Minor’s Settlements in Delaware

Delaware Courts have recently modified the rule for settling cases involving minors. The old rule was you needed to go to the Superior Court, and have that Court accept the settlement. After that, you then needed to go to the Delaware Chancery Court to file the appropriate papers to make sure it gets put into an account that neither the minor nor the guardian can touch until the minor reaches 18 years of age. At 18 years of age, it is the minor’s money. Occasionally, the money can be used for very exceptional circumstances before the minor turned 18.

The problem with doing it that way is it can become quite expensive going into two different Courts. Within the last year, the courts in Delaware have modified the rule to a certain extent. If the settlement is $25,000.00 or less, you only need to go through the Superior Court to approve the settlement. If the settlement is approve, within sixty (60) days, the guardian must take the money they received for the child and put it in what they call a Minor’s Account. Almost every bank has a Minor’s Account.

The same rules hold true as it was previously. In other words, no one can touch the money in the account until the minor reaches 18 years of age, absent court approval.

If the amount is over $25,000.00 then you still need to go through both the Superior Court and the Court of Chancery to get everything done correctly. The only time that would not occur is if you ended up having what is called a structured settlement. A structured settlement is generally when you are paid a certain amount of money up front, but the remainder is put into what they call an annuity. That means the minor will be paid a certain amount of money over a period of time which can be an extensive period of time depending on how much money you end up receiving as a result of settling the case.

Happily, most cases are less than $25,000.00. I say happily, because it means the injuries can be painful, but not horrible for someone who is under the age of 18 years of age. Therefore, the amendment to the rule does allow it to be done much easier and cheaper than it was previously.

Contact the Law Office of Michael J. Hood

At the law office of Michael J. Hood, in Wilmington, we bring more than 30 years of experience to personal injury victims in Delaware and Pennsylvania. For a free initial consultation, contact us online or call our office at 302-777-1000 for an appointment.