As personal injury lawyers, we at ATAC LAW understand the importance of protecting the rights and interests of minors who have been injured in accidents. In Nevada, minors who have suffered damages due to someone else’s negligence have the right to pursue compensation through a legal claim or lawsuit. However, given their age, minors cannot make legal decisions on their own, and thus, their parents or legal guardians must take charge of any legal proceedings on their behalf.
What is the meaning of Nevada compromise of a minor’s claim?
The term “compromise of a minor’s claim” refers to the resolution of a contested claim for monetary compensation on behalf of a minor who is not yet considered legally independent. This typically applies to individuals under the age of 18. The compromise of a minor’s claim refers to reaching a settlement agreement regarding the disputed claim for financial compensation. The aim is to ensure that the minor is properly compensated for their injuries or expenses, considering their age and legal status as a minor.
Who has the right to compromise a claim on behalf of a minor?
In Nevada, a minor is not legally permitted to enter into a contract. However, there are provisions in Nevada law that allow certain agreements, specifically out-of-court settlement agreements or “compromises,” to be legally binding if a court of competent jurisdiction has approved them. These compromises are made on behalf of the minor by specific individuals who have the legal authority to represent them. These individuals include:
- Either parent: If the parents live together, either parent has the right to enter into a compromise agreement on behalf of the minor.
- Custodial parent: If the parents are living separately and custody has been awarded, the custodial parent has the authority to make a compromise on behalf of the minor.
- Parent with whom the minor is living: If no custody award has been made, the parent with whom the minor is residing has the right to enter into a compromise agreement.
- General guardian or guardian of the estate: If a general guardian or guardian of the minor’s estate has been appointed, they have the authority to make a compromise on behalf of the minor.
In summary, the right to compromise a claim on behalf of a minor in Nevada rests with the parents (either if they live together, or the custodial parent if they live separately) or the parent with whom the minor is residing. Alternatively, if a general guardian or guardian of the minor’s estate has been appointed, they can also enter into a compromise agreement.
What is the procedure for compromising a minor’s claim in Nevada?
To compromise a minor’s claim in Nevada, the compromise must be approved by the district court. The specific court that needs to approve depends on whether the minor resides in Nevada or outside of Nevada.
To obtain approval, a written petition must be submitted to the court. The petition should include the following information:
- The name, age, and residence of the minor.
- The circumstances that make the claim a disputed claim for money.
- The name of the third person against whom the claim is made.
- If the claim is the result of an accident, include the date, place, and facts of the accident.
- The names and residences of the parents or legal guardian of the minor.
- The name and residence of the person or persons with physical custody or control of the minor.
- The name and residence of the petitioner (the person filing the petition) and their relationship to the minor.
- The total amount of the proposed compromise and how the proceeds will be allocated, including any amounts for attorney’s fees, medical expenses, or other expenses.
- Indicate whether these fees and expenses will be deducted before or after calculating any contingency fees to be paid to the lawyer.
- State whether the petitioner believes that accepting the compromise is in the best interest of the minor.
- Confirm that the petitioner has been advised and understands that accepting the compromise will prevent the minor from seeking further relief from the third person involved in the compromise.
- This petition, along with all necessary documentation, should be submitted to the district court in the appropriate jurisdiction. Once the court reviews the petition and supporting documents, they will decide whether to approve the compromise on behalf of the minor.
What details must be included with the petition to compromise a minor’s claim?
When submitting a petition to compromise a minor’s claim, it is important to include specific details and documentation related to the claim. If the claim involves a personal injury to the minor, the following information must be included in the petition:
- Documentation of the injury, prognosis, treatment, and progress of recovery of the minor. This information helps the court understand the extent and nature of the injury suffered by the minor.
- The amount of medical expenses incurred up until the time of filing the petition. This includes all costs associated with medical treatment and healthcare services related to the injury.
- Details regarding the nature and amount of medical expenses that have been already paid and to whom they were paid. This helps establish the financial transactions and obligations related to medical expenses.
- Any outstanding amount that is owed for medical expenses incurred. This includes any outstanding balances or debts that are yet to be paid for the medical treatment received by the minor.
- An estimate of the amount of medical expenses that may be incurred in the future. This estimation helps the court understand the potential ongoing medical costs related to the injury and factor them into the compromise agreement.
Additionally, if relevant to the claim, it is crucial to include all relevant medical and healthcare records associated with the injury. These records provide further evidence and support for the claimed injury, treatment, and associated costs.
Who is entitled to the money when a minor’s claim gets compromised in Nevada?
When a minor’s claim is compromised in Nevada and the court approves the compromise, the money will be directed either to the minor’s parent, guardian or general guardian.
The court has two options:
- To direct the money to be paid directly to the father, mother or guardian of the minor. This may or may not require the filing of a bond.
- To require a general guardian or guardian ad litem to be appointed, and the money to be paid to them. This may or may not require a bond.
Ultimately, it is up to the court’s discretion to decide what option is in the best interest of the minor. This means that the court will choose the option that is most advantageous for the minor, including factors such as their current and future financial needs, the nature of the claim, and any other relevant circumstances.
What is the stance of Nevada law regarding a blocked trust account after a minor’s compromise?
According to Nevada law, after a minor’s claim has been compromised and the proceeds are ordered to be paid to the parent or guardian, they are required to set up a blocked financial investment for the minor’s benefit.
Under Nevada law, a “blocked financial investment” for the compromise of a minor’s claim may include:
- A savings account opened at a depository institution in Nevada.
- A certificate of deposit.
- United States savings bond.
- A fixed or variable annuity contract.
- Any other dependable investment option that has been approved by the court.
Essentially, the parent or guardian must establish a secure financial investment for the minor following the compromise of their claim, as mandated by Nevada law. This ensures that the proceeds from the compromise are protected and allocated for the minor’s benefit responsibly and reliably.
Are there any continuing reporting obligations to the court after the settlement gets approved?
After a settlement is approved, there are specific reporting obligations that must be met and maintained by the parent or guardian responsible for managing the blocked financial investment established for the minor.
Within 30 days of receiving the settlement proceeds, the parent or guardian must provide the court with proof that the blocked financial investment has been set up as required.
If the balance of the investment exceeds $10,000, the parent, guardian, or individual managing the investment must annually submit a verified report to the court detailing the investment’s activities over the past 12 months.
If the balance of the investment is $10,000 or below, the court has the authority to instruct the responsible party to file periodic verified reports as deemed necessary.
The court may decide to schedule a hearing on a verified report only if it believes that a hearing is required to gain clarity on the investment’s activities.
In essence, the parent or guardian must provide proof of the established blocked financial investment within 30 days of receiving the settlement proceeds. Depending on the investment balance, annual or periodic verified reports may need to be submitted to the court to ensure transparency and oversight of the investment activities for the minor’s benefit.
How can money be acquired from the blocked trust account?
There are two ways in which money can be acquired from the blocked trust account:
- An order from the court: The beneficiary of the blocked financial investment can obtain control over the money or assets in the account by obtaining an order from the court where the compromise hearing was held. This order will authorize the release of funds or control of the investment to the beneficiary.
- Certification of the beneficiary’s age: If the beneficiary reaches the age of 18, the court that conducted the compromise hearing may issue a certification confirming their age. Once this certification is obtained, the beneficiary can either take control of the investment or choose to close the account and have the money distributed directly to them.
In summary, the beneficiary of a blocked trust account can access the money or assets in two ways: by obtaining an order from the court or by reaching the age of 18 and receiving certification from the court, which allows them to take control of the investment or have the funds distributed to them.
The compromise of a minor’s claim in Nevada is a complex legal process that requires careful attention to detail and compliance with all relevant laws and regulations. As experienced personal injury attorneys, we at ATAC LAW can offer you guidance and representation throughout the process.
