Why do courts require minor’s funds to be put into a restricted guardianship account?
The answer is actually quite simple…to protect the minor. In Mississippi, the courts want to ensure that the minor’s funds are protected and not wasted by the minor before the minor is at an age where he will hopefully make better decisions as to how to spend the money. These accounts also ensure that the parents do not go and spend all of the money, which is the minor’s money and is to be used solely for his benefit.
In Mississippi, Judges require a minor’s funds that are received pursuant to a settlement to be put into a restricted guardianship account where the balance cannot be accessed except by court order. While these guardianship accounts are technically only required by statute when the settlement is over $25,000, many judges still require the guardianship accounts when the settlement is over $10,000, which is what the old law required. In order to access the minor’s money from the restricted account, you must petition the court and get an order allowing the funds to be used for specific items.
Judges are very conservative in what they allow these funds to be used for so that the minor will have funds remaining to use for college or other matters once they have turned 21. See a previous blog I wrote regarding the types of things judges allow these to be used for here.
If you need assistance with any type of guardianship or any other family matter, contact Teresa E. Harvey by calling 601-948-8005 or by going to our live chat on our website.