If your child was injured by the negligence of another person, they may have a claim to recover compensation.
Just like an adult, a child has a right to compensation if they have been injured. They may not have a lost wages claim, but they would be able to recover compensation for damages such as: (1) past and future medical expenses; (2) the impairment to earn money in the future; and (3) past, present & future pain and suffering.
When a child receives a settlement or jury award, the law dictates that his or her settlement money should be deposited in a frozen or restricted bank account until the child turns 18 years old. This way, the money stays safe and cannot be spent by a parent or child without court approval.
Once the child turns 18 years old, the money is his. To avoid an 18-year-old getting too much money at one time, an annuity or structured settlement offers periodic payouts to the child over the course of usually many years. Not only does this prevent the child from receiving too much money at one time, but it also typically increases the total amount received. The parent or guardian of the child can choose to do this with the child’s settlement money.
The frequency of the periodic payments can be set up in many different ways, such as monthly or yearly. One payment plan that we recommend provides a lump sum payment to the recipient at ages 18, 21, 25 and 30, with each payment being larger than the last.