A Tale of Two Settlements

When a Child is Injured in an Auto Accident

Sometimes the kid gets hurt in an auto accident.

Just got off the phone with a trust attorney, who will be helping set up a trust to hold and manage funds received for a child’s settlement. The child was a passenger in a small vehicle that was rear-ended at highway speed by a large truck. Profound injuries.

Since the amount will be over $10,000 (actually, somewhere closer to $200k), the Alaska Civil Rules require certain safeguards to be followed to preserve funds over time for the child’s interests. Fortunately for the child, this claim involved three different insurance companies, so there have been sufficient policy amounts, added together, to compensate the child.

A Different Case

Not so much for a different child, different accident. In that incident the child was nowhere nearby, but the child’s parent was tragically killed at the scene. This accident involved only one policy, with the minimum $50,000 per person for liability.

The amount remaining for this child will likely go into a special bank account that can only be withdrawn from for the child with a court order. Not as difficult as it sounds — a simple motion with the court can explain to the judge the child’s particular need for the withdrawal, and the court is typically happy to authorize the disbursal.

Final Thoughts

I just wish there was more for this child. A $50k policy is no substitute for a deceased parent — not that any amount would, but a bigger amount could help smooth the child’s difficult path ahead.