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Terecia78

Lawyer being a power of attorney

5 posts in this topic

My daughter is a minor when the lawsuit was filed. She won the case by settling. In Michigan she can't receive any money until she turns 18 years old. However I am the legal guardian but her attorney want me to sign power of attorney over to Him so that he can sign the checks and put her remaining funds in an annuity account. What if I don't sign over power, can I cash the check or will the defendant withhold funds.

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You didn't say what kind of lawsuit it was but, generally when a minor plaintiff is awarded damages, that money must be set aside in a trust or annuity to be turned over in full to the minor when they reach majority.  The checks are not for a guardian to spend at all.

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The court will usually appoint a guardian to administer the funds.  If the court apponts you as guardian, you will be required to set up an account where the funds will be deposited.  You will almost certainly be required to purchase a bond (insurance policy) guaranteeing that you will not waste the child's funds.  The funds will not belong to you and you cannot "cash the check". When the child reaches the age of majority you would be required to turn the money over to the child or account for any funds not available at that time.

 

I don't agree the attorney should be appointed guardian but, depending on your background, it might be safer.

 

 

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19 hours ago, Terecia78 said:

She won the case by settling.

 

Settling and winning are very different things.

 

 

19 hours ago, Terecia78 said:

What if I don't sign over power, can I cash the check or will the defendant withhold funds.

 

16 hours ago, Terecia78 said:

If I don't turn over power will she still get her money?

 

We have no way of knowing.  You'll need to discuss this with your daughter's attorney.  To some extent, this should have been addressed ahead of time in the written agreement you (should have) signed with the lawyer when you hired him to represent your daughter.

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