Is a Structured Settlement Right for My Child?
When a lawsuit is won or the defense concedes in order to avoid a drawn-out legal battle, the financial compensation can be granted in two ways: as a lump sum given all at once or as many smaller payments over a period of time. This latter option is known as a structured settlement and is often advisable under certain circumstances. One such situation is when the legal case involves a minor or there are children to consider when thinking about how much money will be granted in the case.
Since children cannot file lawsuits, it is up to their parents to fight on their behalf. This may happen if the child was involved in a car accident, dog attack, or medical malpractice. In any case, it is the child that should be compensated and a structured settlement is the best way to do this. Most structured settlements are set up as an annuity by the defending party’s insurance company, so the money is secure and may even gain interest over time. When the child comes of age, the funding is granted or it can be given over time to the parents.
Either way, a structured settlement is an excellent way to ensure that there will be money for your child’s future. Even if the lawsuit didn’t involve the child, you can use the annuity gained to help set up your child for the future, providing for them even long after the lawsuit is over. Only you, as a parent, can decide this however, but it is always a good idea to determine what your options are and make the most informed decision possible.
At the Franco Law Firm, we have the skills and experience to help you through your legal case and see that it is won for you and your family. To learn more about the services we offer and to schedule a free consultation with us today, please call us at (813) 872-0929.