Does Georgia require a blocked account for a minor's settlement?

We found no statute requiring one. A court-approved structured settlement or trust is allowed.

Can the court defer payment until the child is 18?

Yes. The compromise may defer all of the consideration until after the child reaches majority, or part of it, with no more than $25,000 distributed before then.

How do deferred amounts affect the net test?

Their present value is subtracted when computing the net settlement.

Does a structured settlement count toward the gross?

Yes. The gross includes amounts allocated to a structured settlement or similar arrangement.

The natural guardian for gross settlements of $25,000 or less, or a conservator above the net line; the court may approve a trust.

Structured Settlements, Trusts and Deferred Payments for a Child in Georgia

By the FigureMyTax Editorial Team · How we calculate

A Georgia court that approves a minor's compromise may approve a structured settlement or a trust, and may defer part of the money, up to $25,000 paid before majority, or all of it until after the child reaches 18.

What the court may approve

Under O.C.G.A. 29-3-3(d), if an order of approval is entered based on the child's best interest, the natural guardian, next friend or conservator may compromise a contested or doubtful claim without receiving a lump sum. The compromise may involve a structured settlement or a trust on terms the court approves or creates, including funding.

Deferral limits

The compromise may be in exchange for resolution of the action, or for an arrangement that defers either part of the consideration, with a total distribution before the child reaches majority not to exceed $25,000, or all of it until after the child reaches majority.

Why it matters for the tiers

The present value of amounts the child receives after majority, and of amounts placed in a court-approved trust, is subtracted when computing the net settlement, which can keep a larger settlement under the $25,000 net line and out of a conservatorship (see the three tiers).

The conservator's duties

A conservator holds and uses the settlement for the child and is accountable as provided in the statute on conservators, which we did not read. Ask the court what bond, reporting and withdrawal rules apply.

What we did not find

We found no Georgia statute that requires a blocked account or sets a specific investment for a child's settlement, and we did not read the court rules on how the money is held. Read how fees count in the gross and net tests, then see what is left in the Georgia minor's settlement calculator.

Injured in Georgia?

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Talk to a Georgia attorney

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Georgia's rules apply to your specific case with a licensed Georgia attorney.