This bill authorizes parents and guardians to enter into binding settlements on behalf of their minor children without the need for court approval or the establishment of a guardianship or conservatorship, provided certain conditions are met. Specifically, the total amount of the settlement must not exceed twenty-five thousand dollars ($25,000.00), and the parent or guardian must attest that they have made a reasonable inquiry into the minor's claim. The bill also increases the value of property that can be delivered on a child's behalf from five thousand dollars ($5,000.00) to twenty-five thousand dollars ($25,000.00) and allows for the payment of money or property not exceeding this amount to a parent entitled to custody of the minor.

Additionally, the bill establishes that a settlement entered into under these provisions will be binding on the minor and will have the same legal effect as if the minor were a competent adult. It also provides a cause of action for minors against parents, guardians, or conservators who fail to manage or apply funds for the minor's benefit or who do not comply with the requirements of the settlement process. The act is set to take effect on July 1, 2025.

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