Settlement to Minors In Maryland Personal Injury Cases

There are unfortunately many instances where a minor child is injured as a result of the careless choices someone else had made. In these circumstances special attention must be given to the future consequences of the injury, if any. In Maryland personal injury cases the law requires certain provisions be observed when settling a minor's claim. These provisions are to insure that the minor child receive the benefit of the settlement. The law governing settlement of a minor's claims is outlined below. The provision apply only in situations where the proceeds the minor is to receive exceeds $5,000.00. And require funds to be held in trust for the benefit of the child until age of majority. Particualr language must be written on the check in distribution to the minor as outlined below.
§ 13-403. Payment to trustee

(a) Unless a court appoints a guardian of the property of a minor under subsection (c) of this section, if a minor or any other person in whose name a claim in tort is made or judgment in tort obtained on behalf of a minor recovers a net sum of $5,000 or more, the person responsible for the payment of the money shall make payment by check made to the order of


"................................., trustee under Title 13 of the Estates and
          (name of trustee)

Trusts Article, Annotated Code of Maryland, for .............................,
                                                               (name of minor)

minor".


(b) No other act is necessary to constitute the person named a trustee.


(c)(1) In accordance with the procedures for the appointment of a guardian under Subtitle 2 of this title, the court may appoint a guardian of the property of a minor on whose behalf a recovery in tort is sought or has been obtained if the court determines that the appointment would be in the minor's best interest.
(2) The petition for guardianship may be made by an interested person or a trustee under this subtitle.

(d) If a court appoints a guardian of the property of a minor under subsection (c) of this section and the minor or any other person in whose name a claim in tort is made or judgment in tort obtained on behalf of the minor recovers a net sum of $5,000 or more, the person responsible for the payment of the money shall make payment by check made to the order of ".........., (name of guardian), guardian under Title 13, Subtitle 2 of the Estates and Trusts Article, Annotated Code of Maryland, for .......... (name of minor), minor".