Conservatorships and Structured Settlements for a Child in Mississippi

By the FigureMyTax Editorial Team · How we calculate

In Mississippi the chancery court that approves a child's settlement controls how the money is paid and held. A conservator needs the court's specific authorization to settle a claim, and a structured settlement requires the guaranteeing policy to be filed with the court.

The court's order

Miss. Code 93-20-431(1)(b) lets the chancery court, after approving the settlement, order the money or property accepted by the ward and paid or delivered as the decree authorizes. The person who receives the money becomes amenable to the court for its disposition for the ward's benefit and need not furnish security unless the court orders it.

Small transfers and use of funds

A person who receives funds for a minor under that section may apply them only to the minor's support, care, education, health or welfare, may not derive a personal financial benefit except for reimbursement of necessary expenses, and must preserve any excess and transfer the balance when the minor becomes an adult or is emancipated.

Conservators

A conservator must give notice and receive the court's specific authorization before settling a claim by or against the ward by compromise or arbitration (Miss. Code 93-20-414(1)(q)). In approving, the court considers the ward's needs, tax consequences and eligibility for government assistance.

Structured settlements

In a "future payment" or "structured settlement" case, a certified copy of any insurance policy or other security guaranteeing payment must be filed in the court file within 90 days of the order authorizing the settlement, unless good cause is shown, and fees are based on the present cash value of the claim (Uniform Chancery Court Rules 6.11 and 6.13).

What we did not find

We did not read the full conservatorship procedure or local forms. Ask the court what it will require. Then read why a court must approve and how the chancellor sets the fee, and see what is left in the Mississippi minor's settlement calculator.

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