Quick overview
If you’ve received a settlement on behalf of a minor in Utah, you may wonder whether you can use some of that money now — for college expenses, ongoing medical bills, or other needs — before the child turns 18. The short answer: maybe. Whether you can access settlement funds early depends on how the money was handled (court-approved settlement, conservatorship, custodial account, or structured settlement) and on a Utah court’s approval. This article explains common paths, what courts usually consider, and practical steps to ask for early access.
Detailed answer — how access works under Utah practice
Key legal principle
When a lawsuit is settled for a minor, a court often must approve the settlement or at least must become involved in how the proceeds are held and spent. That is because courts protect minors’ financial interests. Utah courts use court-supervised mechanisms — such as a conservatorship, a blocked account, or other court-approved arrangements — to hold and control settlement proceeds until the child reaches majority (or until another disposition is approved).
Common ways settlement funds are held and what they mean for early access
- Custodial account (UGMA/UTMA style): If settlement proceeds are placed into a custodial account (where a parent or custodian manages funds for the minor’s benefit), the custodian may spend money for the minor’s health, education, maintenance, or support before majority, provided the spending is consistent with the custodian’s duties. Custodial accounts generally convert to the child at a statutorily set age (which varies by state). Confirm the account type and the age of termination in the account documents and state law.
- Court-ordered blocked or restricted account: Sometimes a court orders settlement proceeds placed in an account that limits withdrawal. A parent or guardian may need the court’s approval to withdraw funds for specific purposes (college tuition, surgeries, treatment). To access funds, you typically petition the court and supply evidence (quotes, bills, medical records, or school invoices) showing the withdrawal is in the child’s best interest.
- Conservatorship or guardianship over the estate: If a conservator is appointed to manage the minor’s money, that conservator can ask the court for permission to spend funds on the minor’s needs. The conservator owes fiduciary duties and must show the court how funds will be spent and accounted for. Courts will approve reasonable expenses (medical care, education) that benefit the minor.
- Structured settlement/annuity: If the settlement was structured as periodic payments via an annuity, early access is limited. The annuity issuer and the court must approve any rearrangement of payment timing. Early lump-sum commutations generally require court approval and, in many cases, agreement from the annuity issuer — and the court will consider whether the change serves the child’s best interest.
What Utah courts want to see
Utah courts typically require clear documentation showing that any early withdrawal will benefit the minor: medical bills, written treatment plans, invoices from schools or housing, financial statements, and a proposed accounting plan. The court will balance the present need against preserving funds for future needs.
Typical process to get early access
- Locate the court order or settlement documents that created or controls the funds. The documents will say whether the funds are restricted, in conservatorship, or in a custodial account.
- If the settlement or court order already authorizes certain withdrawals (for example, medical expenses), provide the required paperwork to the bank or insurer and proceed according to those rules.
- If the order does not authorize the withdrawal, prepare a petition to the court that approved the settlement asking for permission to use a specific amount for a defined purpose. Attach supporting documents (bills, medical records, school invoices, and a proposed accounting).
- Serve notice to interested parties as required by Utah procedure (for example, a guardian ad litem, the other settlement party, or the attorney who handled the settlement).
- Attend the court hearing. Be prepared to explain why the expense is reasonable and in the child’s best interest. The court may approve all, part, or none of your request and may add conditions or require an accounting.
Hypothetical example
Example: A 16-year-old received a $150,000 settlement placed into a court-ordered blocked account. The family now faces $25,000 in ongoing medical treatment and wants the child’s portion to go to care before age 18. The parent files a petition in the same court that approved the settlement, includes medical records and treatment estimates, and asks the court to authorize release of funds for the treatment. The court reviews the records and generally will authorize reasonable payments directly to providers or to the conservator, often requiring periodic accounting.
When immediate payment may be possible without new court approval
Sometimes settlement documents explicitly allow payments for past or future medical expenses or education. If the settlement agreement or court order contains language allowing specific expenditures, follow that language and the payment process set by the bank, insurer, or court. If unsure, contact the bank/trustee or the court clerk before spending money.
Where to find Utah-specific procedural rules and resources
Utah Courts provide guidance on conservatorships and guardianships and on how the court handles minor settlements. Visit the Utah Courts information pages for conservatorship and guardianship and for “how to” guidance: https://www.utcourts.gov/howto/. For statute lookup and to read applicable Utah laws, use the Utah Legislature website: https://le.utah.gov/. If your case involves a structured settlement, the annuity contract and insurer rules also matter.
Practical steps to take now
- Read the settlement documents and any related court order. Identify whether funds are in a custodial account, conservatorship, blocked account, or structured settlement.
- Collect documentation for the expense you want covered: medical records, provider invoices, school tuition bills, financial need statements, and cost estimates.
- Contact the bank/trustee/annuity company to learn payment procedures and whether they require a court order.
- If a court action is needed, prepare a petition asking the court to approve the specific disbursement and attach supporting documents. The court may require notice to other parties and a hearing.
- Keep detailed records and receipts for any funds spent on the child’s behalf; courts and trustees usually require accounting.
When you should get a lawyer
You should strongly consider hiring an attorney if:
- The settlement documents are unclear about how funds are to be used.
- The other side or a trustee refuses to agree to a proposed use.
- You need to petition the court to modify a settlement, to create or end a conservatorship, or to commute a structured settlement.
- The amount is large or the financial management will be long-term.
An attorney experienced with Utah minor-settlement practice can draft the petition, assemble supporting evidence, and present the request to the court in a way that increases the chance of approval.
Helpful hints
- Start by locating the exact documents that created the settlement fund: the settlement agreement and any court order. These govern what you can do.
- If possible, ask providers to bill the account or the insurer directly — courts often prefer payments sent directly to the provider rather than reimbursing a parent.
- Keep everything organized: save receipts, invoices, medical records, and correspondence with the trustee or bank.
- Be specific in your petition: state the amount requested, the payee (provider or vendor), and the purpose, and attach supporting documentation.
- If funds are in a structured settlement annuity, expect extra hurdles. Contact the annuity company early to learn what it will allow and what court steps are necessary.
- If you cannot afford a private lawyer, check whether legal aid or the Utah State Bar Lawyer Referral Service can help you find low-cost or pro bono options.
Where to learn more and find help
Official resources:
- Utah Courts — How To pages (guardianship, conservatorship and court procedures): https://www.utcourts.gov/howto/
- Utah Legislature — use this site to look up governing statutes and procedures: https://le.utah.gov/
Consider contacting a Utah-licensed attorney who handles minor settlements, conservatorships, or structured settlements to get specific advice tailored to your situation.