The courts handle settlements for children differently than those for adults. Arizona law dictates how a party can make payments to minors. Settlements under $10,000 do not have to be approved by the court. Those over that amount must have the judge’s approval. This is important because settlements of child injury lawsuits often involve structured settlements or annuities. You will need an attorney who understands what a court may approve.
Even if the parents receive the settlement money, they have a legal obligation to protect and preserve the money unless there is not enough money to provide for the minor’s needs. If parents use settlement money for the minor’s benefit, they cannot pay themselves. They are only allowed to do that as reimbursement for the money that they have laid out for expenses. If parents use the money to pay for expenses, any unused money is turned over to the minor when they turn 18. However, many parents (often rightfully) do not trust an 18-year old with a large sum of money. This is why structured settlements may pay money every month.