Guardians, Deposits and Structured Settlements for a Child in New York

By the FigureMyTax Editorial Team · How we calculate

In New York an infant's property goes to the guardian of the infant's property, but if it is $10,000 or less the court may order it paid to a person with whom the infant resides, and the court may order deposits in insured institutions or a structured settlement funded by an annuity.

Who holds the money

CPLR 1206 says property to which an infant is entitled, after deducting expenses the court allows, is distributed to the guardian of the infant's property to be held for the infant's use and benefit.

The $10,000 line

If the value of the property does not exceed $10,000, the court may order it distributed to a person with whom the infant resides or who has some interest in the infant's welfare, to be held for the infant. If the infant is married and lives with an adult spouse, the court may order it paid to the spouse.

Deposits and structured settlements

The court may order that money be deposited in specified insured banks, trust companies, savings banks or insured credit unions, or invested in insured savings and loan accounts, or that a structured settlement be executed, including any settlement with installment payments. For future installments, the court may order each liable party to fund them with an annuity contract from a qualified insurer approved by the superintendent.

What we did not find

We did not read the rest of section 1206, the guardian-of-the-property appointment rules in the surrogate's court, or the court rules on infant settlements and accounts. Ask the court what it will require. Then read why a court orders the settlement and how the court fixes the fee, and see what is left in the New York minor's settlement calculator.

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