A very common question is, “If your child is injured, how do the funds get handled when we make a recovery?” And the answer in California is always the same. The funds go into what is called a “blocked account” after a judge approves the settlement.
Whenever a minor is involved in a case, we go to court and we get a judge to approve the settlement – this is called a minor’s compromise. As a general rule, the judge will order that funds are put into a separate blocked account for the child and no one can touch it without court approval. However, during the time that the funds go in and the time the child turns 18, the parents can always ask us to petition the court in order to take some of the funds out for special educational needs of the child, or medical needs, or anything of that nature. And we do that at no charge whatsoever until the child turns 18.