Picture this: Little Juanito is minding his own business when a distracted driver decides to use the sidewalk as an extra lane. Juanito survives (thank goodness), but he’s left with medical bills, scars, and a personal injury lawyer who manages to secure a nice settlement. Great news, right? Well, not so fast—because Juanito is still a minor, which means Florida law has something to say about who’s holding onto that money.
The Rule of Thumb (a.k.a. Florida Statute 744.387)
Florida has very specific rules about minors and settlements:
- If the net settlement (after attorney’s fees and costs) is $15,000 or less, a parent or guardian can usually receive and manage the funds without opening a formal guardianship.
- If the net settlement is over $15,000, the court will require the establishment of a guardianship of the property. That means: annual accountings, court supervision, and a guardian who has fiduciary duties over every penny until Juanito turns 18.
Think of it as Florida’s way of saying: “We trust you, Mom and Dad… but only up to a point.”
Why the Guardianship?
Because kids and money don’t mix well. A 10-year-old with $100,000 in a checking account might think the best investment is a lifetime supply of Roblox credits. The guardianship system is meant to make sure the funds are preserved, invested, and used only for the child’s best interest.
Some Case Examples
- Case 1: Minor received life insurance proceeds from Abuela. Parents asked the Court to allocate one-half of the proceeds to the other grandchild who was inadvertently left out. Court denied the parents’ petition and reinforced that once a guardianship is required (which it was in order for this Minor to receive the life insurance proceeds), the funds belong to the child—not the parents—and any use must be court-approved, which in this case, the Court determined that it was not in the Minor’s best interest to give up half of his inheritance.
- Case 2: Minor is beneficiary of his mother’s estate, which was comprised of approximately $250,000, specifically earmarked for the Minor’s education. Father, via his attorney (aka: me), files a petition requesting the court approve the payment of Montesori school for his daughter. The Court denied the request stating that, if the natural guardian wished for the Minor to attend a private school, it was the natural guardian’s responsibility to cover the costs for same. A reminder that even “small” withdrawals for seemingly reasonable expenses (like a specialized school for a 4 year old) can get shut down if the judge isn’t convinced.
Practical Considerations (and a Little Humor)
- Attorney’s fees and costs matter: Always calculate the net settlement, not the gross. That $20,000 settlement might fall under the $15,000 line after fees, sparing you a guardianship.
- Expect oversight: Annual accountings are due, investments must be prudent, and expenditures need justification. No, “Juanito really wanted a PS5” won’t cut it.
- Turning 18 is the magic number: On their 18th birthday, the guardianship ends, and the child gets full control. Parents: prepare to watch that carefully preserved settlement turn into a Jeep Wrangler with neon lights.
The Takeaway
If you’re handling a case involving a minor settlement in Florida:
- Under $15,000 net? No guardianship needed (but you may still need the settlement approved; I’ll write another blog on that soon!).
- Over $15,000 net? Guardianship required—period.
- Always remember: the court’s role is to protect the child’s best interest (and to make sure the settlement doesn’t mysteriously vanish on Amazon Prime Day).
So, while it might feel like red tape, the guardianship requirement is designed to ensure that when minors come of age, they’re not just inheriting scars and stories—but also the resources to start their adult life on the right foot.
Citations
- Fla. Stat. § 744.387 – Settlement of claims.
- Fla. Stat. § 744.301(2) – Natural guardians; authority over property.
- Fla. Stat. § 744.3025 – Claims of minors.
- Fla. Prob. R. 5.636 – Settlement of claims of minors.
- Fla. Prob. R. 5.404 – Guardian of property; inventory.
- Fla. Prob. R. 5.690 – Annual guardianship accounting.
