{"jurisdiction": "us-ny", "code": "cplr", "section": "1206", "citation": "CPLR § 1206", "heading": "Disposition of proceeds of claim of infant, judicially declared incompetent or conservatee", "text": ["§ 1206. Disposition of proceeds of claim of infant, judicially declared incompetent or conservatee. Except as provided in EPTL 7-4.9, any property to which an infant, a person judicially declared to be incompetent or a conservatee is entitled, after deducting any expenses allowed by the court, shall be distributed to the guardian of his property, the committee of his property or conservator to be held for the use and benefit of such infant, incompetent, or conservatee except that:", "(a) in the case of an infant who is married to and resides with an adult spouse, the court may order that the property be distributed to such adult spouse for the use and benefit of the infant; or", "(b) if the value of the property does not exceed ten thousand dollars the court may order the property distributed to a person with whom such infant, incompetent or conservatee resides or who has some interest in his welfare to be held for the use and benefit of such infant, incompetent or conservatee; or", "(c) the court may order that money constituting any part of the property be deposited in one or more specified insured banks or trust companies or savings banks or insured state or federal credit unions or be invested in one or more specified accounts in insured savings and loan associations, or it may order that a structured settlement agreement be executed, which shall include any settlement whose terms contain provisions for the payment of funds on an installment basis, provided that with respect to future installment payments, the court may order that each party liable for such payments shall fund such payments, in an amount necessary to assure the future payments, in the form of an annuity contract executed by a qualified insurer and approved by the superintendent of financial services pursuant to articles fifty-A and fifty-B of this chapter. The court may elect that the money be deposited in a high interest yield account such as an insured \"savings certificate\" or an insured \"money market\" account. The court may further elect to invest the money in one or more insured or guaranteed United States treasury or municipal bills, notes or bonds. This money is subject to withdrawal only upon order of the court, except that no court order shall be required to pay over to the infant who has attained the age of eighteen years all moneys so held unless the depository is in receipt of an order from a court of competent jurisdiction directing it to withhold such payment beyond the infant's eighteenth birthday. Notwithstanding the preceding sentence, the ability of an infant who has attained the age of eighteen years to accelerate the receipt of future installment payments pursuant to a structured settlement agreement shall be governed by the terms of such agreement. The reference to the age of twenty-one years in any order made pursuant to this subdivision or its predecessor, prior to September first, nineteen hundred seventy-four, directing payment to the infant without further court order when he reaches the age of twenty-one years, shall be deemed to designate the age of eighteen years; or", "(d) the court may order that the property be held for the use and benefit of such infant, incompetent or conservatee as provided by subdivision (d) of section 1210."], "official_source": "https://www.nysenate.gov/legislation/laws/CVP/1206", "from_official_api": true, "plain_english": "This rule controls how property recovered for an infant, judicially declared incompetent person, or conservatee is protected after **court-allowed expenses** are deducted.\n- **General rule:** Except as **EPTL 7-4.9** provides, the property goes to the **guardian of the property, committee of the property, or conservator** to hold for the person's use and benefit.\n- **(a)** For an infant **married to and living with an adult spouse**, the court **may** order the property paid to that spouse for the infant's benefit.\n- **(b)** If the property is worth **$10,000 or less**, the court **may** order it given to a person the protected person lives with or who has an interest in his or her welfare, to hold for that person's benefit. ★\n- **(c)** The court **may** order money deposited in specified insured banks, trust companies, savings banks or credit unions, or insured savings and loan accounts, including high-interest insured accounts, or invested in insured or guaranteed U.S. treasury or municipal obligations; or it may order a **structured settlement** (any installment-payment settlement), and may require each party liable for future installments to fund them with an **annuity from a qualified insurer approved by the superintendent of financial services** under **articles 50-A and 50-B**. The money may be withdrawn **only by court order**, except that **no order is needed to pay an infant who has turned 18** unless the depository has received a court order to keep withholding it. ★ An 18-year-old's ability to **accelerate structured-settlement installments** is governed by the agreement. In orders made **before September 1, 1974**, a direction to pay at **age 21** is deemed to mean **age 18**.\n- **(d)** The court **may** order the property held for the person's benefit as provided by **subdivision (d) of section 1210**.", "in_force_on": "2026-05-31", "retrieved": "2026-09-27", "url": "https://elyphived.com/us-ny/cplr/1206", "publisher": "Elyphived LLC"}