Legal Question in Personal Injury in California
My brother, sister-in-law and her 2 kids were involved in an auto accident a couple years ago. She recently received 2 separate checks for the children. They were made payable to my sister-in-law as the mother of each child. Because my sister-in-law bounced a number checks previously she cannot open up any bank account. Could she sign the checks over to my brother who could then open a trust account for each minor child with him being the only person who could deposit & withdraw the money? Also is there any law barring him from withdrawing any money from these accounts to provide the basic necessities for each child?
Thank you.
1 Answer from Attorneys
No, signing the checks over to your brother would cause him to have income and might raise the specter of his trying to steal from the children. Inform the insurance carrier of the problem and see what they can do [get the brother appointed guardian ad litem]. Check what the terms of the settlement are as to the use of the money. It should provide that the money can only go into a blocked account [which is not a checking account so interest can be earned and their mother should be able to create one at the bank, selecting one that pays interest and is safe]; they can not use the money to provide for the children's necessities as that is their personal obligation as the parents. The settlement funds are intended to compensate the children for their bodily injuries, emotional distress, etc., and, because they are minors, must be held in trust for them until they reach the age of 18.
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