Can a parent or guardian use a child’s settlement money before age 18 under Louisiana law?

Short answer: Usually not without court approval. In Louisiana, money recovered on behalf of a minor is treated as the child’s asset and the court or an appointed custodian/tutor generally must approve how those funds are held and spent. A judge can, however, authorize limited early disbursements for things like medical care or education if you show a legitimate need.

Detailed answer — how this works in Louisiana

When a minor (someone under 18 in Louisiana) receives money from a lawsuit, insurance settlement, or other legal claim, the law treats those funds as belonging to the child. Courts and guardianship rules exist to protect the minor’s money until they reach majority. That protection usually means:

• The settlement or judgment will often be approved by a court and ordered into a supervised account, trust, or structured settlement that names the child as beneficiary.
• Parents or guardians cannot simply spend the settlement money for any purpose. A tutor/guardian or the party holding the funds must follow the court order and applicable rules.
• If someone wants to use a portion of those funds before the child turns 18 for college, medical bills, or other needs, the custodian or parent must typically ask the court to authorize the disbursement.

Louisiana courts commonly permit limited early distributions if the requesting adult demonstrates that the expense directly benefits the minor (for example, medical treatment related to the injury, special education, or reasonably necessary tuition and fees). Courts balance the child’s long‑term financial protection against immediate needs. If a settlement already created a trust or structured settlement, the settlement documents themselves may include rules about early access; you must follow those terms and obtain court approval if required.

Typical legal mechanisms you will encounter

• Court‑approved settlement orders placing funds in a blocked bank account or trust under judicial supervision.
• An appointed tutor (guardian) who manages the funds under court oversight and who must get approval for major disbursements.
• Structured settlement annuities that pay the minor over time; these often restrict lump‑sum early withdrawals unless a court or the annuity company approves.

What a judge will consider when deciding whether to allow early access

• Is the requested use for the minor’s direct benefit (medical care, education, therapy, specialized equipment)?
• Are there other sources available to pay (insurance, public benefits, scholarships)?
• Will the disbursement substantially reduce the child’s recovery for future needs?
• Does the proposed use follow the intent of the settlement (compensation for injury-related costs vs. general support)?

How to ask the court for early access (practical steps)

1. Talk with the lawyer who handled the settlement. They can tell you how the settlement was structured and whether the settlement papers include instructions for disbursement.
2. If funds are under court supervision, the child’s tutor/guardian files a motion or petition asking the court to approve payment for a specific purpose (e.g., tuition deposit, medical procedure).
3. Attach evidence: provider invoices, written estimates, medical records, school acceptance/tuition bills, and a proposed accounting showing how funds will be used and what will remain for the child.
4. Serve notice to interested parties (other parent, the child’s attorney ad litem if one was appointed, the court’s appropriate office). A hearing may follow.
5. The judge issues an order that authorizes the payment and specifies how funds should be released (direct payment to provider vs. check to the guardian vs. trust distribution).

If the settlement is in a trust or annuity

Many settlements create trusts or buy annuities (structured settlements) that pay over time. Those instruments usually limit direct access to principal. To use funds early, you may need:

• Court approval to invade principal or to direct payments to a creditor or provider.
• Agreement by the trustee or annuity company and court approval if the settlement documents require it.

Examples (hypothetical)

Example A — Medical expenses: A child receives a settlement for injuries. The parent petitions the court to pay for ongoing physical therapy related to the injury. The court reviews medical records and likely authorizes payment if the therapy is necessary and related to the injury.

Example B — College costs: A parent asks the court for a lump-sum distribution for college tuition. The court will weigh the child’s long-term need for those funds against the immediate benefit. Courts sometimes approve payments directly to a school for tuition and fees but are less likely to allow depletion of the child’s entire recovery without a clear plan and justification.

Timing, cost, and likely outcome

Expect the court process to take weeks to months, depending on court schedules and whether there are disputes. Legal fees and court costs apply. If you make a well documented request tied to the child’s needs, courts commonly approve reasonable disbursements for medical care and education-related expenses.

Where to find Louisiana laws and more information

Louisiana statutory and court rules govern tutorship, guardianship, and the approval of settlements for minors. You can search Louisiana laws and review statutes and court rules at the Louisiana Legislature’s official site: https://www.legis.la.gov/Legis/LawSearch.aspx. For case‑specific guidance, an attorney who handles minor‑settlement approvals in Louisiana can explain how the local courts in your parish usually handle these petitions.

Helpful hints — quick checklist before you ask the court

• Get the settlement documents and any court orders that created or supervise the funds.
• Collect written bills, estimates, medical records, school letters, and receipts showing the child’s need.
• Prepare a proposed budget: how much you want, how the money will be used, and what will remain for the child.
• Ask the settlement attorney whether the settlement already allows certain disbursements without further court approval.
• Consider whether a trust could be set up to pay education and medical costs while protecting remaining funds.
• Keep detailed records and receipts for every expenditure tied to the child’s funds; you will likely need to account to the court.
• Consult a Louisiana attorney experienced with minors’ settlements and guardianship petitions—this process differs by parish and by judge.

Disclaimer: This article is educational only and is not legal advice. Laws change and every case is different. For advice about a specific child’s settlement in Louisiana, speak with a licensed Louisiana attorney who handles minor settlement approvals and guardianship matters.