Structured Settlements Definition

Structured settlements can help prevent parents or guardians from using the childs money for their own personal needs rather than for the childs needs. Payment arrangement and options are nearly unlimited when utilizing a structured settlement.

Structured Settlements What Is A Structured Settlement

Kansas Structured Settlement Protection Act

63 Best All About Structured Settlements Images In 2019

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. 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. 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 can provide payments timed to. 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. Benefits of structured settlements for minors. A structured settlement allows a personal injury claimant to obtain cash over a period of time rather than obtaining his settlement in a lump sum. 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 only apply to large personal injury cases usually involving policy limits settlements of at least 10000000. Structured settlements provide a long term stream of tax free income for a period of time or for life. Structured settlements are usually awarded to minor children to make sure the childs best interests are taken into account. Structured settlements started in the late 1970s and they are a big business. As the years go by this allows for compounding interest to increase the account value. Designing structured settlements for minors is a critical part of the settlement process. Adults arent the only ones awarded structured settlements. Structured settlements and minors.

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. 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 reduce the risk that anyone will embezzle misuse or withhold large sums of money belonging to the injured claimant. 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.