Broker Check

Court Restricted UTMA

  • What is a "CR" UTMA account?
    A court restricted UTMA provides parents, grandparents, and others a simple way to invest settlement recoveries for a minor. A custodian will be named by the court who has the fiduciary duty to manage and invest the assets on behalf of the minor until they become of legal age. These accounts offer numerous market-based investment options and the flexibility to use funds for educational or non-educational expenses. The Court restriction adds a level of safety by not allowing funds to be transferred out of the account until the minor reaches certain ages, without a subsequent court order. Unlike a structured settlement annuity, these funds are not guaranteed against loss and have risk.
  • Who should use Structured Settlements?
    • $5,000.00 minimum. Negotiable for long term attorney clients. 

    1. Court restricted accounts (savings or checking account) that are setup at local banks. These accounts require court approval to access funds.
    2. A structured settlement annuity. These annuities typically beat the returns of a restricted account. This is especially true if the minor is under the age of 15 (due to the three year of greater deferral period between 15 and the age of majority, typically 18).

    Structured Settlements may also benefit:

    • Minors who need assistance with college tuition payments
    • An injured party who desires to receive a steady stream of income for any period of time
    • Injured parties who may have problems managing money
    • Injured parties who are mentally incompetent to manage and protect their funds from loss
    • Injured parties who want to shield settlement monies from future taxation on earnings
    • Severely injured people who have life care plans based on their injuries and have a shortened life expectancy (these types of cases include traumatic brain injuries and paraplegia)
    • Anyone that will require future care
  • How do injured parties benefit from Structured Settlements?

    The greatest benefit to the injured party is protection. When properly designed, annuitants are assured that guaranteed tax-free payments will always be available to meet their financial demands. There is no risk that payment amounts will change or fall victim to the ebb and flow of the stock market. A structured settlement provides a claimant with financial security in a time of uncertainty. They are protected and governed by Federal legislation and IRS regulations. Confidence, peace of mind and guaranteed performance are all trademarks of the structured settlement, helping injured parties move forward with their lives.

  • How is a Structured Settlement advantageous to the settlement process?

    It is typical for a claimant and the insurance carrier to disagree on the value of a claim. The main issue is often that the claim is being valued in terms of a one-time cash settlement. If a claimant shifts the focus to what he or she will need in future income, often an agreement can be reached which is beneficial to both parties. In short, this annuity often breaks deadlocks between the claimant and the insurance company. Also, it may encourage a settlement sooner than would be the case with a cash only settlement.

  • What payment designs exist?

    There are nearly limitless design options available to injured parties when utilizing structured settlements. Payments can be made on a monthly, quarterly, semi-annual or annual basis. Payments can be made for a defined period of time or a lifetime. Lump sum payments can also be made on specific future dates, to coincide with anticipated major expenses, such as; college expenses, medical expenses or prosthetic replacements.Typically an annuity design is comprised of multiple payment streams to meet all of the future needs of the injured party. Payments can commence immediately after settlement or be deferred to future identified dates.

    If income needs are expected to grow, inflation hedges can be put in place through cost of living adjustments (COLAs) or step-up increases in the payment amount.

  • Can my family inherit the money from my Structured Settlement?

    Any remaining guaranteed payments that are part of the annuity payment schedule will be made to an identified beneficiary, such as; a spouse, child, grandchild or nonprofit entity (i.e. a church). All payments are also made to the beneficiary in a guaranteed tax-free manner. This offers unprecedented estate protection and peace of mind for surviving family members.

  • How safe is a Structured Settlement?

    Fixed annuities are among the most conservative financial investments. This makes them ideal investment vehicles for injured parties who cannot afford to speculate with their future.

    Structured settlement annuities are backed by leading life insurance companies. Many of these life insurance companies have been in business for more than a hundred years; through recessions, depressions and world wars. These life insurance companies have maintained stability in various financial climates promoting the structured settlement as a safe and trusted option.

    Utilizing direct deposit of funds for annuitants, there is not much to think about once the annuity is in place. Funds are deposited on the identified dates and can be used immediately by the claimant to meet the financial demands of daily life. At the end of the day, designing a well thought out structured settlement is always a smart idea as it eliminates the risk of financial mismanagement by the injured party or a third party investor.

  • Are there other investment vehicles I can consider instead of an annuity?

    Of course. However, none offer the guaranteed tax-free benefits associated with a structured settlement. A structured settlement is often used to address a catastrophic event in the life of an injured person.

    Investing settlement dollars without instituting a structured settlement component requires consistent monitoring of investment performance. For many injured people, the position of hoping there are adequate resources available when they are needed does not make sense. By working with Garrison Settlements you can eliminate worry and move forward – stress free.

  • I have a friend who is a financial planner. Could I do better if they manage my settlement proceeds for me?

    Possibly and possibly not. What is clear, is that because of the tax-free status of the payments, structured settlements often offer returns higher than those normally available in other low risk investments.

    However, you may want to consult your financial adviser about responsible re-investing of your annuity payments through dollar cost averaging, or fixed income investing. To get a higher return you will have to accept higher risk and greater uncertainty.

    There is never a fee from Garrison Settlements associated with structured settlement quoting, setup or management.

    Structured settlements are guaranteed, tax-free, and designed to provide income as it is needed.

  • Can I get a Structured Settlement from my own financial adviser?

    While this may be possible, most financial advisers do not have the experience in accident-related settlement planning and the laws and IRS codes that surround a structured settlement. If you have a financial adviser that you want involved, have them contact us. At Garrison Settlements we are here to protect the physically injured. Often we can assist your financial planner in creating the best plan for you utilizing a combination of structured settlement annuities and financial products.

  • How much do Structured Settlement consultants charge?

    There are no out of pocket expenses for utilizing a structured settlement consultant from Garrison Settlements. If your case is settled with a structured settlement, your consultant’s services are paid by the life insurance company that guarantees your future payments.

  • Why should I work with Garrison Settlements?

    Great question and one we are humbled you are considering. We are guided by our faith, and as such, handle each claim with the personal attention we would our own finances. Garrison Settlements representatives are dedicated to assisting the physically injured. We have settled cases in all 50 States and understand every claim is unique, as are the individuals involved in the negotiation. Our goal is to eliminate stress and create financial solutions that allow everyone to move forward with their lives.

Should you still have questions about additional options, please call our Nationwide Settlement Planning Line at (844) 222-0020.