Millenium Settlement Consulting

Structured Settlements for Minors

Ensuring Your Child’s Financial Security

Several Financial Options Exist for the Settlement of a Child’s Case

Guardianship Account

  • Usually a money market account or equivalent over which the court maintains some control. The money typically earns a modest interest rate and the earnings are taxed on an annual basis.
  • Costs are involved in setting up the guardianship; along with annual fees for accounting and filing.
  • The guardian has little control over the money; court approval is required for any change in the account.


  • Professionally managed by a bank trust department, independent trustee, or independent financial advisor.
  • Annual trust administration fees exist, will likely require ongoing management fees.
  • Any gains are potentially taxable.

Structured Settlement Annuity

  • Allows for the design of a tax-free, guaranteed, reliable stream of payments tailored to your child’s specific needs.
  • Will earn a competitive rate of return on investment, and according to section 104(a)(2) of the IRS code, the earnings on settlement annuities from personal injury cases will not be taxed as income.
  • Once the rate of return is determined, it will never decrease. However, payments can be structured to increase with a cost of living adjustment.
  • No ongoing maintenance or management fees.

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