Guardians to Prepare Minors for Settlements

Summary#

The Responsible Implementation of Settlement Education Amendment Act of 2026 would amend the District of Columbia Code section on settlements involving minors. It would require certain court-appointed guardians to prepare a minor for managing settlement funds; the stated goal is to reduce the risk of financial mismanagement after guardianship ends. The bill is introduced and is not law.

  • If the net value of money and property due to a minor from a settlement action exceeds $3,000, the bill’s text requires a guardian of the minor’s estate, except where another cited law provides otherwise.
  • No later than 12 months before the minor reaches the age of majority, the guardian must ensure the minor completes a financial literacy course offered or approved by the Department of Insurance, Securities and Banking.
  • The guardian must also ensure the minor is referred to a certified financial counselor and has at least one documented contact with that counselor.
  • The guardian must give the minor a written, plain-language summary of the assets held and the expected distribution when guardianship ends.
  • The guardian must file proof of compliance with the court. The court may waive a requirement for good cause, including if the minor cannot be located. The court may withhold up to 2% of the guardian’s commission compensation until the proof is filed, but compliance is not a condition of the minor receiving the assets.

What it means for you#

  • Minors with qualifying settlement funds: They would have to complete the course, have a documented contact with a certified financial counselor, and receive the written summary before guardianship ends. The bill does not make completing these steps a condition of receiving their assets.
  • Guardians of those minors: They would have to arrange and document the steps and include proof in the final account filed with the court. A court could waive a requirement for good cause.
  • Department of Insurance, Securities and Banking: The course must be offered or approved by the Department. The bill does not specify how many courses must be available.
  • People with inheritances: Although the introductory material refers to inheritances, the operative amendment appears limited to funds or property received through a settlement action. It does not clearly impose these duties for inheritances.
  • Other residents: The bill does not directly change taxes, benefits, or the rights of people who are not covered by this guardianship provision.

Money#

No cost estimate is available in the supplied material.

  • The bill adopts a fiscal impact statement from a committee report, but that report and its cost figures were not supplied.
  • The bill could require administrative work by guardians and the Department, but it gives no staffing or funding amount.
  • A court may withhold up to 2% of a guardian’s commission compensation until required documentation is filed. This is not a fine against the minor’s settlement assets.

What is unclear#

  • The current version of the amended law was not supplied, so the bill’s changes to existing guardianship rules—including the $3,000 threshold—could not be verified.
  • The bill does not explain how courses will be approved or whether the Department must provide enough courses.
  • It does not define “certified financial counselor” or say who pays for counseling.
  • It does not set a process or deadline for arranging the course and counseling beyond the overall 12-month timing requirement.
  • The introductory description mentions inheritances, but the operative text refers to settlement actions. It is unclear whether inheritances are meant to be covered.

Case for#

  • A young person whose settlement assets have been managed by a guardian may benefit from learning basic financial skills before taking control of those assets.
  • The course topics are specified at a minimum: budgeting, saving, consumer credit, and identifying predatory financial products.
  • A counselor contact and plain-language summary could help the minor understand the assets and expected payment.
  • The court would receive documentation, and it could waive requirements when there is good cause.

Case against#

  • The bill requires guardians to arrange several steps, but does not explain how to ensure a suitable course or counselor is available in time.
  • The bill does not say who covers any course or counseling costs.
  • The court’s ability to waive requirements may help in difficult cases, but the bill does not explain how guardians should request a waiver or what other reasons would qualify.
  • A possible mismatch between the introductory description and the operative text leaves unclear whether inheritance cases are intended to be included.