New York courts require structured settlements for minors for personal injury claims or some other alternative vehicle that meets court approval. Cases involving injured minors have this requirement because structured payments can provide long-term financial protection for the child and are viewed by the New York courts as being in the child’s best interest. Structured settlements are presented for court approval by infant compromise order when parties reach a settlement agreement and they help preserve settlement proceeds until the child reaches adulthood.
When a personal injury case settles in New York, attorneys must determine whether Medicaid, DSS, or other agencies have reimbursement liens against settlement proceeds. In infant compromise proceedings, courts often require confirmation that liens have been identified and addressed before settlement funds are distributed.
Structured settlement materials presented to the court typically demonstrate guaranteed future annuity payments to be reviewed and approved by the court. There are companies such as Creative Capital, Inc. that assist attorneys and their clients in obtaining structured settlement terms from multiple insurance companies to obtain the best structure available. The terms are then presented to the court in the infant’s compromise order for the Judge’s signature.
At Weber & Prakope, PLLC our attorneys help our clients evaluate structured settlements and guide families through the infant’s compromise proceeding. If you are the parent or guardian of an injured minor, call (516) 452-9010 or initiate a chat at weberprakope.com.
