Connecticut General Assembly
OFFICE OF LEGISLATIVE RESEARCH
December 12, 1997 97-R-1456
TO:
RE: Personal Injury Claims for Minor Children
You asked whether the $5,000 figure contained in CGS § 45a-631 is being interpreted by probate court judges as measuring a net or gross amount to the child in a settlement for a personal injury claim involving the child.
CGS § 45a-631 prohibits a minor's parent, spouse, or guardian from receiving or using any property belonging to the minor in an amount exceeding $5,000 unless they are appointed guardian of the minor's estate by probate court. According to Linda Dow, Chief Counsel of the Probate Court Administrator, most probate judges interpret this to mean the net amount the child actually receives. Thus, if a settlement offer is $8,000, but the child will only get $4,900 after attorney's fees and costs, most probate judges would not interpret the statute as requiring the appointment of a guardian for the child's estate.
However, Dow indicated that all probate judges would honor a defendant's request to hold a hearing to appoint a guardian even when the net amount the minor will get is less than $5,000. According to Dow, it is defendants and their insurers who want to make sure that a settlement for a child's benefit is not attacked by the child when he becomes an adult. In order to get this certainty, defendants ask the court to appoint a guardian who then files an application to the court to compromise or settle the minor's claim against the defendant. If the court appoints the guardian and approves the application to compromise the claim, the minor cannot subsequently seek to overturn the settlement and seek more money. According to Dow, the courts then removes the guardian if the net amount the child receives is under $5,000. Dow indicated that during 1996, probate court conducted 924 compromise of claims hearings for minors.
The $5,000 limit was established in 1967 (PA 216). During the 1997 legislative session, five bills were introduced to increase the amount to $10,000 but they did not get out of committee. Copies of two such bills are attached for your information (HB 5325 and 5775).
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