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Yes, your child’s personal injury settlement will typically be placed in a trust, restricted guardianship account, or structured annuity if the net amount exceeds $15,000. This helps ensure that the funds are protected until your child turns at least 18.
A child injury lawyer in Fort Myers can answer any questions that you have about whether your child’s personal injury settlement will be put into a trust. They will also advocate for you and your child throughout your personal injury case proceedings.
When Will My Child’s Personal Injury Settlement Be Placed Into a Trust?
In Florida, your child’s personal injury settlement will be incorporated into a trust if the total is greater than $15,000. Florida law requires court approval for child injury settlements of $15,000 or more. If the court approves your child’s settlement, it will likely put the funds from it into a trust, restricted bank account, or structured annuity.
A trust for your child’s injury settlement serves as a legally restricted, court-approved container that holds, manages, and invests funds for their long-term care. It is managed by a designated trustee, who will handle the trust’s funds until the child turns 18 or later. The trustee will safeguard these funds from misuse or creditors.
Trusts can be put into effect for settlements in many types of personal injury cases. For example, your child was injured in a motor vehicle accident, and their case against the liable party is settled. In this scenario, the settlement could be placed into a trust in accordance with Florida law.
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Factors to Consider if Your Child’s Personal Injury Settlement Is Going to Be Placed in a Trust
Get legal help if your child was injured due to no fault of their own and you’re in the middle of settlement negotiations with any liable parties. Receive legal guidance and support from child injury lawyers who’ve received dozens of positive client testimonials.
Your attorney will give you insights into various topics relating to having your child’s settlement put into a trust, including
- Special needs trust (SNT): This is often a great option for children who require ongoing care for their injuries. If your child is dealing with a disability, an SNT may allow them to get financial support without losing their eligibility for Medicaid or Supplemental Security Income (SSI).
- Trust structure: An SNT will hold assets for your child while a trustee manages the funds to pay for medical services and equipment that aren’t covered by public benefits. Comparatively, a settlement protection trust (SPT) is frequently used to manage a large, one-time payout.
- Trustee: A circuit court judge could appoint a parent, legal guardian, attorney, trust company, or private professional fiduciary to act as a trustee.
- Structured settlement: A trust can be paired with a structured settlement. Together, the trust and settlement can provide a guaranteed, long-term stream of payments and protection against inflation.
- Timing of the trust: Establish a trust before a settlement is finalized, as this will help minimize the risk of legal complications and ensure that the trust’s assets can be transferred smoothly down the line.
- If your child’s personal injury settlement will be put into a trust, who you choose as your legal representation is key. Partner with child injury attorneys who know the legal challenges that you will face in your case. These lawyers will address these challenges and safeguard the legal rights of you and your child as they negotiate a settlement on your behalf.
What Will Happen After My Child’s Personal Injury Settlement Is Placed Into a Trust?
Once your child’s personal injury settlement funds are placed into a trust, these are managed by a trustee for your child’s benefit, with court oversight. The trustee is responsible for the long-term security of your child’s trust funds and will continue to be until your child reaches a specific age.
Money from your child’s trust may be invested, and disbursements will be restricted to approved uses, including those for care, education, and support for your child. This helps protect against premature spending.
For as long as the trust remains in place, the funds held within it legally belong to your child. The trust helps ensure that the money from your child’s personal injury settlement will be used solely for their benefit today and moving forward.
Click To ContactLearn More About Whether Your Child’s Personal Injury Settlement Can Be Placed in a Trust
Talk with child injury lawyers about settlement trusts, how they work, and their benefits. Your attorney will work hard to get you and your child fair compensation. Plus, if a trust is required for the settlement, your lawyer will verify that it’s set up correctly and that you and your child get the most value possible out of it.
Viles & Beckman is a Florida personal injury law firm that has obtained more than $100 million in compensation for our clients. Our lawyers can help you file your child injury claim or lawsuit and get compensation that serves you and your child well for years. To find out more, schedule a free case consultation.
