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SC MINORS PROCEDURE
RECENT REVISIONS
The South Carolina Supreme Court, by Administrative Order (2011-07-26-01), recently revised -- of the South Carolina Code of Laws that relates to Minor Settlement Procedure. While it re-affirmed the scenario in which a conservator should be appointed and when such an appointment can be avoided, it also adds Section VIII which details the procedure for establishing Special Needs Trusts (SNT). This Order supersedes the Order of this Court dated July , providing for a uniform Minor Settlement Procedure. Some of the main points that the order highlights are: . When a structured settlement is over $,, but the minor will not receive more than $, per year during his or her minority, it is generally not appropriate to appoint a conservator. . Absent extraordinary circumstances, it is not appropriate to appoint a conservator when the minor will not receive any funds under a structured settlement until after the minor reaches adulthood. . The jurisdictional amount is determined by the present value of the structured settlement. The Order went on to define the Considerations for evaluating whether a SNT or a Pooled SNT is appropriate in a given case. The Court should consider all relevant factors, including, where appropriate, the following: - The amount of funds or other assets involved - Are there sufficient funds and/or other assets to justify the expense and efforts involved in creating a SNT? - What is the source and purpose of the funds and assets? - If the Trust Beneficiary is receiving Medicaid (but not SSI), has the SNT been pre-approved by (DHHS)? - Who is the proposed Trustee? - Does the SNT contain appropriate restrictions to ensure the funds or other assets are used for the benefit of the Trust Beneficiary and not for other family members?

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- If the SNT purchases a home or a vehicle for the Trust Beneficiary's benefit, should other family members reimburse the SNT for their use of those assets? Are family members providing care-giving services to the Trust Beneficiary? - Should Probate Court or other independent approval be required for Trust expenditures after the Trust is funded and operating? - Is bonding or other security required or appropriate for the Trustee? Also, should a SNT be appropriate it is always important to evaluate how the SNT will be funded. Often times a beneficiary can maximize their settlement and avoid costly management fees in the early years of the SNTs administration by allocating certain dollars to a structured settlement annuity to then make payments over time to the SNT. Should you want to review the order in full, you can find it here: http://www.sccourts.org/courtOrders/displayOrder.cfm?orderNo=---. Please let the experienced team at Forge Consulting, LLC help you through the Minor Settlement Procedure process. Every day, we focus on protecting your clients and ensuring that each settlement is in full compliance with all applicable laws. We look forward to hearing from and working with you on your next case.

Michael E. Gunn 1122 Lady Street Suite 705 Columbia SC 29201 O ce 803.233.3666 Fax 803.233.3100 mgunn@forgeconsulting.com