Settlements for Minors – Cash or Structured Settlement?
College Tuition: US News & World Report Study
According to a recent study published by US News & World Report, college tuition and fees have risen significantly at all levels. In-state colleges have experienced a jump of 175%, while out-of-state colleges have seen a rise of 141%, and private universities have increased by 134%. ?Add to that other costs including housing, food, books and transportation and it's no wonder why student loan debt has become a national crisis.?
Cash Settlements Set Minors Up for Failure as Adults
Knowing the financial challenges that face young adults, it has always puzzled me when parents and guardians choose a cash settlement for a minor over a structured settlement.?Payment of a cash settlement into a court registry or blocked account results in putting a lump sum of cash into the hands of the minor the day they turn the age of majority. How many 18-year-olds are financially savvy and fiscally responsible? Few, if any. They simply don't have the education or life experience to deal with the pressures that sudden money will bring.?Choosing a lump sum for your child is setting them up for failure.
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Providing Children the Best Start in Life Possible
Unlike blocked accounts, a structured settlement will provide tax free interest growth along with a set payment schedule that the parents or guardian determine.?The payment stream is customized for the minor and can pay during the college years and beyond, paying for school, providing for transportation, paying off loans, helping to purchase a house and many other options that ensure as parents you've given them the best start in life possible.?
Parents or guardians of minors expecting an injury settlement should ask for a structured settlement. Defendants and their insurers should offer them when dealing with minors.?It can be the difference between a fiscal failure or a sound financial future.??