Detailed Answer — how it works in West Virginia

This answer explains how settlement money paid on behalf of a child is handled in West Virginia and whether any of that money can be used before the child turns 18 for things like college or medical costs. This is a general overview and not legal advice; consult a West Virginia attorney for guidance tailored to your situation.

When a child (a minor) receives money from a personal injury case, wrongful death distribution, or other legal claim, courts usually treat that money differently than money an adult would receive. In West Virginia, a minor generally cannot control or spend a legal settlement on their own because they lack legal capacity. As a result, the usual options to access or manage those funds before age 18 are governed by court supervision, custodianship or trust arrangements, and by rules that protect the minor’s best interests.

Common legal routes to access or manage a minor’s settlement funds before age 18

• Court-approved minor’s compromise / settlement approval: Most minor settlements must be presented to a court for approval. The court typically appoints a guardian ad litem or requires evidence that the settlement is fair and in the child’s best interest. The court may approve payments directly to medical providers, parents, or other vendors for the child’s benefit without releasing a lump sum to a minor or parent.
• Custodial accounts (UTMA/UGMA-style arrangements): Some settlements are placed in custodial accounts where a designated custodian manages the funds for the minor’s benefit. Custodial accounts allow expenditures for the child’s benefit (education, medical care, housing, etc.), but the custodian’s power and the termination age depend on the specific statute and the settlement terms. The Uniform Transfers to Minors Act (UTMA) or similar state custodial rules may apply; custodians are required to use funds for the minor’s benefit and may be limited by the court-approved settlement terms.
• Trusts: A court or parties can ask the court to place settlement proceeds into a trust (for example, a “minor’s trust” or special needs trust). A trustee manages distributions according to the trust document. Trusts can be drafted to pay for education and medical expenses before age 18 while protecting assets for later use.
• Structured settlements / annuities: The parties can structure payments (for example, scheduled periodic payments) that begin immediately or at specified times (e.g., when the child turns 18 or for specific expenses before 18). The court will evaluate and approve structured settlements intended to benefit the minor.
• Guardianship or conservatorship: If the child already has a court-appointed guardian or conservator, that guardian may ask the court for permission to use settlement funds for necessary expenses. The guardian’s authority is limited and typically requires court oversight.

Practical examples (hypothetical)

Example A: A 15-year-old receives a $75,000 settlement for a car crash. The court approves the settlement but directs that $20,000 will be paid directly to the medical provider for past and ongoing care, $5,000 will be placed in a custodial account for school-related costs, and the remaining $50,000 will be placed in a trust for use at the child’s direction after turning 18.

Example B: A parent asks the court to release part of a minor’s settlement to pay college tuition that will begin when the child turns 17. The court can approve payment directly to the college if it finds the distribution is in the child’s best interest and consistent with the settlement plan.

What a West Virginia court typically looks for

• Evidence the distribution will benefit the child (education, medical care, necessary living expenses).
• A clear plan that protects remaining funds for the child’s future needs.
• Appointment of a guardian ad litem or other independent reviewer when required, to protect the minor’s interests.
• Documentation from providers (billing statements, school invoices, tuition letters) when requesting direct payments.

For statutory text and general code references for West Virginia law, see the West Virginia Code online and the West Virginia Judiciary pages: https://code.wvlegislature.gov/ and https://www.courtswv.gov/. These resources provide the applicable statutes and court rules on guardianships, conservatorships, and other procedures that affect minor settlements.

Steps to take if you want to use settlement funds for college or medical care before the child turns 18

1. Hire a West Virginia attorney experienced in minor settlements or probate/guardianship work. They can draft the petition and supporting documents the court needs.
2. Gather documentation: settlement agreement, medical bills, tuition invoices, evidence of need, and any prior court orders affecting the child’s funds.
3. File a petition with the appropriate West Virginia court asking for approval of the settlement and requesting specific disbursements (for example, direct payment to a school or medical provider, custodial account, or trust).
4. The court may appoint a guardian ad litem to represent the child’s interests; be prepared to provide evidence to the guardian ad litem and the court on why the proposed distribution benefits the child.
5. If approved, the court will enter an order describing how funds are to be handled — follow that order exactly. If funds are placed in a trust or custodial account, work with a qualified trustee or custodian to handle payments properly.

How long does the process take?

Timing depends on the court’s schedule, whether a guardian ad litem is needed, and whether parties agree on proposed distributions. Simple approvals (direct payment of bills) can be relatively quick; contested matters or complex trusts can take months.

When might the court deny early access?

The court may deny or limit requests that:

• Fail to show the distribution is necessary or in the child’s best interest.
• Appear to favor a parent’s personal use rather than the child’s needs.
• Would squander funds that the court believes the child will need later.

Helpful Hints

• Work with an attorney before negotiating or accepting a settlement for a minor — the settlement structure you accept now affects future access to funds.
• Ask the court to pay providers directly when possible (colleges, hospitals, rehabilitation programs). Courts often prefer direct payment to reduce misuse risk.
• Consider a trust if you want continued control over funds and more tailored rules for paying education or medical expenses before age 18.
• If a child has a disability, explore a special needs trust so benefits and public benefits aren’t jeopardized.
• Keep detailed records of all expenditures from the settlement for future court accounting or audits.
• Expect the court to require accounting from any guardian, trustee, or custodian who spends settlement funds on the child’s behalf.

Where to get more information

See official West Virginia resources for statutes and court rules at the West Virginia Code site: https://code.wvlegislature.gov/, and for court forms and local practice guidance, visit the West Virginia Judiciary website: https://www.courtswv.gov/. Your county court clerk can also explain local filing procedures.