Your Child’s Personal Injury Settlement Explained

Yes. Parents must decide how the settlement funds will be held before the court approves the settlement. The judge will expect a clear plan that protects the child.

A guardian ad litem is a court-appointed attorney or professional who reviews the case and recommends what’s best for your child. They review the settlement amount and how the funds will be managed.

It’s a secure account run by the county or district clerk. The money stays there until your child turns eighteen unless the court approves an early withdrawal for the necessary expense.

A structured settlement uses the funds to buy an annuity policy that pays your child over time, often starting at age eighteen. Payments can be allocated to future needs, such as college or medical care.

A Section 142 trust is created under the Texas Property Code Section 142, which allows the court to set up a trust to manage a child’s settlement money.

The court appoints a trustee, who can use the funds for approved expenses before the child turns eighteen. This option offers greater flexibility than the court registry and permits professional investment and long-term planning while remaining subject to court oversight.

If your child has a disability and relies on Medicaid or SSI, a Special Needs

Trust protects those benefits. The funds in the trust may be used for additional support without counting as the child’s personal assets.

Yes. Parents can combine options, for example, a part structured settlement and part trust, to balance long-term protection with access to funds as the child grows.

For more information, contact the experts at Gleason Settlements today.

• Comprehensive financial and needs assessment
• Design a tailored settlement plan and decide which plan best fits your needs.
• Finalize Plan & Draft the Settlement Information
• Review draft settlement documents
• Court Approval & Signed Settlement Documents
• Funding
• Document Submission to the Providers and Request the Policy
• Gleason Settlements will answer your questions after your settlement is complete.