Short answer: You may be able to access a child’s settlement money before the child turns 18, but only in limited ways and usually only with a court’s approval or under a legally authorized arrangement. Minnesota law protects settlements for minors; courts and custodial rules control how and when money can be spent. This summary explains the common options, the steps to request early access, and practical considerations.

Disclaimer: This is general information, not legal advice. For specific guidance about your situation, consult a licensed Minnesota attorney.

How Minnesota law treats settlements for minors

When someone settles a legal claim for injuries to a minor (for example, a personal injury settlement), Minnesota courts and statutes treat that money as the minor’s property. Courts usually require formal approval of the settlement or supervision of how the funds are held and spent to protect the minor’s interests. That means a parent or caregiver cannot freely spend those settlement proceeds without the legal authority to do so.

To review the state statutes and court rules that generally govern guardianship, conservatorship, and other protective proceedings, see the Minnesota Revisor of Statutes and Minnesota Judicial Branch resources:
Minnesota Statutes (Revisor) and
Minnesota Judicial Branch: Guardianship Help.

Common ways to hold and access a minor’s settlement funds

1) Court-approved blocked account or trust

Often the court will order settlement proceeds deposited into a blocked (court-approved) account or a trust for the child. The court’s order will specify who manages the money and whether limited distributions are allowed for things like medical care or education. If the funds are in a blocked account, you generally must petition the court to release funds for a specific purpose and show why the payment benefits the child.

2) Custodial account under state transfer-to-minor rules (UGMA/UTMA-style)

Settlements can sometimes be placed in a custodial account (for example, a transfer-to-minor arrangement) where a custodian manages assets for the child’s benefit until the statutory age of termination. Custodial accounts carry fiduciary duties: the custodian must use the money for the minor’s benefit (including reasonable educational and medical expenses). The rules about the custodian’s authority and termination age vary by state and by how the settlement was structured, so check how the settlement paperwork sets this up in Minnesota.

3) Conservatorship or guardianship of the estate

If the settlement is large or there are competing interests, a court may appoint a conservator (guardian of the estate) to manage the minor’s money. A conservator can petition the court for authority to pay for education, medical care, or other needs. The conservator must account to the court and follow court orders.

4) Structured settlement annuity

Some settlements use a structured settlement (periodic payments from an annuity). Structured settlements often include protections for the minor and may allow limited early payments under rules approved by the court or under federal tax rules for certain needs. Early lump-sum advances may be possible through court-approved life-care or qualified assignment arrangements, but these require careful review and court permission.

When early access is allowed — typical examples

• Medical care directly related to the injury that produced the settlement, when bills exist and the settlement holder (custodian/guardian) seeks court approval to pay them.
• Tuition, room and board, or direct college expenses when you can document admission, cost estimates, and show the request benefits the child.
• Special therapy, assistive devices, or home modifications required for the child’s documented needs.

In each case courts want evidence that the proposed distribution is in the child’s best interest and that the remainder will still safeguard the child’s future financial security.

How to request early access in Minnesota — step-by-step

1. Read the settlement documents and any court order carefully. Identify how the funds are being held and what approvals are already required.
2. Contact the attorney who handled the settlement or the custodian/conservator. They often must file the court petition or motion asking for a distribution.
3. Gather documentation: medical bills, estimates, school acceptance and tuition invoices, letters from providers explaining treatment or programs, and a proposed accounting of how much will remain for the child’s future.
4. File a petition with the juvenile, probate, or district court that approved the settlement. The petition should state the specific amount requested, the purpose, and why it benefits the child. The court will set a hearing and may require a guardian ad litem or other review.
5. Attend the hearing. The judge will evaluate whether the requested use of funds is reasonable and protective of the minor’s long-term interests before authorizing release.

Because procedures can vary by county and by how the settlement was structured, local practice and the settlement order will drive the exact steps.

Practical and financial considerations

• Keep detailed accounting. Courts expect fiduciaries (custodians or conservators) to keep records demonstrating that distributions were for the child’s benefit.
• Understand financial aid impact. Large distributions can affect eligibility for need-based college aid; talk to a financial aid advisor before making large payments directly to or into financial aid calculations.
• Tax consequences. Some settlements include compensation for lost wages, punitive damages, or other categories with differing tax treatments. Consult a tax professional about potential tax reporting before distribution.
• Costs of court proceedings. Petitioning a court and appointing a guardian ad litem or conservator can involve attorney fees and court costs; weigh these costs against the amount you seek to access early.

When to hire a Minnesota lawyer

Contact an attorney if any of the following apply:

• The settlement or court order is unclear about who may spend the funds.
• Other family members or parties dispute the proposed distribution.
• The amount is large, a conservatorship seems necessary, or the custodian needs to seek a court order to release funds.
• Tax, financial-aid, or structured settlement issues create complex consequences.

An attorney familiar with Minnesota juvenile, probate, and guardianship practice can prepare the petition, advise on what documentation the court expects, and represent the minor’s best interests at hearing.

Helpful Links

• Minnesota Statutes (Revisor of Statutes) — search for guardianship, conservatorship, and trust/transfer-to-minor provisions.
• Minnesota Judicial Branch: Guardianship — general court information on guardianship and protective proceedings.

Helpful hints

• Keep the settlement documents and the court order in a safe place. These control how funds can be used.
• Ask the settlement attorney whether the settlement already created a custodial account, trust, blocked account, or structured settlement; that answer often determines the path forward.
• Document every expense paid from the child’s settlement funds and keep receipts, invoices, and communications with providers.
• If you plan to use funds for college, get an itemized cost estimate and guidance from the school’s financial aid office about how a direct payment will affect aid packages.
• When in doubt, request court permission rather than spending the funds and risking an order to repay or other sanctions.