Minn. R. agency 196, ch. 9500, COMMISSIONER'S CONSENT TO PATERNITY SUIT SETTLEMENTS, pt. 9500.1658

Current through Register Vol. 49, No. 20, November 12, 2024

Part 9500.1658 - STANDARDS USED BY COMMISSIONER TO DETERMINE WHETHER TO CONSENT TO A PROPOSED LUMP-SUM SETTLEMENT

Subpart 1.Standards.

The commissioner shall consent to a proposed lump-sum settlement only if the conditions of subparts 1a to 6 are met.

Subp. 1a.Parties.

Under Minnesota Statutes, section 257.60, when the child is a minor, the child and the commissioner must be made parties to the action. The court must appoint a general guardian or a guardian ad litem to represent the child.

Subp. 2.Admission of paternity.

The alleged father must admit paternity and either waive blood tests or the results of blood tests indicate a likelihood of more than 92 percent that the alleged father is the biological father of the child.

Subp. 3.Comparison of proposed lump-sum settlement to present value of periodic payments.

The proposed lump-sum settlement must be equal to or greater than the present value of periodic payments.

Subp. 4.Liability for past support and costs.

A provision must be made for a partial or full reimbursement consisting of the alleged father's liability for past support and costs. The alleged father's liability for past support and costs includes:

A. all or a proportion of the amount of assistance furnished the child during the two years immediately preceding the start of the paternity action under Minnesota Statutes, section 257.66, subdivision 4;

B. expenses of the mother's pregnancy and confinement under Minnesota Statutes, section 257.66, subdivision 3; and

C. all or a proportion of costs and fees detailed under Minnesota Statutes, section 257.69, subdivision 2.

If a reimbursement is to be made through payments to the local IV-D agency, provisions for income withholding shall be included in the proposed lump-sum settlement agreement under Minnesota Statutes, section 518A.53.

Subp. 5.Protection over lump-sum settlement amount.

A plan to invest the lump-sum settlement to meet the child's future needs and to prevent rapid depletion of the lump-sum settlement must be made part of the lump-sum settlement. The plan to invest the lump-sum settlement must include:

A. an agreement to deposit the lump-sum settlement amount in an interest bearing account with a rate of interest based on a United States Treasury obligation that matures on the date of the child's 18th birthday;

B. provisions for making periodic payments to the child until the child is 18 years of age;

C. provisions for making the periodic payments under item B to the public agency, if the child receives public assistance or becomes eligible to receive public assistance and rights to support are assigned under Minnesota Statutes, section 256.741;

D. the name of the depository that will hold and disburse the lump-sum settlement under this subpart;

E. the name of the person or agency designated to make decisions on managing the lump-sum settlement account; and

F. the amounts charged by the depository for the costs of administering the lump-sum settlement account.

Subp. 6.Medical benefits.

The lump-sum settlement must provide for maintenance of health and dental insurance for the child under Minnesota Statutes, section 518A.41.

Minn. R. agency 196, ch. 9500, COMMISSIONER'S CONSENT TO PATERNITY SUIT SETTLEMENTS, pt. 9500.1658

11 SR 957; L 1997 c 203 art 6 s 92; L 2005 c 164 s 29; L 2005 1Sp7 s 28; L 2006 c 280 s 46; 32 SR 565

Statutory Authority: MS s 257.60