Can a Minor’s Settlement Payments Be Sold?


Sometimes minors receive compensation in structured settlements in personal injury, wrongful death  or medical malpractice lawsuits. Those periodic payments cater to children’s needs over a fixed period. However, the income from a structured settlement could prove inadequate to cater to the minor’s expenses should something unexpected arrive. When this happens you can try to sell the structured settlement to get a lump sum.

But is it possible to sell minors’ structured settlements?

Selling Minors’ Structured Settlements  

The law states that transferring the rights of a structured settlement from the seller to companies that buy structured settlements must have court approval. That curbs fraud and ensures that the payment is sold in good faith. 

When it comes to minors, the parent or guardian must get the court’s approval to sell the structured settlement. You’ll have to complete the application documents on behalf of the minor. Also, you must prove to the judge that the child’s welfare will improve by selling their structured settlements.

However, selling a minor’s structured settlement is difficult, as the courts scrutinize the sales harshly. The courts prohibit you from investing with your child’s structured settlements. That ensures the child’s money is not spent for the wrong reasons.

The judge appoints a guardian to review the settlement before approving your request. The guardian reviews your facts and reputation and makes recommendations to the court.

 If there are any suspicions about the purpose of selling, the court will not approve. But if the reasons for your sale are legitimate to improve the life of the minors you can contact a reputable firm such as We Pay More Funding. Alternatively, minors can sell their structured payments after turning 18.

Reasons to Sell Minors’ Structured Payments

1.To pay college tuition fees

If the periodic payments are not enough to pay in full the tuition fee, you can sell their structured settlement.

2.Cover emergencies

If an emergency arises, you can seek a loan. But such loans come with interest rates. Instead of paying those higher rates, you can sell the minors’ structured settlement.

3. Paying medical bills

When the periodic payments can no longer pay the minor’s medical bills, you can seek court approval to sell the structured settlement to pay the bills.

Types of Cases That Lead to Minors’ Structured Settlement

1.Personal injury If a child suffers harm or injury during birth or other reasons, a structured settlement is set on behalf of the minor.

2.Medical malpractice

The courts usually grant structured settlements on behalf of the minor when medical malpractice affects a minor.

3.Death by negligence.

When it’s proven that the death of a child’s parents was a result of negligence, a structured settlement is given.

Benefits of the structured settlement for minors

  • Ensure the minors’ basic needs are met
  • Structured settlement payments are constant and do not change from the agreement for any external reason
  • It’s not taxed as income
  • Life insurance companies guarantee the money


Managing a large sum of money meant for your child’s lifetime needs is difficult. For that reason, the courts advocate for a structured settlement that entails a series of periodic payments. Unfortunately, such amounts might become inadequate to cater to the child’s basic needs. That could leave parents and guardians with a large number of debts. If needed you can try to sell a structured settlement to get a lump sum to be used to help ease financial strain stemming from the minors needs.