Detailed answer: how access works under New Hampshire practice

When a minor in New Hampshire receives settlement money (for example, from a personal injury claim, medical malpractice, or a wrongful-death settlement on behalf of a child), the probate court generally must protect the child’s interests. That protection commonly means one of these outcomes:

• Court-approved settlement with funds deposited under supervision: The court may approve the settlement and order the money deposited into a protected account or trust until the child reaches majority (18). The court can also approve limited withdrawals for specific needs such as medical care or education.
• Conservatorship/guardian of the estate: The probate court can appoint a conservator or guardian of the child’s estate to manage the funds. The appointed fiduciary typically must account to the court and may need court permission before spending principal on large items or non-routine expenses.
• Structured settlement or designated trust: Parties can arrange a structured settlement or create a minor’s trust (for example, a spendthrift trust or educational trust) as part of the settlement terms to pay medical bills or tuition directly or to allow distributions at certain ages or milestones.
• Custodial account options (UTMA/UGMA-type rules): Some settlements can be placed in custodial accounts (custodian holds funds for the minor). Under custodial rules the custodian can use funds for the minor’s benefit (including education and health care), but the minor gains full control at the statutory age. Whether UTMA/UGMA applies depends on how the settlement and subsequent deposit are structured.

Key practical points under New Hampshire practice:

1. You usually cannot simply spend the settlement money because the recipient is a minor. A parent or caregiver who receives a settlement check payable to the child will often be required by the releasing party, insurer, or the court to place the money in a blocked account, trust, or under court supervision.
2. Court permission is commonly required to withdraw principal for college or non‑emergency medical care. Courts prefer that settlement proceeds preserve the child’s future needs. To access principal before majority, you typically petition the probate court and show the withdrawal is in the child’s best interest (for example, to pay tuition, room and board, or specialized medical care). The court may require detailed cost estimates, receipts, or a proposed distribution plan.
3. A guardian ad litem or guardian of the estate may be appointed. To protect the child, the court may appoint a guardian ad litem to represent the child in the settlement or a guardian/conservator to manage funds after settlement approval.
4. Structured settlements and trusts offer predictable access. If paying college or medical bills is a priority, negotiating a settlement that directs payments to the provider, establishes periodic payments timed with college, or creates a trust with clear distribution standards makes court intervention less frequent and provides certainty.

Where to look for official guidance: the New Hampshire Revised Statutes and the New Hampshire Judicial Branch explain probate, guardianship, and court-supervised financial protections for minors. See the New Hampshire Revised Statutes online index at https://www.gencourt.state.nh.us/rsa/html/index.html and the New Hampshire Judicial Branch self-help and probate information at https://www.courts.state.nh.us/selfhelp/. (Because statutes and local practice change, you should check the relevant probate rules or ask an attorney.)

Typical procedures and what to expect

Below is a common path in New Hampshire when a child’s settlement is at issue:

• Settlement negotiations and draft release: the insurer or defendant may require a court‑approved settlement when the claimant is a minor.
• Filing in probate court: the parties or plaintiff’s counsel file a petition for approval of the compromise/settlement, often including the proposed way the funds will be held or used.
• Appointment of representatives: the court may appoint a guardian ad litem to investigate and recommend whether the settlement is fair to the minor.
• Hearing and court order: the court will hold a hearing (sometimes waived) and then enter an order approving the settlement and directing where money goes (e.g., to a blocked account, trustee, or to pay certain bills directly).
• Requests for early distribution: if you later need money for college or medical costs, you file a petition asking the probate court for authorization showing the funds are necessary and in the minor’s best interest.

Expect the court to ask for: the settlement agreement; proposed accounting; estimates or invoices for college/medical costs; a plan for leftover funds; and sometimes evidence of the proposed trustee’s or conservator’s qualifications and an accounting system.

Options to make college or medical funding easier

If you are still negotiating a settlement, consider these practical drafting strategies:

• Structure payments to match college timelines. Ask for periodic payments to begin when college starts, or to send tuition directly to the school.
• Create a dedicated educational trust or a spendthrift trust. The trust document can authorize distributions for tuition, books, room and board, and approved medical expenses without repeated court petitions.
• Direct medical payments. If the settlement resolves medical claims, ask that future medical payments be made directly to medical providers or placed in an account earmarked for medical care.
• Use custodial accounts carefully. Custodial accounts (e.g., under the Uniform Transfers/Guardianship framework) permit spending for the child’s benefit but often terminate at a set age. Make sure the chosen arrangement fits your timing goals.

Practical example (hypothetical)

Hypothetical: a 15-year-old receives a $120,000 settlement for injuries. The court approves the settlement and orders $90,000 placed in a blocked account under probate supervision and $30,000 paid to cover past medical bills. The parents want to use part of the $90,000 for the child’s college at age 18. The court’s order allows the parents to petition for distributions for education; they must submit the school’s invoice and a distribution plan. Alternatively, if the settlement had created a trust that authorized distributions for higher education, distributions could be made by the trustee without new court approval.

Helpful hints

• Keep all settlement paperwork, court orders, invoices, receipts, and communications with insurers in one place.
• When settling a claim for a minor, ask counsel to propose a solution (trust, structured settlement, or custodial account) that matches your expected needs for college or medical expenses.
• Talk to the insurance adjuster about structured settlement options that pay tuition directly or create annuity payments timed to college entry.
• If you need money before age 18, consult probate counsel early — the court will expect evidence that the disbursement serves the minor’s best interests and may require a hearing and accounting.
• Consider tax and financial aid impacts: settlement interest and investment earnings can affect taxes and FAFSA or financial aid eligibility. Consult a tax professional and financial aid advisor before making distributions or depositing funds into accounts such as 529 plans.
• Expect timelines: probate petitions and hearings take time. Plan ahead if possible so funds will be available when bills are due.