How to Structure Personal Injury Settlements for Children in Ontario

Settlements for Children

When a settlement is granted to a child for personal injuries such as head injury, permanent disability or brain injury, due to a serious car accident, it is important for caregivers to understand the various ways of structuring that settlement in order to care for the child in the future.

Any settlement of a child’s claim or for any incapable person requires court approval whether a lawsuit has been started or not.

For very small settlements, where the child is likely to be “capable” at age 18 and is not going to need access to the funds for medical or rehabilitation needs before the age of 18, I often recommend that this money is simply placed into a court account to be paid out when the child reaches 18. The money can also be paid out before age 18 upon motion to the court.

For smaller settlements where the child requires immediate access to the funds, the Court could make an Order that the money be paid over to the parents for the benefit of the child.

When to choose a structured settlement

For more substantial settlements, and even some smaller settlements, a structured settlement makes a lot of sense, particularly where the child is going to need access to monies on a regular basis to pay for medical and rehabilitation expenses, attendant care expenses, or to supplement their income.

A structured settlement is an annuity that pays monies out on a pre-determined basis. It is guaranteed and tax-free. It cannot be collapsed at a later date.

Accident Benefits in Ontario for your Injured Child

This post is part two in a series of informative posts about accessing accident benefits in Ontario for injured children by personal injury lawyer Lisa D. Belcourt. As part of Ontario’s Injury Lawyers team, Lisa has extensive experience working with families of injured children to help them make the best decisions possible after an accident.
You can contact Lisa at 1-800- 563-6348
Read part one of this series on accessing benefits for injured children HOW TO ACCESS CAR ACCIDENT BENEFITS IN ONTARIO FOR YOUR INJURED CHILD