Court-Controlled Depositories and Trusts for a Child's Settlement in Maine

By the FigureMyTax Editorial Team · How we calculate

In Maine, the proposed order for a child's settlement must designate a depository and subject any withdrawals to court approval until the child reaches majority. The court may also require that funds be disbursed through a trust and may require a bond.

The depository

Rule 17A(b)(5) requires a draft proposed order that states all the financial arrangements of the settlement, allocates the funds as indicated in the settlement, designates a depository for the money received for the minor, and subjects any withdrawals to court approval until the minor reaches majority.

Trusts and bonds

The court may make all necessary orders to protect the infant, including requiring that funds be disbursed through the establishment of a trust, and may require the guardian ad litem or next friend to give a bond to truly account for all money received (14 MRSA 1605).

Smaller transfers

Separately, a person who must transfer money to a minor, and does not know of a conservator, may transfer an amount not exceeding the annual federal gift tax exclusion to the person with care and custody, a guardian, a Uniform Transfers to Minors Act custodian, a 529 or ABLE program or an interest-bearing account in the minor's sole name, and is not responsible for how it is used (18-C MRSA 5-103). The recipient may use it only for the child's support, care, education, health and welfare and must give any balance to the child at majority. That protects the payer; it does not replace court approval of the settlement.

What we did not find

We did not read local court forms or the rules for a conservatorship, and we found no Maine statute that prescribes structured settlements or a specific account type. Ask the court what it will require. Then read why a court must approve and what the court sees about the fee, and see what is left in the Maine minor's settlement calculator.

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