Can You Get a Lawsuit Advance on a Child's Injury Case?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

A judge has to approve the settlement

Other states have their own approval procedures, and the court handling the case decides which apply. The approval hearing is an extra step at the end of the case; our post-settlement funding page covers the waiting period after a deal is reached.

Where the child’s money goes

The approval order also says where the money ends up, and that is the part that matters most for any advance.

• California. The court may order the money deposited in an insured account or a single-premium deferred annuity “subject to withdrawal only upon the authorization of the court.” Other options include a guardianship, a custodian under the Uniform Transfers to Minors Act, a court-approved trust the child can revoke at 18, a special needs trust after a hearing, or, when the balance is $5,000 or less, payment to a parent without bond (Prob. Code 3611).
• Texas. A court may manage the recovery by decree, through a bonded manager, or by investment; money a next friend invests in certain insured deposits or savings plans “may not be withdrawn from the financial institution without an order of the court.” A court-created trust for a minor who is not disabled under federal SSI rules ends at the earliest of death, an age stated in the trust, or the 25th birthday (Prop. Code ch. 142).
• Washington. The court decides how net funds are held, for example in a blocked account or a trust, and withdrawals “cannot be made except as provided in the trust instrument or as ordered by the court” (SPR 98.16W).

A pre-settlement advance is repaid from what the case pays. When the child’s share goes straight into a blocked account or trust, no money passes through a parent’s hands to repay a funder, and the parent cannot simply sign the child’s recovery over. We found no statute in these three states that expressly bans funding against a minor’s claim, and no court decision applying these rules to a funding contract. California’s funding law defines a consumer as a natural person who has a pending legal claim and lives in California (Bus. & Prof. Code 6250(b)), and it does not address minors.

The court also sees what is owed. Washington requires the petition to list “all liens, subrogation or reimbursement claims, fees, bills, costs or expenses” and to end with the net amount left for the child, and the guardian ad litem must identify other claims, including those held by family members (SPR 98.16W). A funder’s claim against the recovery would be in front of the judge.

The parent’s own claim

When a child is hurt, the parents may have losses of their own. In California, parents acting together may sue for injury to their unmarried minor child caused by someone else’s wrongful act or neglect (Code Civ. Proc. 376). Washington lets a parent who regularly supported a minor child recover the child’s “health care expenses,” along with “loss of the child’s services” and “loss of the child’s financial support” (RCW 4.24.010).

California’s approval statute also orders payment of “reasonable expenses, medical or otherwise,” including reimbursement to a parent, out of the money for the minor (Prob. Code 3601). So medical bills a parent paid can come back to the parent through the court’s order. How a state splits the parent’s claim from the child’s, and what Texas law allows here, is a question for the lawyer handling the case.

Any advance a parent considers would rest on that parent’s own claim, after the medical liens on the child’s treatment are paid. Medi-Cal, Apple Health and private plans often cover children’s care and may seek repayment; see funding and medical liens. If a seriously injured child receives or may need SSI or Medicaid, a special needs trust may hold the money; see SSI and Medicaid.

What to ask before you sign

• Whose claim is the advance based on: yours as a parent, or your child’s? Ask the funder to say so in writing.
• Does the contract reach any money that will go into a blocked account or trust?
• Will the contract be listed in the court petition, and how will the judge see it?
• How much of your own claim is likely to remain after the medical liens are paid?
• Does the contract have the warning signs listed on our contract red flags page?
• Have you looked at other help first? See alternatives to pre-settlement funding.

State-by-state funding laws are in the laws by state table, and the overview is on the lawsuit cash advance main page.

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.