N.Y. Civil Practice Law & Rules § 1206: Disposition of proceeds of claim of infant, judicially declared incompetent or conservatee

§ 1206. Disposition of proceeds of claim of infant, judicially

declared incompetent or conservatee. Except as provided in EPTL 7-4.9,

any property to which an infant, a person judicially declared to be

incompetent or a conservatee is entitled, after deducting any expenses

allowed by the court, shall be distributed to the guardian of his

property, the committee of his property or conservator to be held for

the use and benefit of such infant, incompetent, or conservatee except

that:

(a) in the case of an infant who is married to and resides with an

adult spouse, the court may order that the property be distributed to

such adult spouse for the use and benefit of the infant; or

(b) if the value of the property does not exceed ten thousand dollars

the court may order the property distributed to a person with whom such

infant, incompetent or conservatee resides or who has some interest in

his welfare to be held for the use and benefit of such infant,

incompetent or conservatee; or

(c) the court may order that money constituting any part of the

property be deposited in one or more specified insured banks or trust

companies or savings banks or insured state or federal credit unions or

be invested in one or more specified accounts in insured savings and

loan associations, or it may order that a structured settlement

agreement be executed, which shall include any settlement whose terms

contain provisions for the payment of funds on an installment basis,

provided that with respect to future installment payments, the court may

order that each party liable for such payments shall fund such payments,

in an amount necessary to assure the future payments, in the form of an

annuity contract executed by a qualified insurer and approved by the

superintendent of financial services pursuant to articles fifty-A and

fifty-B of this chapter. The court may elect that the money be deposited

in a high interest yield account such as an insured "savings

certificate" or an insured "money market" account. The court may further

elect to invest the money in one or more insured or guaranteed United

States treasury or municipal bills, notes or bonds. This money is

subject to withdrawal only upon order of the court, except that no court

order shall be required to pay over to the infant who has attained the

age of eighteen years all moneys so held unless the depository is in

receipt of an order from a court of competent jurisdiction directing it

to withhold such payment beyond the infant's eighteenth birthday.

Notwithstanding the preceding sentence, the ability of an infant who has

attained the age of eighteen years to accelerate the receipt of future

installment payments pursuant to a structured settlement agreement shall

be governed by the terms of such agreement. The reference to the age of

twenty-one years in any order made pursuant to this subdivision or its

predecessor, prior to September first, nineteen hundred seventy-four,

directing payment to the infant without further court order when he

reaches the age of twenty-one years, shall be deemed to designate the

age of eighteen years; or

(d) the court may order that the property be held for the use and

benefit of such infant, incompetent or conservatee as provided by

subdivision (d) of section 1210.