What Is A Structured Settlement For A Minor

Structured settlements are considered ideal for ensuring that an underage child s cash settlement is preserved and spent appropriately.

What is a structured settlement for a minor. A structured settlement does operate in this way. Numerous options provide steady income throughout the minor s life ensuring living expenses education and. Structured settlements relieve the burden expense and risk of money management avoiding what can be agonizing investment decisions unpredictable investment results and ongoing management fees that have the potential to eat away at earnings on your child s or minor ward s settlement. Structured settlements reduce the risk that anyone will embezzle misuse or withhold large sums of money belonging to the injured claimant.

Please seek the advice of a qualified professional before making financial decisions. The child and his or her parents know where the money is and in case of an emergency medical bill related to the original injury settlement the court in its discretion can approve a disbursement of the money and it can be withdrawn from the bank. It is a good idea to check with the court for any particular practices followed by that court in approving minors settlements. Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults.

Settlements involving minors introduction. A structured settlement is one of the safest financial tools out there. Special needs trusts and other options. Under the laws of virtually all states now you may not take the funds from a large settlement usually over 5 000 on behalf of your minor child and invest it yourself.

Choosing a structured settlement for a minor may also speed up court approval because this arrangement is designed to protect minors interests. Other payment options for minors exist including trusts and guardianship accounts. The key difference between an adult owning a structured settlement and a minor owning one is control. This is set by state law and is the topic of this article.

Court approval is required for all settlements involving minors no matter how small the sum. Structured settlements are regulated by insurance companies. Structured settlement annuity for minors structured settlements have become more popular as the preferred option because they help the preservation of the financial security of the minor payment arrangement and options are nearly unlimited when utilizing a structured settlement. Structured settlements can provide payments timed to.

Structured settlements for minors.