§ 16-131-205 — Disbursements under settlement agreements

(a) Any moneys payable under a settlement agreement entered into under § 16-131-204 shall be paid as follows: (1) If the minor or guardian is represented by an attorney and the settlement is paid in cash, by draft, or by direct deposit into the attorney's trust account that is maintained pursuant to Supreme Court rule, to be held for the benefit of the minor, the attorney shall: (A) Deposit the moneys received on behalf of the minor directly into a federally insured savings account that earns interest in the sole name of the minor; and (B) Provide notice of the deposit to the minor and the guardian by personal service or first class mail; (2) If the minor or guardian is not represented by an attorney and the settlement is paid: (A) In cash or by draft, the moneys shall be deposited by the guardian directly into a federally insured savings account that earns interest in the sole name of the minor; or (B) (i) By direct deposit, the moneys shall be deposited directly into a federally insured savings account that earns interest in the sole name of the minor. (ii) The guardian shall provide the person or entity with whom the minor has settled the claim with the information necessary to complete an electronic transfer of settlement funds into a federally insured savings account that earns interest in the sole name of the minor within ten (10) business days of the settlement. (iii) Notice of the deposit of the electronic transfer of funds shall be delivered by personal service or first class mail to the minor and guardian by the person or entity against whom a minor has a claim that settles the claim with the minor; (3) If paid by purchase of an annuity, the moneys shall be paid by direct payment to the provider of the annuity with the minor designated as the sole beneficiary of the annuity; or (4) If the minor is in state custody and the settlement is paid in cash or by draft, the moneys shall be deposited directly into a trust account established by the Department of Human Services for receiving moneys payable to the minor under the settlement agreement and that earns interest for the benefit of the minor. (b) The moneys in the minor's savings account or trust account established under subsection (a) of this section shall not be withdrawn, removed, paid out, or transferred to any person, including the minor, except: (1) Pursuant to a court order; (2) Upon the minor's attainment of eighteen (18) years of age or being otherwise emancipated; or (3) Upon the death of the minor.

Legislative History

Added by Act 2023, No. 468,§ 1, eff. 8/1/2023.