Blocked Account for Minors Settlement...dealing Out of State

Updated on July 10, 2012
B.R. asks from Madison, WI
4 answers

So my lawyer for my child is unable to help me with a current situation regarding a settlement that my child should be recieving in a few months. I need to create a blocked account to have the money deposited into and because we are out of state it is needed to have the account set up prior to settlement. I know I have options but what are they, I have called two banks locally one had no idea what I was talking about and the other says the cannot set one up prior to settlement and that they need a court order.

So has anyone had to do this...what was the process like what did you end up doing.

They can't help me locally set up an account and I'd rather not set one up halfway accross the country. We are in the process of waiting to hear which SGAL will be appointed to our child, but was advised that it will help the process to have a blocked account ready and waiting. This would be much easier if we still lived in the state that this all initially took place in but life isn't always that easy :(

Thanks for any help you can give

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More Answers

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C.B.

answers from San Francisco on

Because your child is minor, there has to be a court order to compromise the claim. In other words, the court is looking out for your child and the court can order that the claim be compromised for the amount you are trying to settle for. If the court doesn't think the settlement is a good one for your child, the court can actually deny the request to compromise (settle) the claim.

In the order to compromise the claim, there needs to be language that the settlement proceeds are to be deposited to a blocked account with (name and address of bank) account number ________. It is further ordered that
no one can make any withdrawals from the account without a further order of the court.

If your lawyer is unable to help you with such a routine thing as opening up a blocked account, then you need another lawyer! This is civil law 101!

2 moms found this helpful
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J.T.

answers from New York on

I agree with Cheryl B. ... but if you are satisfied wiht your lawyer in all other respects ask him to recommend a lawyer who can help you set this up.

C.B.

answers from Reno on

i have blocked trust for both of my children for a settlement. my bank would not open the account without the check and court order. after i had both, they opened each one with my childrens name and mine (although only a judge can do anything until child turns 18) then the bank had to fill out a form, notorize it and i had to send it back to the lawyer to be filed with the court. i am not sure how it works interstate but tell the bank that it is a settlement, for some reason they understand that better. good luck to you.

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M.K.

answers from Columbus on

This may, or may not, help but what I did was went to a big national bank that has branches everywhere and set up an account myself - it wasn't called a "blocked" account but it was set up so that my son couldn't touch it till he turns 18 unless I, or his dad, changed it.

There's got to be a bank with branches in several states that should be able to help you. I would go in person and talk to a manager - someone that's been in the banking business long enough to even know what you're talking about. They could probably advise you.

Also, what about Wells Fargo - I know they deal with a lot of different types of accounts and they are definitely everywhere!

Good luck!!

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