Minor Beneficiaries and Court Approval in Austin, TX Chapter 142 Trusts and Registry Funds

The share belongs to the child, not the household

Section 71.010 has the jury award an amount proportionate to the injury resulting from the death and divide that award into shares among the entitled individuals living at the time. A minor child's share is that child's property. A surviving parent who is also a beneficiary holds a share of their own, and the potential for that overlap to become a conflict is why courts appoint a guardian ad litem or require a next friend arrangement before approving anything.

A bonded manager, at double the value

Section 142.002 of the Property Code permits the court, in a suit where a minor or incapacitated person without a legal guardian is represented by a next friend or appointed guardian ad litem, to authorize that person to take possession of the recovery. Possession may not be taken until a bond is executed as principal in an amount at least double the value of the property, or at least equal to the value where a solvent authorized surety company signs, payable to the county judge. Section 142.001 governs the decree that authorizes the arrangement.

Where the money may be placed

Section 142.004 lists permitted investments where funds are not otherwise managed under the chapter, including a higher education savings plan or prepaid tuition program under chapter 54 of the Education Code, an ABLE account under that chapter's Texas Achieving a Better Life Experience program, and interest-bearing time deposits in a Texas financial institution insured by the Federal Deposit Insurance Corporation. The list is a constraint rather than a menu of suggestions.

The section 142.005 trust and its end date

Section 142.005 allows a court of record, on application and a finding that a trust serves the beneficiary's best interests, to direct the clerk to deliver funds to a financial institution as trustee. Where the beneficiary is a minor not considered disabled under the federal provisions the statute cites, the trust terminates on the beneficiary's death, on an age stated in the trust, or on the beneficiary's 25th birthday, whichever occurs first. Subsection (l) caps reimbursement from the trust for reasonable attorney's fees incurred in bringing the petition at $1,000. Subsections (m) and (n) allow a non-institutional trustee where principal is $50,000 or less only on a best-interests finding, and impose additional findings above $50,000.

Funds held in the court registry

Where a share sits in the court's registry, the county charges for holding it. The District Clerk's fee schedule effective January 1, 2026 lists a court registry administrative fee of 5 percent capped at $50 on funds not earning interest under Local Government Code section 117.055, and 10 percent of interest accrued on funds that do earn interest under section 117.054. The clerk's civil fee page publishes the current schedule.

The Travis County step families do not expect

Withdrawing a minor's registry funds later has a specific local requirement. Under Local Rule 7.8 of the civil district courts, an applicant requesting withdrawal of funds held in the registry for a minor who has not reached legal age must bring to the court, with the motion and proposed order, a Summary of Minor's Bank Account obtained from the District Clerk reflecting the account status and indicating previous withdrawals. A motion filed without that summary is not ready to be heard, which is a common source of delay years after a case has closed.

Approval, mediation and the central docket

Because Local Rule 13.3(a) automatically refers jury-docket cases to pre-trial mediation, minor allocation issues are frequently addressed in a mediated settlement that is then presented for approval. Under Local Rule 1.3 the case number in the style does not identify the judge who will hear the matter, since the county's courts operate a central docket with hearings assigned to available judges. The civil courts sit at 1700 Guadalupe Street.

The limits of this page

The material above describes statutory and local procedure for minors' recoveries. It is general information and not legal advice, and it decides nothing about any child's share or any proposed settlement. Those questions belong with the attorney who advertises on this site.