Settlements involving Minors

Since a court must eventually approve a personal injury settlement of behalf of a minor or incompetent, as petitioned by his/her legal guardian, the final choice of funding vehicle(s) will be at the Judge's discretion. Among the choices are - cash, annuity, or some combination thereof. If cash is paid in a single lump sum in lieu of an annuity, most judges will require the settlement proceeds be deposited in a restricted account until the age of majority (age and rules vary by state law).

Fortunately, there is a better alternative than the restricted lump sum cash account that is widely preferred by most judges - the structured settlement annuity.

A Structured Settlement Annuity can address many of the issues that parents and guardians face when contemplating what may be in their child's best interest long-term.

The benefits in summary are:

• Structured annuities provide guaranteed payments that are exempt from tax.
• Structured annuities can provide guaranteed payments to fund college tuition and post-graduate expenses.
• Structured annuities avoid the expense of account supervision and need for annual administrative filings.
• Structured annuities provide the highest after-tax return with low risk in any interest rate environment when compared to a restrictive savings account or trust account.
• Structured annuities, with or without a trust,  serve to defray the costs of money management that reduce investment returns.