A: This is beneficial for a baby injured at birth, or a child who is under the age of 14. In New York, the law will not permit a child to take possession of settlement monies until they turn 18 years of age. The Courts are naturally weary of parents as well who claim they will not squander their child's money away while waiting for them to turn 18. So, rather than have a child's settlement monies sitting in a savings account earning a few pennies every month, they will usually require that an annuity be purchased to make payments over a long period of time. This way, the capital amount of money is preserved, and the child gets the benefit of having more money at a later date, to be used for many things including schooling. An annuity is a contract where an insurance company promises to make periodic payments over a number of years. This topic has much information and will be addressed in a separate section of this website at a later time. If you have any questions about this area, please call me to discuss your concerns. There is no charge to speak to me. Really! Try it out. Pick up the phone and ask for Gerry Oginski. Ask me your question, and I'll do my best to answer it. Guaranteed.