South Dakota attorneys who are experienced at handling child injury cases understand that one of the best ways to help the child in cases involving significant recoveries is to structure the settlement.
A structured settlement pays out a set amount of money to the child over a period of years, typically starting when the child turns 18. In most cases involving a large settlement, a structured settlement makes sense.
For instance, let’s say a young child is seriously injured in a car accident. The settlement for that case is placed in investments guaranteed to produce a certain amount of money every year once the child is 18. The structure can be set up in a variety of ways. For example, the child could receive a lump sum at age 18, and then get set payments every month or year for a certain period of time. Often, parents will agree to a structured settlement that provides most of the money in yearly sums payable when the child is ready for college so tuition payments can be covered.
Usually, the structure plan is funded by an annuity purchased through a life insurance company. The insurance companies are highly rated and regulated by the state to ensure that the money actually will be there when the child reaches 18.