What Happens To The Money In An Infant Settlement Case In Kingston, New York?

Under New York law (CPLR sections 1206 and 1208), the money in an infant settlement case must be invested in a specific manner for the infant’s benefit until the child reaches age 18.  The settlement funds must be invested in government insured bonds in an account (trust, bank account, mutual fund) set up in the parent’s name for the benefit of the child.  The settlement funds cannot be invested in stocks and only certain kinds of bonds are acceptable under New York law.

Every infant settlement in New York requires Court approval of the settlement.  This means that the Court will review the settlement in order to ensure that it is in the best interests of the child and that the settlement funds will be invested in accordance with the requirements of the law.  The Judge signs an Court “Order” approving the settlement and the Order specifically directs that the child’s portion of the settlement be invested only in government insured bonds until the child reaches “the age of majority” (a fancy term for “adulthood” or age 18).

If the lawyer or parent of the child fails to comply with the Court’s Order, then there is a serious problem.  The purpose of New York law is to ensure that the child’s settlement money is invested in the safest manner possible in order to ensure the funds will still be there when the child reaches age 18.

If you have questions or want more information, I welcome your phone call on my toll-free cell at 1-866-889-6882 or you can send me an e-mail at jfisher@fishermalpracticelaw.com .  You are always welcome to request a FREE copy of my book, The Seven Deadly Mistakes of Malpractice Victims, at the home page of my website at www.protectingpatientrights.com.