Structured Settlements Definition

Ensuring money for a childs future. Structured settlements are considered ideal for ensuring that an underage childs cash settlement is preserved and spent appropriately.

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Structured settlements and minors.

Structured settlement minor. As the years go by this allows for compounding interest to increase the account value. Cases are often settled which award a significant amount of money to a minor in the form of a series of payments to cover the living expenses of a child. Structured settlements for minors parents can file a personal injury lawsuit on behalf of children that were injured or otherwise negatively affected by an incident and the courts may award children financial compensation in the form of a structured settlement annuity. When a minor receives compensation in the form of a structured settlement the court does everything in its power to ensure the proper use of funds while maximizing opportunity for the child. Because they were minors and not legally able to accept payments on their own the money was given to their guardian or parent. Structured settlements for minors. Adults arent the only ones awarded structured settlements. Designing structured settlements for minors is a critical part of the settlement process. Structured settlements for minors options. Federal and state laws assign courts the responsibility of determining both the fairness of the monetary settlement and how the awarded funds can be spent. Structured settlements are usually awarded to minor children to make sure the childs best interests are taken into account. How structured settlements work in the case of minors before structured settlements minors involved in personal injury accident and other case types with cash awards were generally granted lump sum payments. 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 childs or minor wards settlement. Structured settlements can provide payments timed to. Under the laws of virtually all states now you may not take the funds from a large settlement usually over 5000 on behalf of your minor child and invest it yourself.

Additional benefits of structured settlements for minors include. Structured settlements provide a long term stream of tax free income for a period of time or for life. Structured settlements can help prevent parents or guardians from using the childs money for their own personal needs rather than for the childs needs. Structured settlements reduce the risk that anyone will embezzle misuse or withhold large sums of money belonging to the injured claimant. Benefits of structured settlements for minors. Structured settlements are not taxed as income despite earning money on interest.