Oregon law requires court approval before settling a minor’s personal injury claim unless the minor will receive $25,000 or less after payment of medical expenses, liens, attorney fees and costs. ORS 126.725. To obtain court approval you must petition the court. Although the settlement proceeds may be deposited into a conservatorship account, that can be expensive as the conservator must file annual accountings showing the court how the funds were spent.
To avoid these expenses, the settlement proceeds may be deposited into a structured settlement. A structured settlement is like a life insurance policy which pays benefits plus interest to the minor after they turn 18. In addition to being cheaper, another benefit is that the interest earned is not taxable. See, Reasons to Structure a Minor Settlement for more information.
Gary R. Johnson is a Central Oregon attorney who has handled personal injury cases since 1994.