Existing law provides that if an unemancipated minor has a disputed claim for money against a third person, the parent or guardian of the minor has the right to compromise the claim by filing a verified petition in writing with the appropriate district court. The petition must provide an apportionment of the total proceeds of the proposed compromise, including all fees and expenses owed from the total proceeds. If the petition is approved by the district court, with the proceeds of the compromise, the parent or guardian must establish a blocked financial investment for the benefit of the minor, which means a savings account, a certificate of deposit, a United States savings bond, a fixed or variable annuity contract, or another reliable investment that is approved by the court. (NRS 41.200) This bill provides that: (1) if the net proceeds of the compromise are $2,500 or less, according to the required apportionment of fees and expenses in the petition, the parent or guardian is not required to establish a blocked financial investment and may use the proceeds at his or her discretion for the benefit of the minor, in compliance with any terms or conditions ordered by the court; and (2) the court may, at its discretion, close the case. This bill also revises the definition of the term “blocked financial investment” to allow a savings account to be established in any financial institution, as opposed to only a depository institution.

Statutes affected:
As Introduced: 41.200
As Enrolled: 41.200