2012 New York Consolidated Laws
CVP - Civil Practice Law & Rules
Article 12 - (1201 - R1211) 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.