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When a child receives a settlement (for example, from a personal-injury case, wrongful-death proceeds, or an insurance payout), Missouri law treats that money differently than ordinary bank funds. Courts and state rules aim to protect a minor’s financial interest until the child reaches legal adulthood. In most cases you cannot simply spend the money for college or medical bills without following legal steps that give the court oversight.

Key ways courts and parties commonly handle minors’ settlements in Missouri:

• Court‑approved minor compromise: If the settlement resolves a claim that belongs to a minor, a Missouri court generally must approve the agreement or otherwise supervise the handling of the proceeds. The court may require that a guardian ad litem be appointed to review the settlement and that the funds be handled in a way that protects the child’s interest.
• Blocked or restricted account: A court can order that settlement proceeds be placed in a blocked or restricted account (sometimes called a judicially supervised trust or blocked account). The funds remain inaccessible without further court permission. A parent, guardian, or conservator may petition the court to withdraw funds for specific needs (for example, medical treatment or college tuition) before the child turns 18.
• Conservatorship or guardianship of property: For larger sums, the court may require appointment of a conservator (also called a guardian of the property) to manage the funds on the child’s behalf. The conservator must follow court orders and usually must obtain approval before spending principal.
• Structured settlements: Parties sometimes use a structured settlement (an annuity) to provide regular payments. These can be designed to begin at certain ages or to pay for future needs like education or ongoing medical care. Changing or accelerating payments from a structured settlement normally requires court approval and, depending on the circumstances, approval by the annuity issuer and possibly a separate court hearing.

When a parent or guardian wants to use part of the settlement before the child turns 18 — for college or medical expenses — the usual path in Missouri is to ask the court for permission. A court will evaluate whether the requested withdrawal serves the child’s best interest and does not unduly prejudice their future financial security. Judges consider the size of the fund, the child’s needs, available alternatives (insurance, scholarships, public benefits), and whether the withdrawal is reasonable and documented.

Missouri has statutory law and court procedures governing guardians, conservators, and other fiduciaries. For rules on guardianship and conservatorship in Missouri, see the Revised Statutes chapter on guardians and conservators: RSMo Chapter 475 — Guardians and Conservators. That chapter describes duties and powers a court gives to those who manage a minor’s property. Because courts supervise distributions for minors, you will typically need to file a petition in the circuit court that approved the settlement or in the county where the minor resides.

Typical steps to access funds early

1. Gather documentation: settlement agreement, court approval order (if any), medical bills or school invoices, financial statements showing need.
2. Speak with the guardian, conservator, or the lawyer who handled the settlement. They often must start the court petition.
3. File a petition or motion with the circuit court requesting authority to withdraw a specific amount for specified purposes (college tuition, medical treatment, etc.). Include notarized affidavits and supporting invoices or cost estimates.
4. Notify interested parties: the minor (through a guardian ad litem if required), any other parents with legal rights, and sometimes the insurer or defendant.
5. Attend a hearing. The judge evaluates whether the requested disbursement is in the child’s best interest and may approve it conditionally or order alternative arrangements.
6. If approved, the court signs an order directing the blocked account, conservator, or custodian to disburse funds for the approved purpose.

If the settlement was placed in a custodial account (for example, under a state custodial-transfer law) or a 529 college plan, the rules differ. Some custodial accounts let the custodian pay for the child’s education or health expenses without additional court approval, while blocked accounts and conservatorships usually require court action.

Tax consequences and public benefits can change after a withdrawal. For example, settlement proceeds used for past or future medical expenses often have different tax treatment than amounts distributed as general income. Before acting, get advice about potential tax and benefits effects if the minor receives public assistance or Medicaid.

When to get an attorney

Because courts closely supervise minor settlements and because a parent’s authority to spend on a child’s behalf is limited when settlement funds are involved, it is wise to consult a lawyer experienced in Missouri probate or personal-injury matters involving minors if you want to access funds early. An attorney can prepare the petition, gather supporting evidence, and represent the minor’s best interest at the hearing. If you do not already have counsel, the attorney who handled the settlement often remains involved to help get the court order needed for disbursement.

Quick practical examples (hypothetical)

• A family gets a $150,000 settlement for a 10-year-old child’s injuries. The court approves placing the funds in a blocked account. Parents petition the court for $30,000 to pay for ongoing medical care and necessary adaptive equipment. If the judge finds the request reasonable and documented, the court can order that amount released.
• A parent wants to use part of a smaller settlement to pay a high school student’s college tuition at 17. The court may allow a specific, documented tuition payment directly to the college rather than releasing cash to the parent, to protect the remainder for the child’s future.
• A structured settlement provides small monthly payments until age 21 and a lump sum at 25. If the family needs a larger disbursement for immediate medical care, the family must petition the court and the annuity issuer; courts rarely allow acceleration unless the need is compelling and well-supported.

Helpful Hints

• Do not withdraw or spend settlement funds without court authorization if the settlement was court‑approved or funds are in a blocked account — doing so can lead to court sanctions or being ordered to repay the money.
• Document everything: invoices, medical records, college acceptance letters, financial statements, and communications about the child’s needs.
• If you expect college costs, get cost estimates and deadlines from the school. Courts often prefer paying invoices directly to providers (schools, hospitals) rather than giving cash to the parent.
• Consider structured settlement annuities or a court‑supervised trust when settling a new claim — both can be tailored to pay education or medical needs and reduce the need for frequent court petitions.
• Ask about tax effects and how a withdrawal might affect public benefits like Medicaid or Supplemental Security Income (SSI).
• Work with an attorney who handles minor‑compromise petitions and conservatorships in the Missouri circuit where the settlement was approved.

Where to find forms and rules: Look up local circuit court clerk pages and Missouri probate or circuit court forms. For the statutory framework on guardians and conservators, see: RSMo Chapter 475 — Guardians and Conservators. For general Missouri statutes, use the Revisor of Statutes site at revisor.mo.gov.

Disclaimer: This article is educational only and not legal advice. It explains general Missouri law and common procedures. Your situation may be different. To apply the law to your facts, consult a Missouri attorney.