matter as the law is clear that the Probate Court must authorize a minor's settlement.
Appointment of a Guardian: A guardian is any adult person, association, or corporation appointed by the Probate Court to assume responsibility for the care and management of the person, the estate, or both, of an incompetent person or minor child. If the settlement exceeds $10,000, the Court will require the appointment of a guardian of an estate to file the application, to approve the settlement, and oversee the proceeds of the minor. If the amount is less than $10,000 and the court dispenses with the need for a guardian, a parent or custodian may file the Application for Approval of the Settlement.
Non-Custodial Parent: The non-custodial parent or parents are entitled to seven days notice of the application to settle the minor's claim. This notice may be waived by the non-custodial parent.
The Process: The application will be captioned in the name of the minor. A current statement of an examining physician in respect to the injuries sustained, the extent of recovery, and the permanency of any injuries must accompany the application. The application will state what additional consideration, if any, is being paid to persons other than the minor as a result of the incident causing the injury to the minor. A copy of the birth certificate, a narrative statement, and a copy of the contingency fee for legal representation must accompany the application. The application will be assigned to a magistrate and set for hearing for a date convenient to the Court's docket. The injured minor and the applicant shall be present at the hearing.
The Proceeds: Once the settlement has been approved, the net settlement proceeds must be deposited into a bank and held in the sole name of the minor until the minor reaches the age of 18. You may petition the Probate Court for premature withdraw of any or all of the funds for good cause.
Documents Needed: 1) certified birth certificate, 2) original social security card, 3) certified death certificate of natural parent(s), if applicable, 4) certified custody documents, if applicable, and 5) full name and last known address of the non-custodial parent(s).
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