Nevada § 41.200 - Compromise by parent or guardian of claim by minor against third person; requirements of court petition; establishment of blocked financial investment for proceeds of compromise under certain circumstances; no fees to be charged in proceedings

§ 41.200. Compromise by parent or guardian of claim by minor against third person; requirements of court petition; establishment of blocked financial investment for proceeds of compromise under certain circumstances; no fees to be charged in proceedings

1. If an unemancipated minor has a disputed claim for money against a third person,

either parent, or if the parents of the minor are living separate and apart, then

the custodial parent, or if no custody award has been made, the parent with whom the

minor is living, or if a general guardian or guardian of the estate of the minor has

been appointed, then that guardian, has the right to compromise the claim. Such a compromise is not effective until it is approved by the district court of

the county where the minor resides, or if the minor is not a resident of the State

of Nevada, then by the district court of the county where the claim was incurred,

upon a verified petition in writing, regularly filed with the court. 2. The petition must set forth: (a) The name, age and residence of the minor; (b) The facts which bring the minor within the purview of this section, including: (1) The circumstances which make it a disputed claim for money; (2) The name of the third person against whom the claim is made; and (3) If the claim is the result of an accident or motor vehicle crash, the date, place

and facts of the accident or motor vehicle crash; (c) The names and residence of the parents or the legal guardian of the minor; (d) The name and residence of the person or persons having physical custody or control

of the minor; (e) The name and residence of the petitioner and the relationship of the petitioner

to the minor; (f) The total amount of the proceeds of the proposed compromise and the apportionment

of those proceeds, including the amount to be used for: (1) Attorney's fees and whether the attorney's fees are fixed or contingent fees,

and if the attorney's fees are contingent fees the percentage of the proceeds to be

paid as attorney's fees; (2) Medical expenses; and (3) Other expenses, and whether these fees and expenses are to be deducted before or after the calculation

of any contingency fee; (g) Whether the petitioner believes the acceptance of this compromise is in the best

interest of the minor; and (h) That the petitioner has been advised and understands that acceptance of the compromise

will bar the minor from seeking further relief from the third person offering the

compromise. 3. If the claim involves a personal injury suffered by the minor, the petitioner must

submit all relevant medical and health care records to the court at the compromise

hearing. The records must include documentation of: (a) The injury, prognosis, treatment and progress of recovery of the minor; and (b) The amount of medical expenses incurred to date, the nature and amount of medical

expenses which have been paid and by whom, any amount owing for medical expenses and

an estimate of the amount of medical expenses which may be incurred in the future. 4. If the court approves the compromise of the claim of the minor, the court must

direct the money to be paid to a parent or guardian of the minor, with or without

the filing of any bond, or it must require a general guardian or guardian ad litem

to be appointed and the money to be paid to the guardian or guardian ad litem, with

or without a bond, as the court, in its discretion, deems to be in the best interests

of the minor. 5. Upon receipt or distribution of the total amount of the proceeds of the compromise

as described in paragraph (f) of subsection 2, and after deducting from the total

proceeds the amount of fees and expenses owed or paid pursuant to the apportionment

described in paragraph (f) of subsection 2: (a) If the net proceeds of the compromise are more than $2,500, the parent or guardian

to whom the proceeds of the compromise are ordered to be paid shall establish a blocked

financial investment for the benefit of the minor with the proceeds of the compromise. Money may be obtained from the blocked financial investment only pursuant to subsection

6. Within 30 days after receiving the proceeds of the compromise, the parent or guardian

shall file with the court proof that the blocked financial investment has been established. If the balance of the investment is more than $10,000, the parent, guardian or person

in charge of managing the investment shall annually file with the court a verified

report detailing the activities of the investment during the previous 12 months. If the balance of the investment is $10,000 or less, the court may order the parent,

guardian or person in charge of managing the investment to file such periodic verified

reports as the court deems appropriate. The court may hold a hearing on a verified report only if it deems a hearing necessary

to receive an explanation of the activities of the investment. (b) If the net proceeds of the compromise are $2,500 or less, the parent or guardian

to whom the proceeds of the compromise are ordered to be paid may use the proceeds

at his or her discretion for the benefit of the minor, in compliance with any terms

or conditions ordered by the court. The court may, at its discretion, close the case. 6. The beneficiary of a blocked financial investment may obtain control of or money

from the investment: (a) By an order of the court which held the compromise hearing; or (b) By certification of the court which held the compromise hearing that the beneficiary

has reached the age of 18 years, at which time control of the investment must be transferred

to the beneficiary or the investment must be closed and the money distributed to the

beneficiary. 7. The clerk of the district court shall not charge any fee for filing a petition

for leave to compromise or for placing the petition upon the calendar to be heard

by the court. 8. As used in this section, “ blocked financial investment ” means a savings account established in a financial institution in this State, a

certificate of deposit, a United States savings bond, a fixed or variable annuity

contract, or another reliable investment that is approved by the court.