Can my child’s Georgia injury settlement be paid out as a structured annuity?

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A child’s injury settlement in Georgia can be set up as a structured annuity that pays out over time rather than all at once. These arrangements are common for minors precisely because spreading the payments aligns with the goal of preserving the recovery until the child is old enough to use it responsibly, and often beyond.

How a structured settlement works

In a structured settlement, part or all of the recovery funds the purchase of an annuity from a financial company, which then makes scheduled payments. For a child, the schedule is frequently designed to release funds at or after age 18, sometimes in stages, for example tied to education or spread across early adulthood. The appeal is twofold: the money cannot be spent prematurely, and the future payments can exceed the up-front cost because the funds grow before they are paid.

Features that make structures attractive for minors include:

  • Payments timed to begin when the child reaches adulthood or specific milestones.
  • A locked schedule that protects the funds from early depletion.
  • Potential for the total payout to exceed the lump sum used to buy the annuity.

How Georgia law treats the annuity in a minor’s case

The structure does not avoid the safeguards that apply to a child’s settlement; it works within them. The full amount used to purchase an annuity counts toward the gross settlement when measuring the thresholds in O.C.G.A. § 29-3-3, so a structured deal whose gross figure exceeds $25,000 still requires court approval. Whether a conservator is also required turns on the net settlement, and here the structure can cut against itself: § 29-3-3 defines the net as the gross reduced by attorney fees, expenses, enforceable liens, and the present value of amounts the minor will receive after reaching majority. Because deferred annuity payments fall into that last category, a settlement structured to pay out after age 18 can hold the net at or below $25,000 and avoid the conservator requirement while still needing the court’s approval. A court reviewing the settlement considers whether the structure serves the child’s best interest, including the payment schedule and the financial soundness of the arrangement. In short, choosing an annuity changes how the money is paid, not whether the minor-protection rules apply.

The bottom line

A structured annuity is an available and often well-suited way to pay a Georgia child’s injury settlement, delaying access and potentially increasing the total received. The annuity is folded into the gross settlement for purposes of O.C.G.A. § 29-3-3, so court approval still governs any deal above $25,000, while the deferred payments can lower the net and determine whether a conservator is needed. A judge weighs whether the structure is in the child’s best interest before it is finalized.

This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.

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