2023 New York Laws › CVP - Civil Practice Law and Rules › Article 12 - Infants, Incompetents and Conservatees › 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.