In cases of a large wrongful death settlement for children, the funds may not be doled out in a lump sum. Rather, the monies may be placed in some type of trust account that pays the victim a portion of the settlement on a regular basis. These types of settlements are referred to as structured settlements, and they serve as a way to protect the minors’ funds.
Benefits of Structured Settlements
There are several types of timed payout options that might be considered for a wrongful death settlement for children, including guardianship accounts and structured trusts. Another type, however, is a structured settlement annuity.
Structured settlement annuities have numerous benefits.
- Taxes – they are untaxed. Not only are the settlement funds tax-exempt, but so is the earned interest.
- High rate of return – they generally yield a three to 10 percent interest and it’s guaranteed because there’s a fixed rate of return.
- Fund preservation – the funds are protected and reserved for their intended use.
- Flexibility – payout schedules are very flexible, with many options.
“While guardianship accounts and trust funds exist as viable options, structured settlement annuities are the preferred method for preserving a minor's financial security. This is because of their favorable financial returns, tax-free status, flexible payout schedules, and the protection they offer from unwarranted pilfering,” explains Annuity.org.
If you are unsure of which options are best for your child, an attorney who handles wrongful death cases involving minors as beneficiaries can explain your options.
Free Consult with a Wrongful Death Attorney in Clarksburg
For a free legal consultation regarding wrongful death claims and wrongful death settlements for children in Clarksburg, contact the Miley Legal Group at (304) 931-4088.