Settlements involving minors introduction.
What is a structured settlement for a minor.
Litigation involving someone under the legal age imposes requirements as to how any settlement is to be achieved and distributed.
A structured settlement is one of the safest financial tools out there.
Special needs trusts and other options.
Numerous options provide steady income throughout the minor s life ensuring living expenses education and.
The key difference between an adult owning a structured settlement and a minor owning one is control.
Choosing a structured settlement for a minor may also speed up court approval because this arrangement is designed to protect minors interests.
Structured settlements reduce the risk that anyone will embezzle misuse or withhold large sums of money belonging to the injured claimant.
Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults.
Court approval is required for all settlements involving minors no matter how small the sum.
A structured settlement does operate in this way.
Structured settlements can provide payments timed to.
Structured settlements are regulated by insurance companies.
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 can be used to finance college educations by providing a certain sum of income each year that the child would attend college.
This is set by state law and is the topic of this article.
It is a good idea to check with the court for any particular practices followed by that court in approving minors settlements.
It is usually arranged to begin when the minor reaches the age of majority which can differ depending on the state you live in or sooner if the proceeds are paid into a trust account.
Please seek the advice of a qualified professional before making financial decisions.
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 for minors.
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.
