Virginia Senate Bill SB64

Virginia 2022 Regular Session

• Introduced: 1/3/22
• Refer: 1/3/22
• Report Pass: 1/19/22
• Engrossed: 1/24/22
• Refer: 2/22/22
• Report Pass: 2/25/22
• Enrolled: 3/3/22
• Chaptered: 4/11/22
• Passed: 4/11/22

Caption

Proceeds of compromise agreements; investment in college savings trust accounts for minors.

Impact

The enactment of SB64 will have a significant impact on state laws pertaining to the approval and distribution of financial settlements for individuals under disability, particularly minors. By mandating that settlements be placed into college savings trust accounts, the bill not only safeguards the funds until the minor is of age but also aligns financial settlements with educational goals. Given the specificity of the investment options permitted, this measure capitalizes on the benefits associated with saving for higher education.

Summary

SB64 amends the Code of Virginia to ensure that proceeds from compromise agreements involve parties under a disability are directed into proper channels such as college savings trust accounts for minors. The primary purpose of this bill is to protect the interests of minors by requiring that any financial settlements made in their favor are managed wisely and with court oversight. This approach aims to promote fiscal responsibility, particularly in cases where the minors are beneficiaries of settlements resulting from wrongful acts or negligence.

Sentiment

Sentiment surrounding SB64 appears to be generally positive among advocates for minors' rights and financial literacy. Supporters believe that the bill promotes prudent financial management and ensures that minors receive the financial support they may need for future educational expenses. There is a recognition that while these measures may increase administrative burden on the courts, the long-term benefits for the minor beneficiaries justify these considerations.

Contention

While SB64 is primarily viewed positively, there may be contention surrounding the increased role of court oversight in financial matters for minors. Opponents could argue that this could complicate the process for families trying to access funds quickly, especially in urgent situations. Additionally, concerns may exist regarding the limitations on how parents and guardians can manage these funds, leading to debates around parental rights and responsibilities.