Short answer

Yes — sometimes. Colorado law lets a court or a lawful custodian/conservator approve early use of a minor’s settlement funds for the child’s benefit (for example, medical care or education). You usually cannot simply withdraw or spend a lump-sum settlement without a legal process. How you proceed depends on how the money is held (court-approved settlement, custodial account, structured settlement, or conservatorship) and on what the court finds is in the child’s best interest.

How it commonly works in Colorado (detailed explanation)

When someone settles a claim on behalf of a minor, Colorado courts and state law prioritize protecting the minor’s money until the child reaches majority. The main pathways that affect whether you can access funds early are:

1. Court-approved minor compromise (court-supervised settlement)

   If the settlement was approved by a Colorado district court, the court routinely orders how the funds will be held and who controls them. A court can direct that funds be invested, paid into a blocked account, paid to a conservator, or otherwise protected. To take money before the child turns 18 you typically must return to court and ask the judge to authorize the specific payment (for example, tuition or a medical bill). The judge will weigh whether the payment serves the minor’s best interests.

2. Conservatorship / guardianship of property

   If a conservator (or guardian of property) is appointed under Colorado’s probate/guardianship rules, that person has authority to manage and spend funds for the minor’s current needs and benefit, subject to court supervision and reporting. Significant expenditures or changes often require court approval. Conservatorship law and rules are part of Colorado’s probate statutes and court practice; consult the statutes and the local court for procedure and required filings.

3. Custodial accounts (UTMA/UGMA)

   If the payer placed the money into a custodial account (Uniform Transfers to Minors Act — UTMA or similar), the named custodian may use the funds for the minor’s benefit (which typically includes education and medical needs) before the child reaches the age specified by the statute. But the custodian must use the funds only for the minor’s benefit, keep records, and transfer any remaining balance to the now-adult at majority.

4. Structured settlement or annuity

   If the settlement was set up as a structured settlement (regular payments or an annuity), the contract controls when and how money is paid. Structured settlements can sometimes include riders or terms allowing earlier payments for education or medical needs, but that depends on the existing settlement agreement and the annuity contract. You may need to work with the annuity issuer or ask the court to modify the terms in limited circumstances.

Which path applies to your situation depends on facts such as whether the settlement was approved by a Colorado court, whether the payer placed funds in a custodial account or annuity, and whether a conservator is in place.

Example (hypothetical)

Anna’s 16-year-old son was injured, and Anna settled his claim for $80,000. The court approved the settlement and ordered $60,000 placed in a blocked account for the child and $20,000 to pay current medical bills. Two years later, the child is accepted to college and Anna asks the court to release $10,000 for tuition. Anna files a petition, shows the college bill and the child’s financial need, and the court may approve that specific withdrawal if the judge finds it benefits the minor and does not unfairly deplete the child’s resources.

What the court looks at

• Whether the requested withdrawal is for the child’s direct benefit (education, medical care, necessary support).
• How much of the settlement would remain after the proposed payment.
• Whether other sources of funds exist (insurance, financial aid, other family resources).
• Whether a conservator or custodian is already managing the funds and whether that person recommends the payment.

Colorado’s statutes and court rules govern conservatorships and guardianships and the court process for approving minor compromises. For statutory text and official rules, see the Colorado Revised Statutes and Colorado Judicial Branch resources:

• Colorado Revised Statutes, Title 15 (Probate — guardianship/conservatorship and related topics)
• Colorado Revised Statutes (full text)
• Colorado Judicial Branch (forms and local rules)

Practical steps to request early access

1. Find how the settlement money is held (court order, custodian account, annuity, or conservatorship).
2. Gather documents: settlement paperwork, court order (if any), medical bills, school acceptance/tuition bills, and a proposed budget showing why funds are needed.
3. If the settlement was court-approved or a conservatorship exists, file a motion or petition in the same Colorado district court asking for a specified distribution. Be prepared to explain why the payment is necessary and in the child’s best interest.
4. If money is in a UTMA-style custodial account, confirm the custodian’s authority and that the proposed use fits the legal standard of benefit to the child.
5. If funds are in a structured settlement, contact the annuity issuer and review the settlement paperwork. If a contract modification or court action is needed, follow that process.
6. Consider consulting an attorney experienced with minor settlements or guardianship to prepare filings and represent the request to the court. Even if you proceed pro se, the court will expect a clear petition and supporting evidence.

Helpful hints

• Be specific in requests. Courts prefer clear, itemized petitions (e.g., a $7,200 tuition invoice for fall semester).
• Keep receipts and records of all expenditures from the minor’s funds.
• If the minor has significant ongoing medical needs, ask the court to authorize a payment schedule rather than single withdrawals.
• Explore whether scholarships, grants, or federal student aid can cover part of college costs before tapping settlement funds.
• If the child has a disability, explore a special needs trust or other protective planning to avoid disqualifying the child from public benefits.
• Ask the court or custodian whether a conservatorship or restricted account would better protect the child while allowing necessary payments.

When to get legal help

Seek legal help when the settlement is substantial, the other side objects to early payments, a conservator needs to be appointed, or you do not know how the funds are held. An attorney can prepare court filings, explain local practice, and present evidence the court will expect.