What is an "infant Compromise"?

The N.Y.S. Unified Court System, in its on-line Glossarythe child some use of the money while preserving
of Legal Terms (see has the following definition:government benefits, may be in order. Sometimes the
Infant's compromise: a civil proceeding or motion forlawyer may call on a consultant to devise a
obtaining court approval of the settlement of an infant's"structured settlement." A structured settlement is
claim a civil proceeding or motion for obtaining courtdesigned to invest the infant's money profitably, while
approval of the settlement of an infant's claim.ensuring that the money is paid out over time, and not
Legally, an "infant" is a person under age eighteen. Inall available to the infant at age eighteen. Structured
New York State, an infant's case can not be settledsettlements can span years, with payments made
without the approval of a judge, not even if the parentmonthly or quarterly, and with larger payments timed
wants to accept the settlement. This situation typicallyto coincide with anticipated college tuition or the
arises when the infant has a claim or lawsuit forpurchase of a home, or anything that the infant,
personal injury arising out of an accident. The reason isparents and attorney can anticipate.
simple: to protect the minor and keep the money safeUnder certain rare, emergency circumstances an
until he or she is at least eighteen years old.infant's money can be withdrawn early - before the
New York State's Civil Practice Law and Ruleseighteenth birthday. But this requires a judge to
provides at Sections 1206 and 1207 for the authority ofapprove the request, and judges are careful to ensure
the Court in these matters. A judge plays severalthat the money is not being used for the family's
roles. First, the settlement can be refused, if for someregular living expenses.
reason the judge feels that it is inadequate, in otherSome terminology:
words, not enough money. Second, and as important,An infant or infant's "compromise order" is the paper
the judge can order where the funds are to be held orsigned by a judge approving the settlement of the
invested for the infant. Usually, the attorneyinfant's claim, authorizing payment to the attorney, and
recommends a proposed course of action for theempowering the infant's parent to sign a release
investment.settling the claim.
The judge also approves the attorney's fee. If theAn infant or infant's "compromise hearing" is the
judge feels that the attorney is seeking too large a feecourthouse meeting where the judge considers the
for too little work, then the lawyer's fee may besettlement. Present are the judge, attorney, parent and
reduced.infant. Typically, the judge makes sure that the terms
If the sum of money involved is not large, and theof the settlement are fair and understood by the
infant is not suffering from any kind of mental disabilityparent and, if he or she is old enough, by the child. Also,
that would prevent him or her from managing thethat they know that the case or claim is being settled
money at age eighteen, the money is usually orderedand disposed of forever; there is no going back for
to be deposited into a bank account and held jointlymore money, at any time. The judge may also ask the
with the bank, for the ultimate benefit of and use byinfant some questions about his or her physical
the infant. Large settlement amounts or infants whocondition, to try to see if any injuries have healed, or
may be receiving government benefits (such aslook at any scars that the infant may have suffered,
Medicaid or SSI) present a special challenge.as part of the process of evaluating the fairness of
In those circumstances, special trusts, designed to givethe proposed settlement.