§ 1206 — Disposition of proceeds of claim of infant, judicially declared incompetent or conservatee

New York § 1206

• Jurisdiction: New York
• Law CVP: Civil Practice Law & Rules
• Art. 12: Infants, Incompetents and Conservatees

Text

§ 1206. Disposition of proceeds of claim of infant, judicially\ndeclared incompetent or conservatee. Except as provided in EPTL 7-4.9,\nany property to which an infant, a person judicially declared to be\nincompetent or a conservatee is entitled, after deducting any expenses\nallowed by the court, shall be distributed to the guardian of his\nproperty, the committee of his property or conservator to be held for\nthe use and benefit of such infant, incompetent, or conservatee except\nthat:\n (a) in the case of an infant who is married to and resides with an\nadult spouse, the court may order that the property be distributed to\nsuch adult spouse for the use and benefit of the infant; or\n (b) if the value of the property does not exceed ten thousand dollars\nthe court may order the property distributed to a person with whom such\ninfant, incompetent or conservatee resides or who has some interest in\nhis welfare to be held for the use and benefit of such infant,\nincompetent or conservatee; or\n (c) the court may order that money constituting any part of the\nproperty be deposited in one or more specified insured banks or trust\ncompanies or savings banks or insured state or federal credit unions or\nbe invested in one or more specified accounts in insured savings and\nloan associations, or it may order that a structured settlement\nagreement be executed, which shall include any settlement whose terms\ncontain provisions for the payment of funds on an installment basis,\nprovided that with respect to future installment payments, the court may\norder that each party liable for such payments shall fund such payments,\nin an amount necessary to assure the future payments, in the form of an\nannuity contract executed by a qualified insurer and approved by the\nsuperintendent of financial services pursuant to articles fifty-A and\nfifty-B of this chapter. The court may elect that the money be deposited\nin a high interest yield account such as an insured "savings\ncertificate" or an insured "money market" account. The court may further\nelect to invest the money in one or more insured or guaranteed United\nStates treasury or municipal bills, notes or bonds. This money is\nsubject to withdrawal only upon order of the court, except that no court\norder shall be required to pay over to the infant who has attained the\nage of eighteen years all moneys so held unless the depository is in\nreceipt of an order from a court of competent jurisdiction directing it\nto withhold such payment beyond the infant's eighteenth birthday.\nNotwithstanding the preceding sentence, the ability of an infant who has\nattained the age of eighteen years to accelerate the receipt of future\ninstallment payments pursuant to a structured settlement agreement shall\nbe governed by the terms of such agreement. The reference to the age of\ntwenty-one years in any order made pursuant to this subdivision or its\npredecessor, prior to September first, nineteen hundred seventy-four,\ndirecting payment to the infant without further court order when he\nreaches the age of twenty-one years, shall be deemed to designate the\nage of eighteen years; or\n (d) the court may order that the property be held for the use and\nbenefit of such infant, incompetent or conservatee as provided by\nsubdivision (d) of section 1210.\n