Structured Settlements for Minors

Structured Settlements for Minors

This video explains how structured settlements for minors work, highlighting their tax-free income, protection until age 18, and court-approved plans designed to ensure long-term financial security for the child's future needs.
Video Transcript

Structured Settlements for Minors

In legal cases involving children, they may receive a large sum of money through a settlement. Structured settlements are often used to ensure the funds are conserved until the child reaches 18.

How Minors Benefit From Structured Settlements

• Tax-free income

• No maintenance fees

• Fixed rate of return

• Regulated by insurance commissioners in all 50 states

• Protected funds until the child reaches 18

Designing Structured Settlements for Minors

Courts seek to:

• Ensure that the child receives the funds they are entitled to.

• Ensure that the money grows over time.

• Protect the funds from potential misuse by parents or guardians.

• Prevent the child from spending the money all at once.

• Ensure that the money lasts over an extended period.

The Plan Can Be Designed To Provide For: College tuition

• Down payment or purchase of a car

• Down payment or purchase of a house

• Regular cost-of-living adjustments