Blocked Accounts, Trusts and Structured Settlements for a Child in Washington

By the FigureMyTax Editorial Team · How we calculate

After approved fees, bills and expenses, a child's Washington settlement of $50,000 or less must go to an insured account withdrawable only by court order, to a duly appointed guardian, or into a court-approved trust. Above $50,000 the court must approve a guardian-overseen deposit, require a guardian, or require a trust.

$50,000 or less

SPR 98.16W(j)(1) says that if the money or property remaining after deduction of all approved fees, bills and expenses is $50,000 or less, the court shall require that the money be deposited in a bank or trust company or invested in an account in an insured financial institution for the child, subject to withdrawal only on court order in the original proceeding; or paid to a duly appointed and qualified guardian or limited guardian; or placed in a trust meeting the rule's conditions.

More than $50,000

Under (j)(2), the court must either, if there is an existing or new guardian who approves, require an insured-institution deposit withdrawable only by the guardianship court; or, if there is no guardian or no approval, require that a guardian or limited guardian be appointed; or require a trust. The Supreme Court's order of November 6, 2020 raised these thresholds from $25,000.

Trust conditions

The court must approve the trustees and trust terms. No family member or other potential residual beneficiary may be the sole trustee, a bonded or insured fiduciary must be sole trustee or principal co-trustee, an annual statement of income, expenses, assets and fees must go to the beneficiary and the court for review, and the court keeps continuing jurisdiction.

Blocked-account orders and structured settlements

Orders directing funds to a blocked account must state that the funds are payable on further court order or to the child at majority, with that date specified. For a structured settlement that needed approval only because the person is a minor, only payments received and to be received before majority count toward the threshold. Counties add forms and deposit receipts.

What we did not find

We did not read each county's local rules. Read why a court must approve and what we found about attorney fees, and see what is left in the Washington minor's settlement calculator.

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