Detailed answer — how early access to a minor’s settlement can work in Hawaii

Short answer: Possibly, but you usually must get the court’s approval. Hawaii law treats most settlements for injuries or other claims by minors as subject to protective procedures so the court can safeguard the child’s best interests. That means you generally can’t simply withdraw settlement funds for college or medical bills without a formal process.

Common pathways to access funds before age 18

1. Court‑approved settlement and plan: When a minor’s claim is being resolved, the parties commonly file a petition asking the court to approve the settlement and to direct how the money will be handled. The court can approve a lump‑sum settlement and order that funds be placed into a blocked bank account, a trust, or a custodial account with restrictions on withdrawal. The petition should explain whether and when funds can be used for the child’s benefit (including medical care or education).
2. Special minor’s trust (or blocked account): The court may require funds be held in a trust or a “blocked” account under court supervision. The judge can authorize periodic or one‑time withdrawals from that account for specific needs such as medical treatment or education expenses if the petitioner asks the court and shows the withdrawal is in the child’s best interest.
3. Structured settlement: For personal injury cases, parties can arrange a structured settlement that pays the minor (via the parent/guardian) in periodic payments. Structured settlements can be tailored to provide payments at certain ages or for specific purposes. Once in place, a structured settlement annuity typically cannot be changed without court or insurer consent.
4. Custodial accounts under transfer laws: If funds are given under a custodial statute (for example, a UTMA/UGMA style arrangement in other states), the custodian can use the money for the child’s benefit (education, medical care, support) before the child reaches the age of majority. Whether Hawaii uses a UTMA/UGMA regime or how it applies to lawsuit proceeds will depend on how the settlement is structured and what the court orders. For statutory text and official code materials, see the Hawaii Revised Statutes at the state legislature site: https://www.capitol.hawaii.gov/hrscurrent/.
5. Guardianship/conservatorship: In some situations a parent or another adult may be appointed as guardian or conservator of the child’s assets. A court‑appointed fiduciary must manage the funds in the child’s best interest and may petition the court for authority to pay for education or medical needs before the child turns 18.

How a parent can ask for early access

1. Work with the child’s attorney (or hire one if none exists). The attorney will draft and file a petition to approve the settlement and to request any early disbursements the parent seeks.
2. Show proof the requested use is for the child’s benefit (invoices, school cost estimates, medical bills, a plan of how remaining funds will be preserved).
3. The court will evaluate whether the withdrawal is reasonable and in the child’s best interest, and may hold a hearing with notice to the insurer, opposing party, and sometimes the child’s guardian ad litem or the Department of the Attorney General’s office if required.
4. If approved, the court will enter an order authorizing the trustee, bank, or insurer to disburse the funds for the approved purpose or to place funds in a trust subject to conditions set by the court.

Practical examples (hypothetical)

Example A — Medical care: A 14‑year‑old settles a personal injury case for $100,000. The petition asks the court to approve placing $80,000 into a blocked trust and to allow $5,000 immediately to pay ongoing medical and rehabilitation expenses. The court may require documentation of the medical costs and then authorize a limited withdrawal.

Example B — College costs: A parent asks the court to release $20,000 from a minor settlement at age 16 to prepay tuition for a college program that begins when the child turns 17. The court will weigh whether the prepayment is in the child’s best interest and whether the remaining funds adequately protect the child’s future needs. If satisfied, the judge can authorize the disbursement specifically for tuition.

What courts consider when deciding early access

• Whether the requested withdrawal is necessary for the child’s health, education, support, or maintenance.
• If a less‑intrusive option exists (for example, limited payment rather than full release of funds).
• Whether the funds will still adequately protect the child’s future financial needs.
• Input from any guardian ad litem, the child’s attorney, or other court‑appointed advocates.

Where to file and who decides

Minor settlement approvals and guardianship matters are handled by Hawaii’s circuit courts (probate/guardianship division) or sometimes family court depending on the case structure. For court forms, procedures, and local rules, see the Hawaii Judiciary self‑help pages on guardianship and probate: https://www.courts.state.hi.us/self-help/guardianship and the main Hawaii Judiciary site: https://www.courts.state.hi.us/.

Costs and timeline

Expect attorney fees, court filing fees, and possibly costs for a guardian ad litem or for establishing a trust or structured settlement. Court approvals can take weeks to months depending on complexity and the court’s schedule.

Bottom line

You can sometimes access a minor’s settlement early for medical care or education in Hawaii, but you must follow court procedures. The judge will approve only disbursements that serve the child’s best interest and protect the child’s future needs. Work with an attorney who knows Hawaii’s procedures for minor settlements and guardianship/estate matters.

Helpful Hints

• Start early: settle paperwork and file petitions well before tuition or medical payment deadlines.
• Gather documentation: invoices, college acceptance letters, treatment plans, and cost estimates strengthen the petition.
• Ask the court for narrowly tailored releases (specific amounts and purposes) rather than blanket access to all funds.
• Consider a structured settlement or trust to protect funds and provide predictable payments for future needs.
• Be transparent with the court: show how remaining funds will be preserved for the child’s later needs.
• Consult a Hawaii attorney experienced in minor settlements, probate, or guardianship to prepare the petition and represent the child’s interests.
• Use official resources: Hawaii Revised Statutes (current code) is available at the Hawaii State Legislature site: https://www.capitol.hawaii.gov/hrscurrent/, and the Hawaii Judiciary self‑help pages are at https://www.courts.state.hi.us/self-help/guardianship.