Detailed Answer

When a child (a minor) in South Carolina receives money from a lawsuit, insurance settlement, or other claim, the law treats those funds differently than money paid to an adult. Courts and state laws aim to protect a minor’s assets until the child reaches the age of majority. However, under South Carolina law a parent, guardian, or custodian can sometimes obtain court permission to use part of the money before the child turns 18 for specific needs like medical bills or college costs.

Who controls the money?

Typically, the settlement cannot simply be deposited into a parent’s bank account for discretionary use. The usual ways a minor’s settlement is handled include:

• Court-approved compromise or settlement that specifies how funds will be held and used;
• A custodial account under statutes that allow transfers to minors (custodial/UTMA-style accounts), where a custodian manages funds until the minor reaches the age set by the statute;
• A guardianship or conservatorship supervised by the probate court, with the guardian or conservator required to obtain court approval for certain expenditures;
• A structured settlement or annuity that pays for future income or specific payments (e.g., guaranteed medical care or education payments).

Can a court let you access funds early for college or medical expenses?

Yes — but only with court approval and usually only if the court determines the expenditure is in the best interest of the child. Courts frequently permit early distributions for necessary medical care, ongoing treatment, rehabilitation, or educational expenses when the petitioner provides convincing evidence that the costs are reasonable, documented, and directly benefit the child.

Common legal routes to get money early

1. Petition the probate or appropriate court to approve a minor’s compromise or distribution.

   The person handling the settlement (often a parent, guardian, or the plaintiff’s attorney) files papers asking the court to approve the settlement terms and to order a partial distribution for specified expenses. The court may require reports, bills, and a hearing.

2. Ask the court to create a supervised account (guardian/conservator fund).

   A guardian or conservator can be directed to hold the funds and to seek court permission before making major withdrawals. The court can authorize payments for the child’s medical care or education from the account.

3. Use a custodial account under the state’s transfer-to-minor law.

   If the settlement or the parties direct funds into a custodial account permitted under state law (a UTMA-style account), the custodian manages the funds for the benefit of the minor. Rules limit how funds may be used and when the minor gains control.

4. Negotiate a structured settlement or designated-use award.

   Part of the settlement can be structured as payments or earmarked for specific expenses (for example, payments directly to a university or medical provider). Courts may be more comfortable approving distributions that are directly paid to providers rather than to parents.

What evidence the court will want

Courts generally require clear documentation that money will be used for the child’s benefit. Useful items include:

• Medical bills, provider estimates, or treatment plans;
• School costs, tuition bills, acceptance letters, and estimated costs of attendance;
• A proposed budget showing remaining funds and how partial distributions will be managed;
• A proposed order and accounting plan for how the funds will be held and monitored by the court.

Practical limitations and cautions

Even if the court has authority to allow early distributions, it will act to protect the child’s long-term interests. That often means:

• Approving only reasonable, necessary expenses rather than general living costs;
• Preferring payments made directly to providers (hospitals, schools) instead of giving cash to a parent;
• Requiring periodic accounting and continuing court oversight when funds remain in a guardianship or conservatorship.

Where to look in South Carolina law

South Carolina statutes and court rules govern guardianships, transfers to minors, and court approval of settlements. You can find South Carolina statutes and chapter headings at the South Carolina Legislature’s Code site: https://www.scstatehouse.gov/code.php. Search terms that are helpful include “guardianship,” “conservator,” “minor,” “compromise,” and “transfers to minors.”

Next steps

If you want to try to obtain funds early for college or medical care:

1. Collect documentation: medical records, bills, letters of admission from schools, and detailed cost estimates;
2. Talk to the attorney who handled the settlement (or hire a South Carolina attorney experienced in probate/minor-compromise matters);
3. File a petition in the appropriate court (often probate court or the court that approved the settlement) requesting a partial distribution and proposing how the balance will be protected;
4. Be prepared for the court to appoint a guardian ad litem or require an accounting.

Helpful Hints

• Start early: courts may schedule hearings weeks to months out, and documentation often needs time to assemble.
• Get itemized bills and written estimates for medical treatments or tuition; the court prefers concrete numbers and direct-pay arrangements.
• Consider structured distributions: courts are more likely to approve payments made directly to providers (schools, hospitals) than lump-sum distributions to a parent.
• Ask whether a custodial (UTMA-style) account is appropriate — it may allow easier management but gives the child control at the statutory age of majority.
• Keep detailed records of any payments and be ready to provide periodic accountings if the court orders them.
• If possible, get written support from treating physicians or school financial offices explaining why early access is necessary.
• Consult a South Carolina attorney experienced in minor settlements, guardianships, or probate — small mistakes in filings can delay access or lead to denial.

Useful starting point for statutory text and searching South Carolina law: South Carolina Code of Laws – Code Home.