If I’m 17 years old and was recently in a car wreck, what will happent to my settlement and to whom will it go?

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If I’m 17 years old and was recently in a car wreck, what will happent to my settlement and to whom will it go?

Does it get put into a a trust fund until I’m 18 or will it go to my parents? If it is supposed to go to them, is there a petition that I can file so that my money will not go into my mom’s hands for her to blow on God knows what.

Asked on January 7, 2014 under Accident Law, Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

 

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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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