Short answer

Usually you cannot simply take a child’s settlement money and use it as you wish. In North Dakota, money recovered for a minor is treated as the child’s property. To use those funds before the child turns 18, you generally need either (1) a court-approved settlement that authorizes specific distributions for things like medical bills or education, (2) a guardian or conservator (guardian of the estate) with court authority to spend the money for the child’s benefit, or (3) a structured settlement or custodial arrangement (for example, a UTMA-type account) that allows limited access under set terms. Any early distribution typically requires court oversight to ensure the child’s best interests are protected.

Why the court or another formal vehicle is usually required

Courts treat damage awards or settlement money for minors as the minor’s property. This protects the child from misuse of funds by parents or others and ensures the money serves the child’s needs (medical care, education, support). Without formal court approval or an authorized estate representative, a parent or guardian lacks a legal right to expend the settlement on the child’s behalf beyond ordinary day-to-day care.

Common ways to get access to funds for college or medical expenses

1. Court‑approved settlement with specific distributions.

   If the settlement is still pending court approval (or you petition the court to approve a prior settlement), the court can be asked to order specific distributions now — for example, to pay current medical bills or to deposit a designated amount into a college savings vehicle. The judge’s order will explain who can spend the funds and for what purposes.

2. Appointment of a guardian of the estate (conservator).

   A guardian of the estate may be appointed to manage the minor’s money. In North Dakota this is done through the probate/guardianship process in district court. The guardian must follow court orders and use funds for the minor’s health, education, maintenance and support. The guardian typically must account to the court for how funds are spent.

3. Structured settlement / periodic payments.

   A structured settlement can be negotiated so that periodic payments begin before the child turns 18 or so that a portion is available for certain needs (medical care, schooling). Any arrangement that modifies payment timing usually requires court review when the recipient is a minor.

4. Custodial accounts (UTMA/UGMA-type arrangements).

   If funds are placed in a custodial account governed by a transfer-to-minor law or similar device, the custodian may be able to spend money for the minor’s benefit before majority, subject to the statute’s rules. North Dakota resources on transfers to minors and custodial account options can help you evaluate this choice.

What you’ll typically need to do

1. Talk with the attorney who handled the settlement. They can tell you whether the settlement was set up with court oversight or payment restrictions and whether a petition to the court is needed to authorize early distribution.
2. If the settlement hasn’t been court-approved, you (or the child’s attorney) can file a petition in district court asking the judge to approve the settlement and to order specific distributions for medical or educational needs.
3. If the child needs ongoing management of funds, petition the court to appoint a guardian of the estate (sometimes called a conservator). The guardian’s authority to spend on education or medical care will be set by the court.
4. Consider a structured settlement or custodial account for predictable support and to reduce the need for repeated court petitions for each expense.

Practical examples (hypothetical)

Example A: A 15-year-old receives a personal injury settlement. The parents ask the court to approve $25,000 to be paid now to cover current medical bills and another $50,000 to be placed in a guardian-managed account for future education. The judge can approve those specific distributions if they serve the child’s best interest.

Example B: A child’s settlement is paid into a structured settlement that provides monthly payments plus an early lump sum for medical care. Those terms were included in the court‑approved settlement, so the payor releases funds for qualified costs before the child turns 18 per the court order.

What courts look for when deciding whether to allow early access

• Whether the requested expenditure benefits the child (medical care, education, rehabilitation, support).
• The amount requested and whether it is reasonable and necessary.
• Whether a guardian or custodian is in place to manage remaining funds responsibly.
• Whether the distribution protects the child’s long‑term financial interests.

Where to find North Dakota statutory and court resources

For official information about guardianship, conservatorship, and court procedures in North Dakota, you can review materials and forms from the North Dakota Court system: https://www.ndcourts.gov. The North Dakota Century Code is available at the Legislative Branch site: https://www.legis.nd.gov/cencode. These sources explain procedural rules and statutory frameworks you and an attorney will use when seeking court authority to access a minor’s funds.

Helpful hints

• Keep careful records of any medical or school expenses you want the court to approve; receipts and invoices make approval more likely.
• Work with the lawyer who handled the settlement or a local attorney experienced in guardianship and minor settlements — they can prepare the petition the court needs.
• Don’t spend the child’s settlement money on ordinary household expenses for parents; courts can view misuse as improper and may require accounting or sanctions.
• Consider long-term planning: structured settlements, 529 plans, or custodial accounts can protect funds and streamline later use for college.
• Expect the court to require accounting from anyone who manages the child’s funds. Budget and document anticipated costs before filing for access.
• If the child has substantial needs (ongoing medical care), mention that clearly in the court petition — courts give weight to necessary healthcare expenditures.