Is there any way to use the initial payment amount of a structured settlement involving a minor child?
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Is there any way to use the initial payment amount of a structured settlement involving a minor child?
My 9-year-old severely injured her knee on a trampoline at a friends house. Homeowners insurance is paying 155K over 10 years with initial amount of 25K. We were told that the first payment could be used to benefit her and the family for all that we have been through (i.e. Disney World). In the paperwork that we have received though, all money used must be approved by the courts. We have all missed out on things due to this injury and do not want to have to wait until she is 18 to start making things up to her. What can we do? Injury happened in FL – we now live in AL
Asked on May 20, 2009 under Personal Injury, Alabama
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
There are companies out there that will buy your structered settlement payment and give you the money now as opposed to waiting till she is 18. however, the money that will be given is a disounted value based on the present value of the money that will be paid out - if that makes sense. For instance, the 155K over 10 years may equal 70K today in a lump sum. Furthermore, most courts that permit the transfer of structured settlements will require you as the guardian to show why there is such a need to get her the money now as opposed to when she is 18. Based on her age, i doubt that you would be able to convince the court as this money is best used to pay for her college edu and a down payment on a condo to live in while in school in AL or whereever she goes. I can reccomend a company called "Singer Asset Finance Company, LLC." the can take care of you, but i am not sure if the court will approve the transfer. good luck!
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