Attorneys can best protect a minor’s financial future by structuring tax-free settlements into periodic payments for better long-term stability. Structured settlements are especially beneficial for minors who may have lost a parent due to severe injury, or experienced severe injury themselves and need to reserve money for essential long-term needs such as food, clothing, shelter, future academic expenses, and medical care. Structured settlements are typically distributed until the child turns 18 years of age.
The advantages of accepting a structured settlement are as follows:
- Tax-free settlement income.
- A fixed overall rate of return.
- The minor’s money is protected, and structured to meet the child’s needs until they reach the age of 18.
