Trusts, Guardians and Conservators for a Child's Settlement in Tennessee

By the FigureMyTax Editorial Team · How we calculate

In Tennessee the court decides whether a child's settlement is paid to the guardian or held in trust. If the child's total property is $25,000 or less and it serves the child's best interest, the court may order delivery to a parent or the person the child lives with without a conservator.

The $25,000 rule

T.C.A. 34-1-104(b) says that if a minor's total property does not exceed $25,000 and the court finds it in the child's best interest, the court may order any person holding it to deliver the money, without a fiduciary, to the natural guardian or the person the minor lives with. The receipt discharges the payer. Any person may petition, and the court may appoint a guardian ad litem.

Retaining the fund

Under subsection (c), when a recovery for a minor of $25,000 or less is decreed and the minor has no legal guardian, the court may keep the fund and have the clerk disburse it for the child's support, maintenance or education under court orders, or direct it to the natural guardian.

Larger amounts

No one may administer a minor's estate without letters of guardianship or conservatorship, except that no fiduciary is appointed if the property is deposited with the court clerk subject to distribution on court order (subsection (a)).

Structured settlements and trusts

Section 29-34-105 requires a hearing for any structured settlement and lets the court decide whether proceeds are held in trust. We did not read rules on bonds, accounting or investment. Read why and when a court holds a hearing and what we found about attorney fees, and see what is left in the Tennessee minor's settlement calculator.

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