QUESTION

Can I withdraw a portion of money from my daughter's structured settlement?

Asked on Apr 26th, 2013 on Bankruptcy - Michigan
More details to this question:
I need to withdraw a small portion of my daughters $185,000.00 structured settlement from an insurance company to save our house from foreclosure. I lost my job and I'm unable to make my mortgage payments.
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7 ANSWERS

Bankruptcy Attorney serving Schenectady, NY
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Is she miner than you can do it if you have the legal authorization to do it.
Answered on Apr 29th, 2013 at 4:01 AM

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Business Law Attorney serving Bingham Farms, MI at James T. Weiner, P.C.
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It depends upon how its structured.. you will need a judge's approval contact your attorney.
Answered on Apr 28th, 2013 at 8:56 PM

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Your daughter's structured settlement is for your daughter, not to save your house. I doubt that you would be able to pull the money out for your personal use but that is something you need to either review the documents or discuss with the attorney who put the structured settlement in place. However, if that money is for your daughter, common sense tells me that it is supposed to compensate her for some wrong/injury to her and that the money is to be used for her benefit, not yours. There are companies out there who will pay you a lump sum now in exchange for a future settlement. The problem is that these companies steeply discount of the money - i.e., they will only pay a small portion now. So this may not be realistic. If you need help with the mortgage, contact the NC Housing Finance Assistance agency or a local non-profit housing counselor. Get foreclosure counseling and see if you can obtain assistance through any of the foreclosure programs out there.
Answered on Apr 28th, 2013 at 8:35 PM

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Of this settled was reached through a minor's compromise involving the Court, you will need the Court's permission.
Answered on Apr 28th, 2013 at 8:04 PM

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Debt Collection Attorney serving Chicago, IL
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This depends on the terms of the settlement. An attorney would need to review it. Generally a structured settlement can only be used to benefit the injured party, here the daughter, but housing might qualify, esp if she gets an interest in the house.
Answered on Apr 28th, 2013 at 8:02 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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I cannot tell if that is possible without seeing the structured settlement and the restrictions on the spending of the funds.
Answered on Apr 28th, 2013 at 8:02 PM

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Family Attorney serving Henderson, NV at Harris, Yug & Ohlinger
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You will need court permission. But in my experience, in Nevada, that is exactly the type of raiding the piggy bank by parents that's forbidden. Assuming your daughter is a minor, it is your job to provide her a place to live, not her job to pay the mortgage through her injury.
Answered on Apr 28th, 2013 at 8:02 PM

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