What Happens to a Minor’s Settlement Money?

When a minor child’s case is settled, the parent or guardian is going to have a choice as to what to do with that settlement money. One option is that the parent can choose to place the money in what’s called a structured settlement. Usually that is an annuitized product that allows the parent to have a lot of specificity as to when that money will be disbursed to the child. Sometimes parents like to wait until the child is 20 or 25 years old before they receive the majority of their settlement. Sometimes parents like to have the child receive the money as soon as they turn 18. The other option a parent will have is whether or not they want to become the conservator of that money that the child is receiving. And when they choose to become the conservator of that money, the court will oversee how they invest and spend that money in order to protect it for the benefit of the child until the child turns 18.