MS Statutory Thresholds for Settlements Involving Minors Act; create with affidavit requirements.
The bill's standardization of procedures for settling minor's claims is expected to simplify the process for legal custodians. It intends to offer clear guidelines on how the funds from settlements must be managed, including that they should be placed in federally insured restricted savings accounts that earn interest. This ensures that the funds remain secure for the minor until they reach adulthood, thereby promoting financial responsibility and safeguarding their interests until they can make their own decisions.
House Bill 864, also known as the Mississippi Statutory Thresholds for Settlements Involving Minors Act, establishes regulations surrounding settlement agreements involving minors. The act allows a person with legal custody of a minor, or a parent or guardian, to enter into a settlement agreement without court approval under certain conditions. Specifically, it applies when the total settlement amount is $25,000 or less, excluding medical expenses and legal fees, ensuring that minors are adequately compensated in such agreements.
There are implications for liability protection as well, where individuals acting in good faith on behalf of minors in a settlement will not be held liable for decisions made regarding those settlements. While these provisions aim to encourage settlement agreements, concerns have been voiced about the potential for misuse without adequate checks, as the binding nature of agreements without court oversight may lead to situations where minors do not receive fair compensation. Thus, while the bill aims to provide clarity and protection, its implementation must be monitored to prevent possible exploitation.