Guardianships, Trusts and Structured Settlements for a Child's Settlement in Indiana

By the FigureMyTax Editorial Team · How we calculate

Indiana courts approving a minor's compromise may direct payment of $10,000 or less to a custodial parent, and otherwise must require a guardian. The statute also contemplates trusts and structured settlements funded under the compromise.

Up to $10,000

The court may direct payment under IC 29-3-3-1 to the person with care and custody of the minor with whom the minor lives, without a guardian, bond or order. That person must use the money for the minor's support, use and benefit, and a payer acting in good faith is not responsible for its application.

Above $10,000: a guardian

If the $10,000 section does not apply, the court must require that a guardian be appointed and that the settlement be delivered to the guardian on the terms the court directs (29-3-9-7(b)). A guardian who is appointed must file an inventory within 90 days and written accounts at least every two years, and the guardian's expenses of the proceeding are paid from the protected person's property (29-3-9-5, 29-3-9-6 and 29-3-9-9).

Trusts and structured settlements

The confidentiality provisions refer to trusts funded under a compromise and to obtaining a qualified order for a structured settlement, so both are contemplated outcomes (29-3-9-7(c) and (d)). The trade-off is predictability and protection against spending everything at once, against less flexibility if needs change.

What we did not find

We found no statute that requires a blocked, court-restricted account for a minor's settlement, and we did not read the Indiana trial rules or local rules on how a court orders the money held. Ask the court what it will require. Then read why a court approves a child's settlement and what we found about attorney fees, and see what is left in the Indiana minor's settlement calculator.

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