The bill authorizes parents and guardians to enter into binding settlements on behalf of their minor children without the need for court approval, provided certain conditions are met. Specifically, the bill raises the monetary limits for payments or property delivered to minors from $5,000 to $25,000 per annum, and from $3,000 to $25,000 for property belonging to a minor without a guardian. It establishes that a parent, guardian, or conservator can settle claims for minors if no guardian has been appointed, the minor is not emancipated, and the settlement amount does not exceed $25,000. The funds must be used for the benefit of the minor, and the agreement will be binding upon the minor once signed by the parent or guardian.

Additionally, the bill provides a cause of action for minors against their parents, guardians, or conservators if they fail to manage or apply the funds appropriately, make false statements regarding the claim's value, or do not comply with the settlement requirements. This legislation aims to streamline the process for settling claims involving minors while ensuring that their interests are protected. The act is set to take effect on July 1, 2024.

Statutes affected:
Introduced: 3-3-108, 14-2-202