The Clients

A toddler and parent.

The Case

The toddler suffered injuries causing facial scars.

The Problem

The claim was not heavily disputed, and a settlement was reached.  However, there were concerns about how the funds would be handled on behalf of the toddler, who could not legally hold the funds until turning eighteen.  

The child’s mother was concerned about the possibility that the child would simply receive a large pot of money upon turning eighteen.  In addition to the imprudence of youth, there was some family history of substance abuse.  This amplified the mother’s concerns.

The Solution

We arranged for a structured settlement.  This meant the settlement funds would be used to purchase an annuity, which would pay set amounts on set dates.  We had the mother appointed as a temporary conservator so she would have authority to sign settlement documents and arrange for the annuity.

The Outcome

With our assistance, the mother handled the purchase of the annuity.  It provided for payments at set dates when the child would typically be in college, to cover tuition, and additional payments in the child’s 20’s and again at 30.  

By getting the money in this way, the child could learn from experience if any funds were initially used imprudently.  The largest sum came last, potentially for the child to buy a house or start a business.