When a child is awarded a settlement after an accident in Texas, that money is meant to safeguard — not to pay off unrelated debts or hospital bills. Unfortunately, without proper legal planning, creditors may try to lay claim to those funds. That’s why it’s crucial for families to understand how to protect a minor’s injury settlement.
Under Texas Property Code Section 142.005, courts are allowed to establish a trust or restricted account to hold a minor’s injury settlement. This legal framework ensures the money is used only for the child’s benefit and remains safe from outside claims. A court may also mandate structured settlements, which provide payments over time, further limiting access by creditors.
As a Dallas personal injury lawyer, I’ve seen families unintentionally lose significant portions of a child’s settlement due to poor structuring or lack of legal guidance. In some cases, hospitals place liens on the settlement before the family has a chance to protect it. A properly negotiated lien or court-approved trust can make a world of difference.
Families in the Dallas-Fort Worth area often ask, “Can’t I just hold the money myself?” Unfortunately, doing so can leave the funds vulnerable. That’s why it’s important to work with a qualified Dallas injury claim lawyer or Dallas accident injury attorney who can set up a compliant financial structure that shields your child’s compensation.
Ultimately, protecting a child’s injury settlement is about ensuring they receive the long-term support they deserve. Whether the injury occurred in a car accident, a bicycle crash, or a pedestrian incident, these funds are crucial for future medical care, education, and life stability.
If your child has received or is about to receive a settlement, don’t take risks. Speak with a Dallas personal injury attorney who understands how to structure funds securely and legally. A small investment in proper planning now can protect a child’s financial future for years to come.
