Not everyone has the capacity to manage an injury settlement on their own. If you or someone you love falls into this category, you may be wondering whether a guardian can manage a personal injury settlement in Aurora.
When someone receives a settlement for an injury, it’s important that the money be used responsibly. An Aurora personal injury lawyer from Charlie Therman Injury & Accident Lawyers, P.C., can help determine whether guardianship is appropriate in your personal injury case.
Can a Guardian Manage an Injury Settlement in Aurora?
Yes. In Aurora, a guardian can be appointed to manage an injury settlement if the court determines it’s necessary to protect the injured person’s interests. The process generally works as follows:
- Petition for guardianship: A petition is filed in the Kane County Circuit Court requesting that a guardian be appointed for the injured person.
- Court review: The judge examines the settlement amount, the injured person’s capacity, and whether guardianship is appropriate.
- Appointment of guardian: If approved, the court designates a suitable guardian (often a parent, family member, or trusted third party).
- Establishment of a guardianship estate: The settlement funds are placed under the guardian’s control (subject to court supervision).
- Court oversight and reporting: The guardian must submit regular financial reports showing how the funds are spent and invested.
The guardian can only use the funds in ways the court authorizes. This may include paying for medical care, rehabilitation, education, housing, and other needs directly related to the injured person’s recovery and quality of life.
What Constitutes Guardianship in Aurora?
Guardianship is a legal arrangement where one person (the guardian) is granted authority by the court to make decisions for another person (the ward). In the context of personal injury settlements, this usually involves handling financial matters for someone who cannot do so themselves. There are two main types of guardianship in Illinois:
- Guardian of the person: This individual makes personal and medical decisions for the ward.
- Guardian of the estate: This individual manages the ward’s finances, including settlements, property, and other assets.
In a personal injury case, a guardian of the estate is typically appointed to handle settlement funds. This ensures that the money is used appropriately and not mismanaged or exploited.
When a Guardian May Be Required
Not every personal injury settlement requires a guardian. However, courts in Aurora often require guardianship under certain circumstances, such as if:
- The injured person is a minor: Children under 18 cannot legally manage their own finances in Illinois.
- The injured adult has a disability: Cognitive impairments, brain injuries, or mental health conditions can limit financial decision-making ability.
- The settlement amount is significant: When large settlements are awarded, courts often attempt to put in place the proper oversight.
- There are concerns about potential misuse of funds: If the court or attorneys believe the injured party might be vulnerable to exploitation, guardianship may be required.
Responsibilities of a Guardian Managing Settlement Funds
Guardians have strict duties under Illinois law. They act as fiduciaries, meaning they must always act in the best interests of the injured person. Typical responsibilities include:
- Managing funds prudently: The guardian must deposit settlement money into a restricted account and invest it safely.
- Covering approved expenses: Funds can only be spent on the ward’s needs, such as therapy, equipment, or daily living costs.
- Keeping detailed records: Every withdrawal, payment, and expense must be documented and reported to the court.
- Filing annual reports: The guardian submits an accounting of all financial activities each year for court review.
- Seeking court approval for major expenses: Large purchases or investments typically require prior court authorization.
The court maintains oversight to ensure that the money lasts as long as needed and is used exclusively for the injured person’s benefit. Misuse of funds can lead to removal or legal penalties for the guardian.
How Guardianship Protects Settlement Funds
Guardianship serves as a safeguard against poor financial decisions, exploitation, or fraud. Injured individuals (especially minors or those with traumatic brain injuries) may not fully understand the long-term value of their settlement. By appointing a guardian:
- The funds are kept in controlled, court-supervised accounts.
- Large disbursements must be justified and approved.
- The guardian must prove that all spending benefits the injured person.
This protection can make a significant difference when it comes to ensuring that settlement money is available for future medical care, therapy, and other long-term expenses.
What Happens When the Ward Reaches Adulthood or Regains Capacity?
If the ward is a minor, the guardianship usually ends when they turn 18. At that point, the guardian must transfer the remaining funds directly to the individual.
If the injured person was an adult with a temporary disability (such as a traumatic brain injury that improves over time), the court can also terminate guardianship once capacity is restored. The individual would then regain control over their finances.
The court must approve the transition, and final accountings are required to ensure that all funds were properly managed.
Speak to a Personal Injury Attorney in Aurora
When a personal injury settlement involves a minor or an adult who cannot manage money on their own, courts in Aurora often require guardianship to protect the injured person’s future. An Aurora personal injury lawyer from Therman Law can review your case, help determine whether guardianship is necessary, and guide you through the rest of the legal process.
Book a free consultation to discuss your situation today.
