Short Answer

Usually, no. In North Carolina, a minor’s settlement money belongs to the child and is restricted until age 18. You can ask the Clerk of Superior Court to approve a withdrawal before then, but only if the parents or other responsible adults cannot afford the expense and the request is for a necessity (like needed medical care or appropriate education). The clerk typically pays the provider directly and requires documentation.

Understanding the Problem

You are a North Carolina parent or guardian asking whether you can use some of your child’s personal injury settlement for college or medical expenses before the child turns 18. The decision point is whether the Clerk of Superior Court can authorize a withdrawal now, based on your financial ability and the nature of the expense.

Apply the Law

North Carolina law treats a child’s settlement funds as the child’s property. These funds are often deposited with the Clerk of Superior Court under a court order or in a restricted account. Before age 18, the clerk may approve a disbursement only if (1) those responsible for the child’s support cannot afford the expense and (2) the expense is a necessity for the child, which can include education and medical care. The clerk applies a best-interest standard, prefers paying providers directly, and requires receipts. If a guardian of the estate is appointed, the guardian can receive and manage funds subject to fiduciary duties, bond, and court oversight.

Key Requirements

• Financial inability: Parents or others responsible for support must be unable to pay the expense from their own resources.
• Necessity: The expense must be necessary for the child’s maintenance, support, health, or education (e.g., medical treatment, essential schooling costs).
• Best interest of the child: Any withdrawal must serve the child’s best interest; routine living costs the parents can cover are typically denied.
• Payment method and proof: The clerk usually orders payment directly to the service provider and requires receipts or paid invoices.
• Process control: A verified petition is filed with the Clerk of Superior Court; decisions are case-by-case and may involve a brief hearing.
• Age 18 release: At 18 (or emancipation), the funds are released to the child; the clerk cannot continue to hold or restrict them absent specific authority.

What the Statutes Say

• North Carolina Gen. Stat. § 7A-111 (Funds for minors) — Allows the clerk to receive and, in limited cases, disburse minor’s funds for necessities when parents cannot provide.
• North Carolina Gen. Stat. § 7A-112 (Investment by clerk) — Governs deposit and investment of funds held by the clerk.
• North Carolina Gen. Stat. § 35A-1252 (Guardian of the estate powers) — Authorizes a guardian of the estate to take possession of and manage a minor’s property subject to fiduciary duties.
• North Carolina Gen. Stat. § 33A-6 (UTMA transfers by fiduciary) — Provides an alternative structure for holding a minor’s property when authorized.

Analysis

Apply the Rule to the Facts: With no specific facts, here are two brief illustrations. If your child needs surgery and you cannot cover the deductible or co-pays, you may petition the clerk for a disbursement, showing financial inability and attaching the medical bill; the clerk may order payment directly to the provider. If tuition is due for a program appropriate to your child’s education and your finances are insufficient, you may request payment of that semester’s bill to the school with documentation; if you can afford it, the request will likely be denied.

Process & Timing

1. Who files: A parent, guardian of the person, or caregiver. Where: Clerk of Superior Court in the North Carolina county where the child resides. What: A verified petition requesting a disbursement from the minor’s funds that identifies the account/order holding the funds, explains financial inability, and attaches invoices/estimates. When: File as soon as the need arises and before the bill’s due date or the child turns 18.
2. The clerk reviews the petition, may request additional proof, and may set a short hearing. Timeframes vary by county; expect days to a few weeks depending on court volume.
3. If granted, the clerk enters an order and typically directs payment to the provider. You must submit receipts or proof of payment promptly after disbursement. If denied, you may consider alternatives such as a guardianship of the estate.

Exceptions & Pitfalls

• Requests are denied if parents can reasonably pay; the child’s funds do not replace a parent’s support duty.
• General living expenses without documentation usually fail; provide invoices and explain why the expense is necessary now.
• Ask for provider payment; cash to a parent is disfavored and requires strict proof and receipts.
• If a court order placed funds with the clerk in an amount over $50,000, the order may control disbursements; if silent, clerks commonly apply the same necessity and best-interest standards.
• Consider structure: a guardianship of the estate adds flexibility but requires bond, accountings, and court oversight; UTMA may be an option only if authorized.
• Expect investment and administrative practices when funds are held by the clerk; fees and documentation rules apply, and repeated requests face increasing scrutiny.

Talk to a Personal Injury Attorney

If you’re facing tuition or medical bills and need guidance on requesting an early withdrawal from a child’s settlement, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-313-2737.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney–client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.