Terms Used In Louisiana Code of Civil Procedure 4521
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Trustee: A person or institution holding and administering property in trust.
A. In approving any proposal by which a minor is to be paid funds as the result of a judgment or settlement, the court may order:
(1) That the funds be paid directly into the registry of the court for the minor’s account, to be withdrawn only upon approval of the court. Withdrawn funds shall be invested directly in an interest-bearing investment as approved by the court unless the court for good cause approves another disposition.
(2) That the funds be invested directly in an interest-bearing investment approved by the court, unless the court for good cause approves another disposition.
(3) That the funds be placed in trust in accordance with the Louisiana Trust Code to be administered by an individual or corporate trustee as determined by the court. However, the court shall not order funds which will be paid to an unemancipated minor who is in the legal custody of the Department of Children and Family Services to be placed in trust if the amount of the judgment or settlement is less than fifty thousand dollars.
(4) That the funds be paid under a structured settlement agreement as approved by the court that provides for periodic payments and is underwritten by a financially responsible entity that assumes responsibility for future payments.
(5) Any combination of Subparagraphs (1) through (4) of this Paragraph.
B. In determining whether a proposed periodic payment schedule is in the best interest of the minor, the court shall consider the following factors:
(1) Age and life expectancy of the minor.
(2) Current and anticipated financial needs of the minor.
(3) Income and estate tax implications.
(4) Impact on eligibility for government benefits.
(5) Present value of the proposed payment arrangement and the method by which the value is calculated.
Added by Acts 1984, No. 296, §1; Acts 2008, No. 716, §1; Acts 2015, No. 260, §2, eff. Jan. 1, 2016; Acts 2018, No. 607, §1; Acts 2019, No. 17, §§1, 2, eff. May 24, 2019.