The Clerk of Court and Guardians of the Estate for a Child in North Carolina

By the FigureMyTax Editorial Team · How we calculate

A person holding $50,000 or less for a minor with no guardian may pay it to the clerk of superior court, who disburses it only if the parents cannot provide necessities and the child needs support. The clerk may also appoint a guardian of the estate for any minor, and funds may be held under the Uniform Transfers to Minors Act.

Clerk deposits

G.S. 7A-111(a) says a person who has $50,000 or less for a minor under 18 with no guardian may pay it into the office of the public guardian or the clerk of superior court of the county of the recipient's domicile. The receipt is a valid release of the payor to that extent.

Strict disbursement

The clerk may disburse the money at the times and in the amounts the clerk judges to be in the child's best interest, but must first determine that the parents or other persons responsible for the child's support are financially unable to provide the necessities and that the child needs maintenance, support or other necessities, including education. The clerk must require receipts showing the money was used exclusively for the child.

Guardians and the Transfers to Minors Act

The clerk may appoint a guardian of the estate for any minor, an adult individual or a corporation authorized to serve as a fiduciary (G.S. 35A-1224). Funds may also be transferred and administered under the Uniform Transfers to Minors Act (35A-1227).

What we did not find

We found no statute on structured settlements for minors or on blocked accounts. The School of Government summary says courts ask who will hold the funds and how they are protected until majority, and that parties arrange for the clerk or a guardian of the estate to hold them. We did not read the guardian bond and accounting rules. Then read why a court must approve and how the court sees the attorney fee, and see what is left in the North Carolina minor's settlement calculator.

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