| The N.Y.S. Unified Court System, in its | | | | In those circumstances, special trusts, |
| on-line Glossary of Legal Terms (see has the | | | | designed to give the child some use of the |
| following definition: | | | | money while preserving government benefits, |
| | | | may be in order. Sometimes the lawyer may |
| Infant's compromise: a civil proceeding or | | | | call on a consultant to devise a "structured |
| motion for obtaining court approval of the | | | | settlement." A structured settlement is |
| settlement of an infant's claim a civil | | | | designed to invest the infant's money |
| proceeding or motion for obtaining court | | | | profitably, while ensuring that the money is |
| approval of the settlement of an infant's | | | | paid out over time, and not all available to |
| claim. | | | | the infant at age eighteen. Structured |
| | | | settlements can span years, with payments |
| Legally, an "infant" is a person under age | | | | made monthly or quarterly, and with larger |
| eighteen. In New York State, an infant's case | | | | payments timed to coincide with anticipated |
| can not be settled without the approval of a | | | | college tuition or the purchase of a home, or |
| judge, not even if the parent wants to accept | | | | anything that the infant, parents and |
| the settlement. This situation typically | | | | attorney can anticipate. |
| arises when the infant has a claim or lawsuit | | | | |
| for personal injury arising out of an | | | | Under certain rare, emergency circumstances |
| accident. The reason is simple: to protect | | | | an infant's money can be withdrawn early - |
| the minor and keep the money safe until he or | | | | before the eighteenth birthday. But this |
| she is at least eighteen years old. | | | | requires a judge to approve the request, and |
| | | | judges are careful to ensure that the money |
| New York State's Civil Practice Law and Rules | | | | is not being used for the family's regular |
| provides at Sections 1206 and 1207 for the | | | | living expenses. |
| authority of the Court in these matters. A | | | | |
| judge plays several roles. First, the | | | | Some terminology: |
| settlement can be refused, if for some reason | | | | |
| the judge feels that it is inadequate, in | | | | An infant or infant's "compromise order" is |
| other words, not enough money. Second, and as | | | | the paper signed by a judge approving the |
| important, the judge can order where the | | | | settlement of the infant's claim, authorizing |
| funds are to be held or invested for the | | | | payment to the attorney, and empowering the |
| infant. Usually, the attorney recommends a | | | | infant's parent to sign a release settling |
| proposed course of action for the investment. | | | | the claim. |
| | | | |
| The judge also approves the attorney's fee. | | | | An infant or infant's "compromise hearing" is |
| If the judge feels that the attorney is | | | | the courthouse meeting where the judge |
| seeking too large a fee for too little work, | | | | considers the settlement. Present are the |
| then the lawyer's fee may be reduced. | | | | judge, attorney, parent and infant. |
| | | | Typically, the judge makes sure that the |
| If the sum of money involved is not large, | | | | terms of the settlement are fair and |
| and the infant is not suffering from any kind | | | | understood by the parent and, if he or she is |
| of mental disability that would prevent him | | | | old enough, by the child. Also, that they |
| or her from managing the money at age | | | | know that the case or claim is being settled |
| eighteen, the money is usually ordered to be | | | | and disposed of forever; there is no going |
| deposited into a bank account and held | | | | back for more money, at any time. The judge |
| jointly with the bank, for the ultimate | | | | may also ask the infant some questions about |
| benefit of and use by the infant. Large | | | | his or her physical condition, to try to see |
| settlement amounts or infants who may be | | | | if any injuries have healed, or look at any |
| receiving government benefits (such as | | | | scars that the infant may have suffered, as |
| Medicaid or SSI) present a special challenge. | | | | part of the process of evaluating the |
| | | | fairness of the proposed settlement. |