Short Answer

In North Carolina, you can accept and deposit your children’s settlements without giving up your own claim, but do it by the book. First, have a judge approve each minor’s settlement and release. Then deposit the children’s funds as the court directs (often with the Clerk of Superior Court or in a restricted account). Do not sign your own release or cash your own check if you are rejecting your offer; confirm in writing that only the children’s claims are resolved.

Understanding the Problem

In North Carolina, can you, as the parent/guardian, deposit your minor children’s settlement checks without accidentally releasing your own personal injury claim? You received separate checks for you and your two minor children from the insurer.

Apply the Law

Under North Carolina law, a minor’s personal injury claim cannot be finally compromised without court approval. A judge’s order should approve the settlement as in the child’s best interest and specify how the money must be held. After approval, the funds are typically deposited with the Clerk of Superior Court or placed in a restricted account or UTMA custodial account, depending on amount and circumstances. Your personal claim is separate. Accepting the children’s settlements and depositing their funds does not waive your own claim if you do not sign your own release or negotiate your own check.

Key Requirements

• Get court approval for each child’s settlement: A superior court judge must approve the minor’s settlement and release before funds are negotiated.
• Keep releases and payments separate: Sign only the children’s court-approved release(s). Do not sign or cash your own check if you reject your offer; tell the adjuster in writing you accept only for the children.
• Deposit funds as ordered: Follow the order’s directions, commonly deposit with the Clerk of Superior Court (for amounts within statutory limits), a restricted bank account (AOC-E-901M), or a UTMA custodial account if appropriate.
• Use funds only for the child’s benefit: Withdrawals typically require Clerk approval and documentation; routine parental support is not paid from the child’s funds.
• Plan for access at majority: Clerk-held funds release at age 18; UTMA custodial accounts release at 21.

What the Statutes Say

• N.C. Gen. Stat. § 1-402 (Judgments affecting minors) - Judge approval is required for dispositions affecting a minor’s rights.
• N.C. Gen. Stat. § 7A-111 (Clerk’s receipt of minor’s funds) - Clerk may receive and hold certain minor funds and control disbursements.
• N.C. Gen. Stat. § 33A-14 (UTMA expenditures) - Custodian may spend custodial property for a minor’s benefit.
• N.C. Gen. Stat. § 35A-1252 (Guardian of minor’s estate powers) - Funds are managed prudently for the minor’s exclusive benefit.

Analysis

Apply the Rule to the Facts: Because the insurer issued separate checks for you and each child, you can accept the children’s settlements while keeping your personal claim open. Obtain a judge’s approval of the minors’ settlements and sign only those releases. Ask the insurer to reissue the children’s checks as directed by the order (for example, payable to the Clerk of Superior Court for each child) and deposit accordingly. Do not sign your own release or cash your own check if you intend to reject your offer.

Process & Timing

1. Who files: The parent/guardian (as next friend) for each child. Where: Superior Court in the North Carolina county with proper venue. What: Motion/Petition to Approve Minor Settlement with proposed Order; include receipts/allocation and proposed deposit instructions. When: Before endorsing or depositing the children’s checks.
2. After entry of the judge’s order, coordinate with the insurer to issue checks as the order directs (for example, payable to “Clerk of Superior Court for the benefit of [Child]”) or to a restricted bank account using Receipt and Agreement (AOC‑E‑901M). The Clerk opens an estate “E” file for clerk-held funds and invests per law; counties vary, so allow several days to a few weeks.
3. Send the adjuster written confirmation that you accept only the minors’ settlements and reject your personal check. Keep copies of the court order, deposit receipts, and limited releases for your records.

Exceptions & Pitfalls

• Do not endorse or deposit a minor’s check before court approval; it can jeopardize approval and release terms.
• Avoid global release language. Ensure the children’s releases are limited to their claims and do not reference your personal claim.
• Use of funds: routine parental support typically cannot come from the child’s funds; expect to provide receipts and seek Clerk approval for withdrawals.
• Amount/structure: larger recoveries or ongoing management needs may require a guardian of the estate; local Clerk practices vary on restricted accounts versus clerk-held funds.
• Check payee issues: if a check is not payable as required (e.g., to the Clerk or a restricted account), ask the insurer to reissue per the court order before depositing.

Talk to a Personal Injury Attorney

If you're dealing with separate settlements for your children and want to keep your own personal injury claim open, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

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.