Structured settlements are forms of payment that are awarded as compensation in wrongful death or personal injury lawsuits. The settlement payment can be offered as a one-time lump sum or as a structured settlement, which is typically distributed through a series of payments due to their vast amounts.
These huge settlements offer financial stability and security to the recipients, this is especially true for minors as they plan to pay for their college education, put down payment on a car, or start a business in the future. However, there are rules that protect minor's financial security until they reach the age of 18.
How does the court protect the minors?
There have been some cases where a lump sum was provided as settlements. However, access to this large sum of money can be irresistible to the parents of the minor tasked to protect the kid and the money. So, that is why annuity payments are basically created as a structured settlement to prevent silly spending or early access.
The United States legal system takes the financial security of minors very seriously which is why it requires court approval before a settlement can be granted. The courts are responsible for deciding how the settlement is awarded, how the money is spent before the minor reaches 18 years old, and whether or not the value of the settlement is fair.
The purpose of the structured settlement for minors
The structured settlement funds can be used by the minor to pay for therapy, rehabilitation, medical bills, or other similar expenses. In the case a family member passed away, the structured settlement fund serves as the replacement for lost wages that were being used to help the minor previously. The structured settlement funds can also be used for paying for the kid college education or maintain a particular lifestyle after the kid reach the age of 18.
Should you maintain the payment structure or sell the annuity?
There are cases where the minor's parent or guardian does not prefer the regular payments from a structured settlement annuity. For instance, a kid may have mounting medical bills or require expensive surgery that needs to be paid immediately, and the monthly installment payments cannot pay off the sizeable medical bill.
This is one of the common reasons why parents or guardians consider selling a structured settlement payment. However, selling a minor's structured settlement annuity in most states is not legally permitted until the minor reaches the age of 18. But with court approval, some states allow you can sell the annuity.
How to sell the annuity
If you have decided that selling the annuity is more beneficial for your family financially and you have gotten court approval, you may be wondering how to go about selling it. You can work with a consultant or an annuity broker such as WePayMore Funding to find a buyer for the annuity.
Get your quote for Austin structured settlement cash today
For years, We PayMore Funding has been one of the leading structured settlement payment brokers in Austin. To learn more about Austin structured settlement cash, contact us today.