Which action is required when compromising an infant claim?

• A. Court approval of the settlement and deposit of the funds into a special account
• B. Immediate withdrawal of funds by the attorney as a fee
• C. No court involvement is necessary for infant settlements
• D. Funds may be placed in the attorney's general operating account

Answer: (A)

When a minor’s claim is settled, the protection of the child’s interests is the priority, so the settlement must be approved by the court and the funds must be placed in a court-supervised, restricted account. This ensures the amount is fair to the infant and cannot be diverted or spent improperly before the child reaches adulthood or until the court permits a designated use. The court reviews the settlement, may appoint a guardian ad litem or represent the infant, and oversees how the proceeds are held and eventually disbursed.

This is why court approval and depositing the funds into a special account are essential. It prevents improper withdrawal or use of the money and guarantees a secure mechanism for preserving the child’s proceeds for future needs.

Immediate withdrawal by the attorney as a fee would breach this protection, since fees from a minor’s settlement are subject to court review. There is also no requirement that no court involvement exists for infant settlements, and placing funds in the attorney’s general operating account bypasses the safeguards designed to protect the child’s money.