children's compensation Q

happywithlife

my children have been awarded money following a car accident as the other driver was at fault.
its not a particularly massive amount but to us, it is a lot of money (few thousand)
we are due to go to court soon to settle it - although its pretty much all agreed already.
i'm assuming the money goes into some kind of trust or something until they are 18 but don't really know much about it....
can anyone enlighten me?
should i contact somebody about deciding where/how it is 'invested' if that is even the correct term. and if so, whom?

NoQuarter

The money is held by the court until the child reaches 18. There is provision for you to apply to the court if you need some money in the interests for the child such as school fees or a laptop for school or whatever the case may be. You would just need to contact your solicitor when you need the money. They will explain this to you on the court date.

happywithlife

thanks NoQuarter -
i am absoultely clueless bout this. will need to ring solictor anyway tomorrow but i just wanted a quick reassurance/answer there today.
thanks for taking the time to reply!

unclejunior

'a friend of mine' was awarded 6 and half grand for whiplash he suffered when he was a kid. he didn't automatically get it when he turned 18, it took several months for it to be released, 6 or 7 months i think.

when the money was eventually released, he withdrew it all from the bank, and rolled around in it on his bed :pac: just for a laugh.

the money will gather interest over time, not a hell of a lot but theres no such thing of it being invested as you say

happywithlife

again, unclejunior thanks for the reply.
yeah it won;t be much when its split between them, but its better than nothing and it'll handy come college time (hopefully!)

Milk & Honey

You should think of something they need at the moment. The court will usually, if asked, direct the release of a few hundred for a present on the day of the hearing.

happywithlife

thanks milk & honey,
have thought about asking if it were possible for funds to be released to take them to disneyland. my daughter is of an age where she would just love it and constantly asks if she can go. she is our eldest and we've never been on holidays as such apart from day trips here and there. we always say we'll save for it but like everyone else in this country we are living pay check to pay check and just today we've a bill of 475 in the door there is just always something else and a holiday is always way down the list of our priorities. i think sometimes this may be our one chance to take them away for literally a trip of a lifetime....
then again, is that a waste of money and should we really put it away and just get our a$$es in gear and save for such a holiday?
oh i dunno, will have to do some thinking bout that one. my head says save it all my heart says take the opportunity and spoil them for once!

NoQuarter

By all means go to Disneyland but under no circumstances ask the judge to release funds for that reason!

Go with the private college excuse or new laptops or something educational!

Cedrus

AFAIK compensation funds are held 'in trust' not in 'a trust fund'. ie It's not invested in an investment policy which matures on their 18th birthday but the money is there whenever the injured party needs something to make their life better after an accident.
I knew of a kid who had an award held like that for them, his mother had to go to their solicitor every time he needed money and it all had to be receipted and strictly for the kid. The solicitor had some kind of preapproved budget but had to go to the court for any exceptional expenses.

benway

happywithlife wrote: »

should i contact somebody about deciding where/how it is 'invested' if that is even the correct term. and if so, whom?

I'm not overly familiar with Circuit Courts, but for the High Court it's held by the Accountant's Office, based at Phoenix House, in an investment account. I seem to remember the interest being quite substantial for some of these cases. You have to go through the Master of the High Court for payment out - he takes his role seriously, you should be prepared to bring vouching documentation in - quotes for laptops, Communions, orthodontics, holidays, etc. - but he often won't pay the full amount you're looking for if he's not satisfied that it's really needed or if it's not a good deal.

The money is for the benefit of your injured child/children only, so don't expect much beyond enough to cover him/her and one parent if you do decide on the holiday. The applications are made on a Wednesday at the Four Courts, best to make contact with the High Court Central Office in advance to arrange it, ideally by calling in - they're not great at answering the phone or returning emails.

Presume that the County Registrar exercises a similar jurisdiction in the Circuit, would be best to ask your solicitor on that.

ResearchWill

happywithlife wrote: »

thanks milk & honey,
have thought about asking if it were possible for funds to be released to take them to disneyland. my daughter is of an age where she would just love it and constantly asks if she can go. she is our eldest and we've never been on holidays as such apart from day trips here and there. we always say we'll save for it but like everyone else in this country we are living pay check to pay check and just today we've a bill of 475 in the door there is just always something else and a holiday is always way down the list of our priorities. i think sometimes this may be our one chance to take them away for literally a trip of a lifetime....
then again, is that a waste of money and should we really put it away and just get our a$$es in gear and save for such a holiday?
oh i dunno, will have to do some thinking bout that one. my head says save it all my heart says take the opportunity and spoil them for once!

Follow your head. I know of Judges where such applications have been made tearing into the legal team, who have asked for money for holidays etc. and refusing the application.

If you wish to make such an application best time is when the court rules the settlement, they are usually granted for extra lessons, or to buy a musical instrument or computer equipment say the house has a computer but the child would do better in school with laptop.

Milk & Honey

happywithlife wrote: »

thanks milk & honey,
have thought about asking if it were possible for funds to be released to take them to disneyland. my daughter is of an age where she would just love it and constantly asks if she can go. she is our eldest and we've never been on holidays as such apart from day trips here and there. we always say we'll save for it but like everyone else in this country we are living pay check to pay check and just today we've a bill of 475 in the door there is just always something else and a holiday is always way down the list of our priorities. i think sometimes this may be our one chance to take them away for literally a trip of a lifetime....
then again, is that a waste of money and should we really put it away and just get our a$$es in gear and save for such a holiday?
oh i dunno, will have to do some thinking bout that one. my head says save it all my heart says take the opportunity and spoil them for once!

It is amazing how many families ask for money for a holiday when the case is at an end. It is the one thing you should not ask for. There is no way the judge ruling the settlement will allow it. It is usual to get the price of a bicycle or something like a playstation. The money is not a lotto win for the parents, it is not intended to support their lifestyle. The court does not want a situation where the child turns 18 and the money which might have paid for college was squandered on a long forgotten holiday.

amdublin

Milk & Honey wrote: »

It is amazing how many families ask for money for a holiday when the case is at an end. It is the one thing you should not ask for. There is no way the judge ruling the settlement will allow it. It is usual to get the price of a bicycle or something like a playstation. The money is not a lotto win for the parents, it is not intended to support their lifestyle. The court does not want a situation where the child turns 18 and the money which might have paid for college was squandered on a long forgotten holiday.

You were the one who said to ask for money for a present

Who are you to judge that a bike is a better present for a child than a holiday to Disneyland.

Interestingly enough some psychologists say holidays that create memories are better to spend your money on than objects like cars - memories being more valuable than possessions after time passes.

ResearchWill

amdublin wrote: »

You were the one who said to ask for money for a present

Who are you to judge that a bike is a better present for a child than a holiday to Disneyland.

Interestingly enough some psychologists say holidays that create memories are better to spend your money on than objects like cars - memories being more valuable than possessions after time passes.

The reason judges have a problem with holidays is as follows. If the child's money is being used to pay for the whole holiday for the whole family that's unfair on that child and is a decision to be left to the child when they turn 18. If on the other hand the child's money is only paying for the child's portion of the holiday then that is also unfair in that the family can afford the holiday but is dipping into the child's money when it is not necessary.

A judge might well allow a child to spend some of the money on a holiday if it is for the child alone. An example is the school is arranging a once in a life time opportunity visit to the US includes stuff an ordinary holiday would not say a visit to the white house and a meet ang greet with President. Say the family could never in a million years afford this then the court may very well say yes.

The court has two things it will consider the first is the money for the sole use of the child and two is it something that will be of use for the child. My own view is that payments out should only be used in limited and rare circumstances. Examples if a child is now in a wheelchair then payments out to purchase a adapted car or payments to cover the building of an extension to facilitate the child, also payments to cover special arrangements for holidays that is say the extra costs of the holiday because the child is in a wheelchair or to cover medical costs while on holidays etc.

My own personal view is that standard family holidays play stations etc should not be paid for not because the child won't like then but because it is the child's money and the child should be allowed to spend it when he or she is an adult. If they want to blow it then that's fine it their money.

Milk & Honey

amdublin wrote: »

You were the one who said to ask for money for a present

Who are you to judge that a bike is a better present for a child than a holiday to Disneyland.

Interestingly enough some psychologists say holidays that create memories are better to spend your money on than objects like cars - memories being more valuable than possessions after time passes.

It is likely that money there will be a suggestion that a present be bought from the money. A holiday is for an entire family and the cost is likely to exceed what the judge will have in mind. If a judge is asked for money for a holiday there is a possibility that there will be no money given at all.
There is not going to be any time in the court for a debate on the benefits of holidays. The o/p might well be asked to nominate a present at the time of the ruling and have only a few seconds to think.
It is better to be prepared. An appropriate request will be granted, one the judge does not agree with, will not.

happywithlife

wow thread got a bit active after i last posted.
just to clarify i was only thinking of the holiday after someone else put the idea of a 'present' in my mind.
tbh both the kids are young yet and don't need laptops etc. they already have every kind of wheeled bike/trike/tractor and scooter going...
the only reason i thought of disneyland is we are unlikey to affod any kind of holiday in the near future and this is one that my daughter, like all kids her age, is simply obessed with. i agree with whomever said that this would be the kind of stuff that makes great childhood memories.
we have never been on holiday and both mine and my husbands passports expired years ago, having last been used 9 years ago :eek:
we were too busy during the 'boom' years looking for work, saving for our home, buying our trusted ole t***o car
looks like i'll be going with my head so and investing the lot for a dismissal (but greatly appreciated) college 'fund'/pot.