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It the net amount of settlement is $25,000 or more, you must file to have a guardian of the estate appointed prior to the settlement being approved (see instructions for minor guardianship).
Settlements Under $5,000 This is because California law permits Judges to order the funds to be paid directly to custodial parents if the total settlement is $5,000.00 or less. If the total settlement for the minor exceeds $5,000.00, then a Minor's Compromise and a subsequent hearing must commence.
The objective of a structured settlement for a minor is to cater to the child's needs and ensure there is money remaining for the child when he or she turns 18. Structured settlements for minors are setup to help the minor(s) when they turn 18 years old. However, there are many factors to consider in such settlements.
A minor's compromised claim is a procedure to allow an adult to sign on behalf of a child, so the child may receive funds awarded in a legal action. The law does not allow a child to sign legal documents on their own behalf until she or he becomes an adult.