A recent change to Indiana law makes it easier for parents to access smaller settlements received on behalf of an injured child. Starting July 1, 2026, Indiana Code 29-3-3-1 increased the threshold from $10,000 to $25,000 for money or property that may be delivered for a minor without appointing a guardian, posting bond, or getting another court order.
For families handling the aftermath of a child injury claim, that is a meaningful change. In the right case, it can reduce delays, lower court-related burdens, and make settlement funds more accessible for the child’s support, use, and benefit.
What Changed in Indiana Code 29-3-3-1?
Before July 1, 2026, Indiana Code 29-3-3-1 allowed payment or delivery of a minor’s property without a guardianship only when the amount did not exceed $10,000. The 2026 amendment raised that amount to $25,000 and also allows delivery to a custodian for the benefit of the minor under the Indiana Uniform Transfers to Minors Act.
Under the amended law, a person holding money or property belonging to a minor in an amount not exceeding $25,000 may transfer it without the appointment of a guardian, giving bond, or another court order. The statute still requires that any person receiving the property apply it to the support, use, and benefit of the minor.
Why This Matters in Child Injury Cases
When a child is hurt in a car accident or another injury-causing event, settlement timing matters. Families often need to pay for school-related expenses, activities, transportation, counseling, or other needs that support the child’s recovery and daily life.
Under the old $10,000 threshold, more settlements required additional court involvement before parents could access the funds. That often meant more steps, more waiting, and less flexibility for families trying to make practical decisions for their child.
With the new $25,000 threshold, some families may now avoid the need for a separate guardianship of the property in cases where the settlement amount falls within the new limit. That can help certain minor injury settlements move more efficiently while still keeping the legal focus on the child’s best interests.
How the Old Process Could Create Delays
When the amount exceeded the old statutory threshold, courts often required additional protective steps before the funds could be delivered. Depending on the circumstances, that could involve guardianship-related proceedings or other court-approved arrangements for managing the child’s money.
That structure exists for an important reason: settlement money belongs to the child, not the parent. But for families dealing with moderate settlements, the lower threshold could create unnecessary friction when parents were simply trying to use the funds for the child’s benefit in a timely way.
What the New Law Allows
Beginning July 1, 2026, Indiana parents and caregivers may have a more practical path when a child’s settlement or property interest does not exceed $25,000. In those cases, the funds may be paid directly to a person having the care and custody of the minor with whom the minor resides, or to an appropriate custodian for the child’s benefit.
That means some families may be able to use funds more quickly for expenses that directly benefit the child, without first having to seek appointment as a guardian of the child’s property. The law still does not apply if a guardian has already been appointed or if guardianship proceedings are pending.
Court Approval Still Matters
This change does not mean every child injury settlement happens without court involvement. Indiana’s 2026 probate changes also clarify that when a minor has a disputed claim and no guardian has been appointed, the parents or another person with care and custody of the child may petition the court to compromise the claim, and the court must hold a hearing before approving that compromise.legiscan
If the court approves the settlement, it may direct payment under Indiana Code 29-3-3-1 or under a protective order. If those options do not apply, the court may still require appointment of a guardian and direct that the settlement be delivered to that guardian under terms the court sets.
What Parents Should Keep in Mind
Families should not assume that every settlement under $25,000 will work exactly the same way. The details can depend on the type of claim, whether liability is disputed, whether court approval is required, and whether another protective arrangement is more appropriate for the child.
A few key points matter:
- The settlement funds belong to the child.
- Anyone receiving the funds must use them for the child’s support, use, and benefit.
- Court approval may still be required to resolve the claim itself.
- Some cases may still call for a guardian, trust, or other protective structure.
How Keller & Keller Helps Indiana Families
At Keller & Keller, staying current on Indiana injury law is part of helping families make informed decisions after a child has been hurt. Changes like this one can affect how a settlement is handled, how quickly funds may be available, and what steps parents need to take to protect their child’s interests.
For parents dealing with a child injury claim after an Indiana car accident, understanding both the personal injury side and the guardianship side can make a real difference. The legal process is not only about recovering compensation. It is also about making sure that compensation is structured in a way that truly supports the child.
Talk to an Indiana Child Injury Lawyer
If your child was injured in an Indiana car accident, truck accident, or another serious incident, legal guidance can help you understand both the claim and the settlement process. An experienced Indiana personal injury lawyer can explain what court approval may be required, whether the new $25,000 rule applies, and how to pursue the best outcome for your child under current law.
Keller & Keller represents injured people across Indiana and closely follows changes in state law that affect families. To discuss a child injury case, call 1-800-2-KELLER and get the Keller Edge.
