SPR RULE 98.16W
                   ESTATES--GUARDIANSHIP--SETTLEMENT
             OF CLAIMS OF MINORS AND INCAPACITATED PERSONS


    (a) Approval of Settlement Required. In every settlement of a claim,
whether or not filed in court, involving the beneficial interest of an
unemancipated minor or a person determined to be disabled or incapacitated
under RCW 11.88, the court shall determine the adequacy of the proposed
settlement on behalf of such affected person and reject or approve it. If
a suit for recovery on behalf of the affected person has been previously
maintained, then the petition shall be filed in that county, or if no such
suit exists, then in the county where the affected person resides, unless
either court orders otherwise.

    (b) Petition. The petition for approval of settlement on behalf of the
affected person shall contain, as a minimum and to the full extent known:

    (1) the affected person's full name and date of birth;

    (2) the general identification and relationship of others having
claims or potential claims arising from the same matters and identity of their counsel;

    (3) the description and amount of all liens, subrogation or
reimbursement claims, fees, bills, costs or expenses connected with the
affected person's claim;

    (4) the description and amount of all liens, reimbursements, fees,
costs or expenses requested to be paid from the settlement funds to be
deposited with the court (or the maximum claimed for reimbursement if any
item is being disputed or negotiated further), including a columnar
listing of all amounts to be received, all amounts to be paid or the
maximum claimed and concluding with the net amount of money or other
property remaining for the affected person.

    (c) Appointment, Role and Termination of the Settlement Guardian ad
Litem; Exceptions to Appointment.

    (1) Upon filing of the petition, the court shall appoint a Settlement
Guardian ad Litem to assist the court in determining the adequacy of the
proposed settlement. The Settlement Guardian ad Litem shall conduct an
investigation and file a written report with the court with a
recommendation regarding approval and final disposition within 45 days of
appointment or such other time as the court may order. The court, if
appropriate under existing law, may order that all or part of the report
and contents shall be confidential or sealed. Upon filing of the report
and appearing at hearings as may be required, the Settlement Guardian ad
Litem is exonerated from further duties unless otherwise ordered by the court.

    (2) The court may dispense with the appointment of the Settlement
Guardian ad Litem if by written finding the court determines a guardian ad
litem, a guardian, or limited guardian has been previously appointed or if
the court affirmatively finds that the affected person is represented by
independent counsel, so long as the guardian ad litem, guardian, limited
guardian, or independent counsel has the qualifications which would be
required for a Settlement Guardian ad Litem and neither has nor represents
interests in conflict with those of the affected person which would not be
allowed for a Settlement guardian ad Litem. Independent counsel's fee
interest in the claim, if allowed by the Rules of Professional Conduct, is
not a disqualifying interest. If a Settlement Guardian ad Litem is not
required, the independent counsel, guardian ad litem, guardian or limited
guardian shall file the report.

    (d) Qualifications of Settlement Guardian ad Litem. The Settlement
Guardian ad Litem shall be an attorney with at least five years of
pertinent legal experience and such other qualifications as the court may
require. The Settlement Guardian ad Litem shall neither have nor represent
any interest in conflict with the affected person, including but not
limited to the conflicting interests of parents or others legally
responsible for medical care of the affected person.

    (e) Report of Settlement Guardian ad Litem. The report of the
Settlement Guardian ad Litem or other person authorized above shall
include a description, in depth appropriate to the magnitude of injuries
and settlement, of at least:

    (1) the background of the appointment and qualifications of the writer
including any relationship with involved parents, guardians, insurers or attorneys;

    (2) a description of the investigation conducted, the persons
interviewed and the documents reviewed, if any;

    (3) a description of the incident and the affected person's potential
legal claims;

    (4) a description of the affected person's injuries, general
treatment, diagnosis and prognosis attaching a recent supporting medical
report or office record;

    (5) a discussion of the damages potentially recoverable including
identification of all special damages;

    (6) a discussion of the potential liability of all persons and entities;

    (7) an identification of other insurance or collateral sources for
payment of any bills or expenses;

    (8) A discussion and recommendation regarding any lien, subrogation or
reimbursement claims, including any suggested retention in an attorney's
trust account of the full amount claimed until the final resolution of such claim;

    (9) an identification of all other claims, specifically including any
claims held by other family members;

    (10) a discussion of any proposed apportionment of claim proceeds
among family members or unrelated claimants, if any;

    (11) a discussion and recommendation regarding the proposed settlement
form, documents and amounts;

    (12) a discussion and recommendation regarding the expenses and fees
for which payment is requested;

    (13) a discussion and recommendation regarding the requested
disposition of net proceeds;

    (14) a statement of time spent, expenditures made and the fees and
costs requested by the Settlement Guardian ad Litem;

    (15) a discussion and recommendation regarding the presence of the
affected person and the Settlement Guardian ad Litem at any court hearings
on the Petition;

    (16) a statement as to whether the Petition has been submitted for
approval in any other jurisdiction.

    (f) Hearing. At the time the petition for approval of the settlement
is heard, the allowance and taxation of all fees, costs, and other charges
incident to the settlement shall be considered and disposed of by the
court. The court by local rule or by specific direction, may require or
waive the presence of the affected person or the Settlement guardian ad Litem.

    (g) Attorney's Fees and Costs. Any attorney claiming fees, costs or
other charges incident to representation of the affected person, from the
claim proceeds or otherwise, shall file an affidavit or declaration under
RCW 9A.72.085 in support thereof. Copies of any written fee agreements
must be attached to the affidavit or declaration.

    (h) Deposit in Court and Disbursements. Except for any structured
portion of a settlement, the total judgment or total settlement shall be
paid into the registry of the court, or as otherwise ordered by the court.
All sums deductible therefrom, including costs, attorney's fees, hospital
and medical expenses, and any other expense, shall be paid upon approval
of the court.

    (i) Form for Payment of Remaining Funds. Checks for funds payable to
the affected person may be made out by the clerk jointly to the depository
bank, trust company, or insured financial institution and to the
independent attorney for the affected person, guardian or limited
guardian, or trustee, and deposit shall be made to the trust or into a
blocked account for the affected person with provision that withdrawals
cannot be made except as provided in the trust instrument or as ordered by
the court. A deposit receipt to that effect must timely be filed with the
court by the payee.

    (j) Control and Orders for Remaining Funds. In calculating the amount
remaining from a structured settlement, if the settlement required court
approval only because the affected person was an unemancipated minor, then
only the payments received and to be received before attaining majority
age are counted.  All orders directing funds to a blocked account should
recite that the funds are payable upon further order of the court or to
the affected person at his or her age of majority, which date should be
specified. Upon approval of settlement and payment of all authorized fees,
bills and expenses, the court shall order one of the following actions:

    (1) $25,000 or Less. If the money or the value of other property
remaining after deduction for all approved fees, bills and expenses is
$25,000 or less, the court shall require that:

    (A) the money be deposited in a bank or trust company or be invested
in an account in an insured financial institution for the benefit of the
affected person, subject to withdrawal only upon the order of the court as
a part of the original proceeding; or

    (B) the money or property be paid to a duly appointed and qualified
guardian or limited guardian; or

    (C) the money be placed in trust, subject to the conditions set forth
in subsection (3).

    (2) More than $25,000. If the money or the value of other property
remaining after deduction for all approved fees, bills and expenses
exceeds $25,000, the court in the order or judgment shall:

    (A) if there is an existing or newly created guardian or limited
guardian who approves, require that the money be deposited in a bank or
trust company or be invested in an account in an insured financial
institution for the benefit of the affected person, subject to withdrawal
only upon the order of the court handling the guardianship or limited guardianship;

    (B) if there is no guardian or limited guardian of the affected person
or no approval under (A), the court in the order or judgment shall require
that either a guardian or limited guardian be appointed, or

    (C) the money or other property be placed in trust, subject to the
conditions set forth in subsection (3).

    (3) Conditions for Use of Trust. A trust established pursuant to this
rule under subsection (1) or (2) must meet the following requirements:

    (A) The selection of the trustee(s) and the terms of the trust shall
be subject to the court's approval;

    (B) No family member of the affected person, or other potential
residual beneficiary of the trust, shall be approved by the court as a
sole trustee;

    (C) A bonded or insured fiduciary shall be designated as a sole
trustee or as co-trustee with principal responsibility for financial
management of the trust estate;

    (D) The fiduciary shall prepare an annual statement of income,
expenses, current assets, and fees charged; shall deliver the statement to
any co-trustees, the beneficiary, and the beneficiary's personal
representative; and shall present the statement for review and approval by
the court having jurisdiction over the beneficiary;

    (E) No family member or potential residual beneficiary who serves as a
co-trustee shall exercise discretionary authority over individual
expenditures from the trust that would bring direct or indirect benefit to
that individual; and

    (F) The administration of the trust shall be subject to the continuing
jurisdiction of the appropriate court.

    (k) Bond. Unless all funds are to be placed in a blocked account or
court approved trust, sufficient bond shall be required for guardians and
limited guardians to the extent required by guardianship law.


131 Wn.2d 1105 effective April 8, 1997