Since a minor cannot individually own a bank account, a responsible custodian must be assigned to help the minor with the account until the minor reaches the age of majority. The rest of the money will generally be used to purchase a Structured Settlement annuity, which is a tax-free investment vehicle that provides a steady stream of income over a specified period of time while earning interest.

The best thing about these investments is that they are tax-free and prevent an individual from going on a spending-spree and purchasing unnecessary things.

This is why it is of vast importance to work with professionals who specialize in Structured Settlements, as we do at Vega Settlement Group.