Trusts, Lump Sums and Periodic Payments for a Child's Settlement in Connecticut

By the FigureMyTax Editorial Team · How we calculate

Under Connecticut law the Probate Court may, after deducting attorney's fees and costs, authorize the net settlement in a lump sum or periodic payments to the child's estate, to an existing trust or to a new trust.

The statute's menu

General Statutes 45a-151(b) lets the court, to accomplish a compromise, authorize the settlement proposed by the fiduciary in a lump sum or in periodic payments to the estate, to an existing trust or to a newly created trust for those the fiduciary represents. Trusts may include those that comply with section 1917(d)(4) of the Social Security Act. The court considers the best interests of those represented.

Court supervision

A transfer to a court-approved trust created by a fiduciary is subject to continuing Probate Court jurisdiction as if it were a testamentary trust. A guardian of the estate gives a probate bond (45a-629) and files an inventory within two months (45a-634).

A custodian account

A parent may hold the minor's property as a custodian under the Connecticut Uniform Transfers to Minors Act (45a-557 and following) without being appointed guardian of the estate (45a-631(a)). Ask the court what an account like that must do for a settlement above $10,000.

A structured settlement

Periodic payments are an option in 45a-151(b). The trade-off is predictability and protection against spending everything at once, against less flexibility if needs change. A special needs trust can help if the child receives means-tested benefits.

What we did not find

We found no Connecticut statute that requires a blocked, court-restricted account for a minor's settlement or sets a dollar threshold other than the $10,000 rule. The court decides the arrangement in the child's best interest.

Before you choose

Read why a probate judge approves larger settlements and how the fee is capped, then see what is left in the Connecticut minor's settlement calculator.

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