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NebraskaLB341109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Nebraska Statutory Thresholds for Settlements Involving Minors Act

Sponsored By: Bob Hallstrom

Signed by Governor

Judiciary Committee

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Parents can settle minor claims to $40,000

The law lets a person with legal custody settle a minor’s claim without county court approval. This applies only if no conservator or guardian ad litem is appointed, the claim (excluding medical reimbursements, liens, reasonable attorney fees, and suit costs) is $40,000 or less, payment is by cash, check, draft, direct deposit, or an annuity, and the custodian signs an affidavit saying the child is fully paid or more money cannot be obtained. A compliant settlement is binding on the minor like an adult’s signature. A minor is someone under age 19. You can still ask the county court to appoint a guardian or conservator and approve the settlement.

Good-faith protections in minor settlements

People, insurers, and banks that act in good faith under this law are protected from later legal claims by the minor about the settled funds after transfer. Anyone who settles a minor’s claim in good faith is also shielded. These protections apply when they followed the Act’s procedures.

Where and when minor money is held

The law sets where settlement money goes and limits withdrawals. If an attorney represents the minor and payment is cash, check, draft, or direct deposit, money goes to the attorney trust account, then into a Nebraska UTMA account for the child, with notice of the deposit. If no attorney, those payments go straight into a UTMA account. If paid by buying an annuity, payment goes to the annuity company with the child as the only beneficiary. If the child is a ward of the state, payments go into a DHHS trust subaccount that earns interest, with notice to the child. Money can be taken out only by court order, by the UTMA custodian, when the child turns 19, or after the child’s death.

Attorneys must keep settlement affidavits

If you are an attorney for the person settling a minor’s claim, you must keep the affidavit or verified statement in your file. Keep it for four years after the minor turns 21. This duty applies only when you represent the settling person.

Sponsors & Cosponsors

Sponsor

  • Bob Hallstrom

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 156 • No: 0

legislature vote • 4/3/2025

Final Reading

Yes: 47 • No: 0 • Other: 2

legislature vote • 2/26/2025

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • 2/26/2025

Vote

Yes: 35 • No: 0 • Other: 14

legislature vote • Unknown

Vote

Yes: 35 • No: 0 • Other: 14

Actions Timeline

  1. Approved by Governor on April 7, 2025

    4/7/2025legislature

  2. Presented to Governor on April 3, 2025

    4/3/2025legislature

  3. President/Speaker signed

    4/3/2025legislature

  4. Passed on Final Reading 47-0-2

    4/3/2025legislature

  5. Placed on Final Reading

    3/19/2025legislature

  6. Advanced to Enrollment and Review for Engrossment

    3/11/2025legislature

  7. Placed on Select File

    3/4/2025legislature

  8. Advanced to Enrollment and Review Initial

    2/26/2025legislature

  9. Judiciary AM176 adopted

    2/26/2025legislature

  10. Judiciary AM176 filed

    2/10/2025legislature

  11. Placed on General File with AM176

    2/10/2025legislature

  12. Notice of hearing for February 05, 2025

    1/28/2025legislature

  13. Referred to Judiciary Committee

    1/21/2025legislature

  14. Date of introduction

    1/16/2025legislature

Bill Text

  • Introduced

    1/16/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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