During the estate administration process, money granted to minors must be received in a specific way, according to California law. Specifically, an adult must sign for a child so that a child can receive money.
This process is referred to as a Minor’s Compromise, and below, we’ll answer some common questions about this legal relationship to clarify how it works and how to set one up.
Important Answers About the Minor’s Compromise
Q – Who can sign a Minor’s Compromise?
A – Both parents of a child if they both live with that child. Alternately, the custodial parent or legal guardian of that child can sign a Minor’s Compromise.
Q – What happens if an estate has appointed a legal guardian for a child?
A – Then that guardian can set up a Minor’s Compromise. If, however, there is no guardianship of the estate, the court can establish one, can transfer the minor’s funds to the county treasurer (under specific conditions) or can transfer the funds into a trust for the minor (and the minor will have the right to revoke the trust when (s)he turns 18).
Q – How do I set up a Minor’s Compromise?
A – The first step will be to obtain and complete the appropriate court forms. This will include (but may not be limited to, depending on your situation):
- The Petition to Approve Compromise of Claim, MC-350
- The Application and Order for Appointing Guardian Ad Litem, CIV-010
- The Order Approving Compromise of Claim, MC-351
- The Order to Deposit Money Into Blocked Account, MC-355
- The Receipt and Acknowledgement of Order for the Deposit of Money Into Blocked Account, MC-356
Q – What are the next steps in the process?
A – Once you have completed the necessary forms, you will then have to file them with the court and pay the appropriate filing fee (which is $435 if there is no other civil action pending).
If the amount of money for the minor is more than $5,000, a hearing will typically be held to review the request (in contrast, there will not be a hearing for sums less than $5,000).
Santa Clarita Estate Planning Attorney at the Law Offices of Darrell C. Harriman
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