What is an "infant Compromise"?

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minor and keep the money safe until he or she isinfant's money can be withdrawn early - before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