Pennsylvania Code › Title 231 - RULES OF CIVIL PROCEDURE › Part I - GENERAL › Chapter 2020 - MINORS AS PARTIES › Rule 2039 - Compromise, Settlement, Discontinuance and Distribution

Current through Register Vol. 54, No. 28, July 13, 2024
(a) No action to which a minor is a party
				shall be compromised, settled or discontinued except after approval by the
				court pursuant to a petition presented by the guardian of the minor.
(b) When a compromise or settlement has been
				so approved by the court, or when a judgment has been entered upon a verdict or
				by agreement, the court, upon petition by the guardian or any party to the
				action, shall make an order approving or disapproving any agreement entered
				into by the guardian for the payment of counsel fees and other expenses out of
				the fund created by the compromise, settlement or judgment; or the court may
				make such order as it deems proper fixing counsel fees and other proper
				expenses. The balance of the fund shall be paid to a guardian of the estate of
				the minor qualified to receive the fund, if the minor has one or one is to be
				appointed. The balance of the fund payable to the guardian of the estate may
				include a structured settlement underwritten by a financially responsible
				entity that assumes responsibility for future payments or a trust as described
				in subdivision (b)(4) of this rule. If the minor has no such guardian and none
				is to be appointed, the court may order:
(1)
				an amount not more than twenty-five thousand dollars ($25,000.00) to be paid
				for the benefit of the minor to the guardian of the person or to the natural
				guardian or to the person or agency by whom the minor is maintained or to the
				minor;
(2) any amount in cash of a
				resident or non-resident minor to be deposited in one or more savings accounts
				in the name of the minor in banks, building and loan associations, savings and
				loan associations or credit unions, deposits in which are insured by a Federal
				governmental agency, provided that the amount deposited in any one such savings
				institution shall not exceed the amount to which accounts are thus insured, or
				in one or more accounts in the name of the minor investing only in securities
				guaranteed by the United States government or a Federal governmental agency
				managed by responsible financial institutions. Every such order shall contain a
				provision that no withdrawal can be made from any such account until the minor
				attains majority, except as authorized by a prior order of the court. Proof of
				the deposit shall be promptly filed of record;
(3) an agreement be executed providing for a
				structured settlement underwritten by a financially responsible entity that
				assumes responsibility for future payments. All moneys paid from the structured
				settlement during minority shall be paid into a restricted account as provided
				by subdivision (b)(2) of this rule;
(4) a trust agreement be executed with a
				corporate fiduciary which is independent from the minor and anyone acting on
				the minor's behalf and is lawfully authorized to engage in trust business in
				Pennsylvania or the state of the minor's domicile, which trust
(i) is designated to receive the
				fund;
(ii) contains such terms for
				investment, disbursement and distribution of the fund as the court deems
				proper; and
(iii) expressly
				provides that it is subject to the court's continuing jurisdiction, including
				the court's right to modify or terminate, for cause shown, although the trust
				may be otherwise irrevocable.