What options does an Alaska court have for a child's settlement money?

Under Rule 90.2(b)(2): a parent or guardian (if $10,000 or less remains), a formal trust, a conservator, a restricted federally insured account, or a custodian under the Alaska Uniform Transfers to Minors Act.

Can I withdraw from the child's account?

Not without the court's authority. A parent or guardian can move for permission to withdraw for specific expenses that benefit the child.

What can the money be used for?

For a child injured in the accident: medical bills, special education or other costs related to the injuries, or any payment in the child's best interests. For a settlement from another person's death or disability: support and education.

Does Alaska require a structured settlement?

Rule 90.2 does not list a structured settlement as one of its options. The probate code lets a court authorize an annuity contract as a protective arrangement, so ask the court.

When does the child get the money?

The rule does not set one age for every option. Ask the court what the order says, since the age of majority in Alaska is 18.

Blocked Accounts vs. Trusts and Other Ways to Hold a Child's Settlement in Alaska

By the FigureMyTax Editorial Team · How we calculate

After approving a minor's settlement, an Alaska court must order the remaining balance disposed of in the child's best interests. Rule 90.2 lists five options, and a parent can hold the money only if $10,000 or less remains.

The five options in the rule

Under Alaska Civil Rule 90.2(b)(2), the court may order that the settlement: (A) be held by a parent or guardian for the child if the remaining balance does not exceed $10,000; (B) be placed in a formal trust for the child; (C) be held by a conservator; (D) be deposited in a federally insured financial institution in an account from which withdrawal is not permitted without court authority; or (E) be transferred to a custodian under the Alaska Uniform Transfers to Minors Act.

A parent holding the money

This option is available only for balances of $10,000 or less. The court's petition form puts it first among the choices, and the amount left after fees, costs and bills is what counts. Check your number in the Alaska minor's settlement calculator.

A restricted (blocked) account

The money is deposited in a federally insured institution and cannot be withdrawn without the court's authority. The court's form says a parent or guardian may ask permission to withdraw money for specific expenses that benefit the child. It is the simplest arrangement for a modest balance.

A trust or a conservator

A formal trust or a conservator adds management and cost, which is why courts usually reserve them for larger amounts or longer needs. The probate code also lets the court, in a protective proceeding, authorize arrangements that include deposits, annuity contracts and trusts. Ask the court whether it will approve an annuity or structured payout in your case.

A Uniform Transfers to Minors Act custodian

The court may order the money transferred to a custodian under the Alaska Uniform Transfers to Minors Act, found at AS 13.46. Ask the court what the custodian can do and when the child receives control.

Taking money out later

Rule 90.2(b)(3) says the person or institution with authority may allow disbursement for the child's support and education if the settlement came from another person's death or disability; for medical bills, special education or other costs related to the child's injuries if the child was injured; or for any payment in the child's best interests after considering the benefit to the child, the resources of the parents or guardian, and the amount of settlement money left. The court publishes a motion form for disbursement (PG-910).

Before you choose

Read why a judge approves the settlement and who sets the attorney fee, since both decide how much reaches the account.

Injured in Alaska?

A local personal injury attorney can review your claim — many offer a free consultation.

Talk to an Alaska attorney

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Alaska's rules apply to your specific case with a licensed Alaska attorney.