The Settlement of Actions Involving Minor Children Act of 2025 aims to reform the current mandatory guardianship system for settlements awarded to minor children. The bill introduces a framework that allows for judicial review of settlements with a net recovery of $10,000 or more, while also permitting alternative financial arrangements such as structured settlements or trusts, provided they are in the child's best interest. The legislation mandates that settlement proceeds be deposited into a blocked account, restricting access until the child turns 18, with exceptions for medical and educational expenses. Additionally, it maintains judicial discretion to appoint guardians when deemed necessary for the child's welfare.

Key amendments include the renaming of the relevant section to emphasize court approval for certain settlement amounts and payments, and the introduction of new sections detailing the requirements for withdrawal of funds and the role of trustees. The bill repeals previous provisions that may have been less beneficial to minors, thereby streamlining the process and ensuring that more of the settlement proceeds are preserved for the child's future benefit. Overall, the legislation seeks to reduce costs associated with guardianship while enhancing the financial security of minor children receiving settlements.