Protecting Your Child’s Recovery


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When perusing a personal injury claim for an injured child, parents often aren't sure of the best way to protect their child's money when they've won the case or accepted a settlement.

Structured Settlement

If the amount you recovered from the insurance company is fairly sizable, your lawyer may suggest a structured settlement. This involves an annuity purchased via a life insurance company. These kinds of plans are regulated by state governments and are effective at producing a return while guaranteeing that the child's money will be available when it comes time for him or her to collect. Typically, a fixed amount is paid to your child over several years, usually starting when your child turns 18. This can be convenient if your child wants to go to college.

Structure of Payments

There's quite a bit of flexibility when it comes to arranging the structure of the payments your child receives for his or her personal injury case. You can choose to receive part of the settlement as a lump sum when your child turns 18, followed by fixed monthly or annual payments. If your child's injuries left him or her with long-term disabilities, you may prefer to receive payments monthly to cover living expenses.

Advantages of Structured Settlements

A benefit of structured settlements is peace of mind. You may not be an investment expert and you're suffering the emotional trauma of your child's personal injury, so a structured settlement offers reassurance as you know exactly how much money your child will receive with the regular payments. Another advantage is that at the age of 18, a child becomes an adult and can claim their settlement money. However, at this age many young people can still be impulsive and inexperienced with budgeting. A structured plan helps remove the temptation that a lump sum payment would present for splurging.

Practical Realities

In less fortunate cases, a child's personal injuries may be so profound that they have to endure lifelong medical expenses or won't be able to work. These situations benefit a structured settlement since they offer guaranteed tax-free income and make the settlement stretch further than a lump-sum figure would.

Personal Injury Lawyer

If your child has been injured, talk to your lawyer at Clore Law about a structured settlement plan. Prior to accepting a settlement you need to decide if you want to retain the tax-free benefit. If you do choose a structured settlement, watch out for companies wanting to buy them with the lure of immediate cash without having to wait for scheduled payments. These may sound incredibly profitable – and they are – for their owners. However, a superior court judge has to approve the sale pursuant to state law. So wanting to buy a new car or contribute to your own living expenses will likely be turned down as a reason to sell the proceeds of your child's structured settlement. If your child has suffered a personal injury, contact a lawyer at 843.722.8070 for a consultation.

Contact Us

Clore Law Group welcomes your questions about any issues concerning a serious personal injury, car accident, medical malpractice, nursing home neglect, or business tort. If you have a viable claim, we’ll explain the legal process. Since consultations are always free, there’s no cost in learning your legal options.