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Short answer: Yes — you often can get some of a minor’s settlement funds before the child turns 18 for things like medical bills or college, but how you do it depends on how the money is held and usually requires court approval or a custodial arrangement under Rhode Island law. Courts focus on protecting the child’s long‑term interests, so they commonly approve targeted payments (for medical care or tuition) but rarely allow unrestricted withdrawal of the entire award.

How settlements for minors are commonly handled in Rhode Island

When a person under 18 receives a settlement (for personal injury, a wrongful death share, an insurance settlement, etc.), parties and insurers typically use one of these methods to hold the money:

• Court‑approved minor’s compromise (blocked account): The court approves the settlement and orders funds placed in a blocked or restricted account. The court controls disbursements.
• Custodial account under a transfers‑to‑minors law (UTMA/UGMA style): A custodian holds funds for the child and may spend them for the child’s benefit without separate court approval, but only for the child’s needs (education, health, support, maintenance).
• Guardianship or conservatorship: A guardian or conservator is appointed by the probate or family court to manage the child’s property and can ask the court to approve withdrawals for specific purposes.
• Structured settlement annuity: Periodic payments are made to the child. To access larger sums early, you may need a transfer approval process or a court order.

Rhode Island court oversight and why it matters

Rhode Island courts oversee minor settlements to protect a child’s assets. If the settlement was approved by a court, that same court usually must approve exceptions to the hold (for early distributions). If funds sit in a custodial account or are managed by a court‑appointed conservator, the custodian or conservator must follow statutory rules and court orders when spending money for the child.

For official information about Rhode Island courts and probate/guardianship procedures, see the Rhode Island Judiciary: https://www.courts.ri.gov/ and the Rhode Island General Assembly: https://www.rilegislature.gov/.

Typical paths to access funds early for college or medical expenses

1. If funds are in a court‑blocked account:

   You (or your attorney) petition the same court that approved the settlement asking for a specific disbursement. Provide invoices/estimates (medical bills, hospital statements, tuition bills, financial aid letters) and explain how the payment serves the child’s best interest. Courts often approve direct payment to a hospital or school rather than handing cash to the parent.

2. If funds are in a custodial account (UTMA/UGMA):

   The custodian may use the funds for the child’s benefit, including health and education, without separate court approval, provided the spending is for the child’s direct benefit. Keep detailed records and save invoices and receipts.

3. If a conservator/guardian manages the money:

   The guardian files a petition or account with the probate court seeking permission to make the specific withdrawal. The court evaluates whether the distribution benefits the child and whether enough funds remain to protect future needs.

4. If the settlement is a structured annuity:

   Contact the annuity issuer and read the settlement/annuity agreement. To accelerate payments or obtain a lump sum, you typically need a transfer or sale of future payments and often court approval to protect the minor’s interest.

What the court looks for when deciding

• Is the requested use clearly for the child’s health, education, or maintenance?
• Are documented costs (invoices, bills, school tuition statements) provided?
• Will the child still have sufficient funds after the distribution for future needs?
• Is the distribution structured to pay providers directly where feasible (e.g., pay the college or hospital directly)?

Practical example (hypothetical)

Suppose a 15‑year‑old received a $100,000 personal‑injury settlement that the court ordered placed in a restricted account. The child now needs surgery costing $12,000 and will attend a community college in two years with estimated annual tuition of $6,000. The parent files a petition with the court, attaching medical bills and the college’s tuition statement, and asks the court to authorize payments: $12,000 directly to the hospital now and $12,000 held or paid directly to the college when registration opens. The court may approve these targeted payments while leaving the rest protected for the child until age 18 (or longer if the court finds a continuing need).

Timing, costs, and what to expect

• Expect a court hearing for petitions to withdraw funds from a court‑controlled settlement.
• Filing fees, court costs, and attorney fees can reduce available funds. Courts will scrutinize attorney fees for reasonableness.
• Plan ahead: college bills typically have deadlines. If the court process will be slow, contact the school’s financial aid office and explain the situation; schools sometimes allow payment plans or deferred enrollment pending legal processing.

Tax and financial aid considerations

• Settlement money used to pay medical bills is generally not taxable as income to the child, but portions allocated to lost wages might have tax implications. Consult a tax advisor.
• Large settlement holdings can affect financial aid eligibility. Work with a financial aid counselor to understand how custodial accounts or lump sums affect FAFSA calculations.

When to get help from a Rhode Island attorney

Get local legal help if you need to: prepare a petition to the probate or family court, interpret the settlement agreement, set up an appropriate custodial account, or seek court permission to access funds. A lawyer familiar with Rhode Island’s minor‑settlement and guardianship practice can draft the petition, assemble required documents, and represent you at any hearing.

Official resources: Rhode Island Judiciary home: https://www.courts.ri.gov/. Rhode Island General Assembly: https://www.rilegislature.gov/.

Disclaimer: This article explains general Rhode Island procedures and common practices. It is educational only and not legal advice. For advice about a specific case, consult a licensed Rhode Island attorney or the appropriate probate/family court.