How California courts handle money recovered for a minor and early access options

Short answer: Courts normally must approve any civil settlement for a minor in California, and they control how the money is held and released. You can sometimes get court permission to use some of the funds before the minor turns 18 for medical care, education, or other necessary expenses, but you must follow the court process and show that the withdrawal is in the minor’s best interest. This is general information and not legal advice.

Detailed answer — how the law works in California

When a person under 18 receives a settlement, judgment, or award for personal injury, wrongful death (benefit to the minor), or similar claims, California law generally requires court approval of any compromise of the minor’s claim. The Probate Code contains the rules courts use when approving a claim on behalf of a minor. See California Probate Code §3500 and following sections for the statutory framework: Probate Code §3500.

Key points about control and early access:

Court approval is usually required. A parent, guardian, or the minor’s attorney will typically file a petition to the probate court asking the judge to approve the settlement. The court must ensure the settlement is fair and in the minor’s best interest before it approves distribution or placement of funds.
How the court holds the money. The court can order the money placed in different ways: a blocked account at a bank, a conservatorship or guardianship of the estate (if no one else is managing the funds), a structured settlement (periodic payments), or other arrangements that limit immediate access until the minor reaches majority.
Requests to use funds early. If you need money for college, medical care, or other necessary expenses before the minor turns 18, you generally must file a petition with the court asking for partial distribution. The court will evaluate the petition and may grant funds if the use is shown to be reasonable, necessary, and in the child’s best interest.
Who decides? The judge decides after reviewing evidence: medical bills, college cost estimates, family income, alternatives, and any reports from a guardian ad litem or court investigator.

Common ways courts allow early access

Partial distribution from a blocked account: The court may authorize specific withdrawals to pay medical bills or tuition directly to the provider or school.
Structured settlement or periodic payments: The settlement can be structured to pay directly for education or medical needs over time without giving the minor a lump sum until 18.
Appointment of a guardian or conservator of the estate: A guardian/conservator may be authorized to use estate funds for the minor’s support, education, and medical needs subject to court supervision.
Reimbursement to parents/caregivers: In some cases, the court may allow reimbursement of reasonable out-of-pocket medical or educational expenses already paid by a parent, but the parent must prove the costs and that the reimbursement is fair.

What the court looks for when deciding

Whether the requested use is reasonable and necessary (for example, tuition bills, documented medical treatment).
Whether sufficient funds will remain for the minor’s future needs.
Whether the person seeking access (parent, guardian, conservator) is trustworthy and provides a clear accounting plan.
Whether releasing the funds will harm the minor’s long-term interests.

Practical steps to seek access to a minor’s settlement funds

Gather documentation: the settlement or judgment paperwork, itemized medical bills, college tuition statements, financial account statements, and any evidence of other available resources (grants, loans, insurance).
Talk to the attorney who handled the settlement (or get a lawyer experienced with minors’ compromises). The attorney can prepare and file the petition to approve the settlement or to request a distribution.
If the court already approved the settlement and placed funds in a blocked account or under a guardian/conservator, file a petition to the probate court explaining why a withdrawal is needed and how the funds will be used.
Be prepared to show urgency and necessity (e.g., an upcoming enrollment deadline, unpaid medical bills that require payment to continue care).
Attend the hearing. The judge may ask questions, require additional proof, or appoint an independent guardian ad litem or court investigator to report on the child’s best interest.

Other issues to consider

Timing and court delays: Probate court procedures take time. File early and prepare for hearings and possible objections.
Costs: Court costs and attorney fees can reduce the amount available. The court must find attorney fees reasonable before allowing them to be paid from the minor’s funds.
Public benefits: Using settlement money can affect eligibility for Medi-Cal or other means-tested public benefits. Consult counsel or a benefits specialist if the minor receives public aid.
Tax considerations: Some portions of a settlement (like punitive damages or interest) may have tax implications. Speak with a tax professional.
Alternatives: Consider asking the defendant/insurer for structured payments that directly pay medical providers or schools, or ask the court for staggered releases timed to enrollment or treatment needs.

Helpful hints

Start with the settlement documents and the court order that approves the minor’s settlement. Those documents show how the court directed the funds to be handled.
Document everything: keep itemized bills, rejection letters (for scholarships or other aid), and enrollment deadlines; the court will want proof.
Ask the court for direct payments to providers (school or hospital) rather than giving a parent a lump-sum check when possible.
If the minor receives public benefits, get advice before asking for distributions—an unwise distribution can jeopardize benefits.
Consider a targeted petition that seeks only what you need now instead of asking for a large lump-sum early distribution.
Work with an attorney experienced in minors’ compromises and probate procedure; many offer initial consultations and can explain likely outcomes.

Where to look in the law: The court approval rules for minors’ settlements are found in the California Probate Code. See Probate Code §3500 and the surrounding sections for statutory procedures and court authority.

Bottom line: Early access to a minor’s settlement for college or medical needs is possible in California, but you must follow the probate court process and convince the judge that the withdrawal serves the minor’s best interest. The court will prefer arrangements that protect the minor’s future needs while allowing necessary payments now.

Disclaimer:

This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. For specific guidance about your situation, consult a licensed California attorney who handles minors’ settlements and probate matters.