To petition to withdraw funds from a blocked account, you file a written request with the same court that ordered the funds restricted, attend a short hearing, and, if the judge approves, take a certified copy of the signed order to the bank holding the account. The process is quick when the beneficiary has reached the age of majority. Early withdrawals for a minor still under age require a concrete reason and documents to back it up.
The steps below cover accounts holding settlement or inheritance money for a minor. Blocked accounts for an incapacitated adult under a conservatorship follow the same basic process but often require extra material, such as a current medical evaluation or proof that the expense fits the court-approved conservatorship plan.
Reasons the Court Will Release Funds
The Beneficiary Has Reached the Age of Majority
The cleanest reason to petition is that the minor has grown up. In most states the age of majority is 18. Alabama and Nebraska set it at 19, and Mississippi defines a minor as anyone under 21 for most legal purposes, though the age drops to 18 for contracts involving property.1Legal Information Institute. Age of Majority2Justia Law. Mississippi Code 1-3-27 – Minor Some original orders release the funds automatically once the beneficiary reaches the applicable age, without a new petition. If your order doesn’t say that, you still need to petition, but judges approve these routinely once age and identity are confirmed.
Early Withdrawal Based on Need
Withdrawals before the beneficiary reaches the age of majority require a compelling reason. Judges look for extraordinary needs or emergencies beyond what a parent is ordinarily expected to provide. Routine housing, groceries, and clothing don’t qualify because those are parental obligations regardless of any settlement.
Categories that tend to qualify:
- Medical expenses not covered by insurance, including surgeries, therapy, adaptive equipment, or ongoing treatment tied to the original injury.
- Tuition for a private school or specialized program that meets a documented educational need.
- A vehicle for an older teen who needs it to reach school or work, particularly where public transit isn’t available.
- Accessibility improvements or other home modifications tied to a disability or medical condition.
Specificity wins. “We need money for living expenses” almost always fails. “The child needs $4,200 for orthodontic treatment not covered by our dental plan, and here is the treatment plan from the orthodontist” has a real chance.
Documents to Gather Before You Start
Incomplete paperwork is the most common reason petitions get delayed or sent back. Pull everything together first.
You need the case number from the original proceeding that created the blocked account, the names of all parties, and the county where the case was filed. You also need the financial institution’s name, the branch address where the account is held, the account number, and the current balance. Call the bank ahead of time for an up-to-date balance statement, since judges want exact figures.
Your court will have its own forms, usually titled something like “Petition to Withdraw Funds from Blocked Account” with a corresponding proposed “Order” for the judge to sign. Check your local superior court or probate court’s website for the correct forms. Don’t assume another jurisdiction’s forms will work in your courthouse.
Supporting documents depend on your reason:
- Age of majority: a certified copy of the beneficiary’s birth certificate and a government-issued photo ID.
- Medical expenses: itemized bills, the insurer’s explanation of benefits showing what isn’t covered, and a letter from the treating physician if the treatment is ongoing.
- Education: a tuition invoice, enrollment confirmation, and documentation showing why this particular program is necessary.
- Vehicle purchase: a signed purchase agreement or dealer quote, plus an explanation of why the child needs the vehicle.
Filing the Petition
Once the petition, the proposed order, and the supporting documents are ready, make at least two copies of the entire packet. The court keeps the original, you keep a copy, and you may need a third to serve on other parties.
File the original with the clerk at the courthouse where the original case was heard. You pay a filing fee when you submit. Fees vary, so call the clerk’s office or check the court’s website first. If you can’t afford the fee, most courts offer waivers for people receiving public benefits or below certain income thresholds. Ask the clerk for a fee waiver application when you file.
The clerk stamps your documents with the filing date and either assigns a hearing date on the spot or mails a notice. Hearings are typically scheduled a few weeks out, longer in busy jurisdictions. For a genuine emergency, ask the clerk whether the court has an expedited or ex parte procedure for urgent blocked account withdrawals.
You may also need to serve a copy of the petition on other interested parties. This commonly includes the other parent and, in many jurisdictions, the minor themselves if they are over 14. The court’s local rules spell out who must be served and how. A self-help center at the courthouse can help if you’re unsure.
What Happens at the Hearing
Blocked account hearings are short. You’ll spend more time waiting for your case to be called than speaking to the judge. When your turn comes, the judge reviews the petition and supporting documents and may ask a few questions. For an age-of-majority withdrawal, the judge confirms the beneficiary’s age and identity, and that is usually the extent of it. For need-based withdrawals, the judge wants to understand why the expense is necessary, why regular support can’t cover it, and whether the amount is reasonable.
Bring the original supporting documents, not just copies. The judge or clerk may want to examine them. If the beneficiary is old enough and available, having them present can help, especially for age-of-majority petitions where the judge may want to confirm identity in person.
If the judge approves the petition, they sign the proposed order. Before leaving the courthouse, get a certified copy from the clerk’s office. Clerks typically charge a small fee. That certified order is what the bank needs to release the money.
If the Court Denies Your Petition
Denial isn’t the end. It means the judge found a problem, usually insufficient documentation, a purpose that looks more like a parental expense than a child’s need, or a request for more money than the stated purpose requires. Judges typically explain what was lacking. You can refile with stronger documentation or a revised request that addresses the concerns. There’s no limit on how many times you can petition, but repeatedly filing weak requests wastes everyone’s time.
After a denial on a need-based request, get more specific. If the judge wanted proof that insurance won’t cover a medical expense, get a written denial letter from the insurer. If the amount seemed excessive, get a second quote.
Getting the Funds Released at the Bank
Take the certified copy of the signed order to the bank branch where the blocked account is held. The bank verifies the order and processes the release. Depending on how the order is written and the nature of the expense, funds may be issued as a check payable to the beneficiary, paid directly to a provider like a school or medical facility, or transferred into an unrestricted account in the former minor’s name.
Banks sometimes take a few business days to process the release, especially if the order needs review by the institution’s legal department. If you’re working against a tuition or procedure deadline, plan for that processing time.
Tax Consequences to Keep in Mind
If the account holds proceeds from a personal injury settlement, the principal is generally not taxable. Federal law excludes damages received for physical injuries or physical sickness from gross income, whether the money came through a verdict or a negotiated settlement.3Office of the Law Revision Counsel. 26 USC 104 – Compensation for Injuries or Sickness Punitive damages are the exception and are fully taxable. Settlements for non-physical claims such as defamation or contract disputes don’t qualify for the exclusion, and the full amount could be taxable. The settlement agreement usually specifies what the damages were for.
Interest and investment earnings on the account are taxable as unearned income even when the underlying settlement isn’t. For 2025, a child’s first $1,350 of unearned income is sheltered by the standard deduction. The next $1,350 is taxed at the child’s own rate, usually 10%. Anything above $2,700 is taxed at the parent’s marginal rate.4Internal Revenue Service. Topic No. 553, Tax on a Childs Investment and Other Unearned Income (Kiddie Tax)
If the account has been earning interest for years, those earnings may trigger a filing requirement even before you petition for withdrawal. A parent can elect to report a child’s interest and dividend income on the parent’s return if the child’s total unearned income is under $13,500, using IRS Form 8814. Otherwise, the child needs their own return with Form 8615 attached.4Internal Revenue Service. Topic No. 553, Tax on a Childs Investment and Other Unearned Income (Kiddie Tax) A brief consultation with a tax professional can head off an unexpected bill or IRS notice.
Whether You Need a Lawyer
You aren’t required to hire an attorney. Many people handle straightforward age-of-majority withdrawals on their own, especially where the courthouse has a self-help center. The process is designed to be accessible.
An attorney can be worth the cost for need-based withdrawals where the amount is large or the justification is complicated, for petitions already denied once, or for blocked accounts involving an incapacitated adult under a conservatorship. Some family law attorneys handle these petitions on a flat fee rather than hourly, so ask about pricing before assuming you can’t afford it.