A Practical Shortcut for Smaller Payments
Not every payment owed to a child requires a court-supervised conservatorship. When the amount is relatively modest, Arizona provides a simpler path. A.R.S. 14-5103 allows anyone with a duty to pay or deliver money or personal property to a minor to do so in amounts up to $10,000 per year without going through the court system.
Any person under a duty to pay or deliver money or personal property to a minor, including monies related to the settlement of a civil claim, may perform this duty, in amounts not exceeding ten thousand dollars per annum, by paying or delivering the money or property to any of the following: 1. The minor, if the minor is married. 2. Any person having the care and custody of the minor and with whom the minor resides. 3. The guardian of the minor. 4. A financial institution incident to a deposit in a federally insured savings account in the sole name of the minor and giving notice of the deposit to the minor.
A.R.S. § 14-5103(A)The statute covers civil settlements, insurance proceeds, inheritances, and any other obligation. The person receiving the funds on behalf of the minor is required to protect and preserve them, using the money only for the minor's support and education when resources are limited.
When This Shortcut Does Not Apply
If a conservator has already been appointed for the minor, or if conservatorship proceedings are pending, this simplified process is off the table. In those situations, payments must go through the conservator.
This section does not apply if the person making payment or delivery has actual knowledge that a conservator has been appointed or proceedings for appointment of a conservator of the estate of the minor are pending.
A.R.S. § 14-5103(B)Once the minor reaches the age of majority, any remaining balance must be turned over to them. The minor then has three years to request an accounting of how the funds were used. For families handling modest amounts owed to a child, this statute provides a straightforward alternative to formal court proceedings.
