Detailed answer — clear steps and legal context under Oregon law

When a settlement produces money intended for a child, you must protect the funds until the child can legally control them. In Oregon that often means using one of several court- or statutory-approved methods (for example, a court-approved compromise of the claim, a blocked account, a guardianship/conservatorship, a trust for the child, or buying a structured settlement annuity). Each choice affects access to money, taxes, public benefits, and long-term security.

Key legal framework

Oregon law addresses the care, management, and court supervision of a minor’s property in statutes and court practice involving guardians and conservators. For general rules about guardianship/conservatorship in Oregon see the Oregon Revised Statutes, Chapter 126:

ORS Chapter 126 — Guardians and Conservators

The Oregon Judicial Department also provides practical forms and guidance for guardianship and related court procedures:

Oregon Judicial Department — Guardianship information and forms

Common options for holding settlement money for a child

1. Blocked (court-approved) account: The court orders the settlement paid into a blocked account at a bank or financial institution. The funds remain blocked until the child reaches the age specified by the court. This is common for relatively modest settlements or when the court simply wants to preserve the money without a long-term structure.
2. Trust for the child: The settlement funds can be placed into a trust (often a testamentary-type trust or a special needs trust if needed) that names a trustee to manage distributions according to the trust terms. Trusts give control over how and when money is used (education, health care, maintenance).
3. Guardianship or conservatorship: If a parent or guardian must manage the child’s property, the court can appoint a conservator or require formal accountings. This creates ongoing court oversight and reporting obligations.
4. Structured settlement annuity: Instead of a lump sum, you or the settling parties can purchase an annuity from a licensed insurance company that pays the child a stream of income (monthly, yearly, or in scheduled lump payments). Structured settlements can protect the money, provide predictable income, and sometimes offer tax advantages for certain personal-injury settlements.

How a structured settlement annuity typically works

With a structured settlement, the defendant (or insurer) and plaintiff agree the settlement proceeds will be used to buy an annuity contract that will pay the beneficiary (the child) over time. The insurer issues the annuity and guarantees the payment stream. You can design payments for immediate needs, future education costs, or long-term income.

Practical steps to set up an annuity for a child in Oregon

1. Talk to the child’s attorney (or get one): If a child’s interests are at stake, the court often requires independent representation for the child or a guardian ad litem. An experienced attorney will advise on whether court approval is needed and the precise paperwork to protect the settlement.
2. Decide the structure and timing: Identify whether you want immediate periodic payments, deferred payments, a guaranteed period, survivor options, or combinations. Decide whether payments should begin at a set age (for example, at age 18, 21, or later).
3. Get court approval if required: Many Oregon courts will want to approve the proposed settlement arrangement for a minor. That can include approval to (a) place funds in a blocked account, (b) create a trust, (c) appoint a conservator, or (d) permit purchase of an annuity. File the proposed order and supporting documents with the probate/juvenile court as required by local practice and ORS Chapter 126 guidance.
4. Select a reputable annuity issuer and product: Work with the insurer, your attorney, and possibly a financial adviser to pick a highly rated life/annuity company that can offer the payment schedule you want. Confirm the insurer is licensed in Oregon (check the Oregon Division of Financial Regulation).
5. Document everything for the court: Provide the court with the annuity contract language, the insurer’s rating, the payment schedule, any trust terms, and an explanation of why the arrangement is in the child’s best interest. The court will want to see that the arrangement protects the child and that fees/commissions are reasonable.
6. Close the transaction and establish reporting: After purchase, furnish proof of purchase to the court and follow required accounting procedures. If a conservator or trustee is involved, expect periodic accountings to the court.

Tax and means-tested benefit considerations

Structured settlements for personal-injury awards are often tax-favored under federal law, but tax consequences depend on the nature of the award. Also examine how receiving periodic payments may affect eligibility for means-tested programs (Medicaid, SNAP, SSI). Coordinate with counsel and a benefits specialist before finalizing a plan.

Who should file petitions and when?

If you are the child’s parent or legal guardian, you may need to petition the probate court for approval before finalizing the settlement arrangement. If a conservatorship or trust will control the funds, expect the court to require filings and accountings under ORS Chapter 126 and the Oregon Judicial Department’s procedures.

Example (hypothetical)

Imagine a $300,000 settlement for medical and pain-and-suffering damages on behalf of a 10‑year‑old. The parties agree to protect future payments by buying an annuity that pays $2,000 per month beginning at age 18 and a separate smaller annuity that funds current medical needs through trustee loans. The court reviews the annuity contracts, finds the insurer licensed and financially healthy, and approves the purchase and trust arrangement under a petition filed by the child’s attorney. The trustee files yearly accountings until the child reaches the age mentioned in the trust. This approach limits impulsive spending and maintains court oversight.

Where to get official Oregon information and regulator contacts

• Oregon Revised Statutes — Guardians and Conservators (Chapter 126): https://www.oregonlegislature.gov/bills_laws/ors/ors126.html
• Oregon Judicial Department — Guardianship information and forms: https://www.courts.oregon.gov/services/Pages/Guardianship.aspx
• Oregon Division of Financial Regulation (insurance and annuity licensing): https://dfr.oregon.gov/

Bottom line: A structured annuity can protect settlement proceeds for a child, but you should coordinate the chosen annuity with a court-approved plan (blocked account, trust, or conservatorship) to comply with Oregon procedures. A lawyer experienced in representing minors and handling settlement approval can make sure the plan meets court standards and preserves the child’s benefits and long‑term security.

Disclaimer: This article provides general information about Oregon law and is not legal advice. Consult a qualified Oregon attorney to address your specific situation.

Helpful hints

• Start by consulting a lawyer who represents minors in settlements. Oregon courts often require independent review or a guardian ad litem.
• Consider a combination approach: a blocked account for immediate needs and an annuity or trust for long-term security.
• Choose an annuity issuer with strong financial ratings. Check the insurer’s license at the Oregon Division of Financial Regulation.
• Get full written copies of any annuity contract, trustee agreement, or court order before closing the settlement.
• Ask about fees, commissions, and any third-party compensation tied to purchasing the annuity. The court will evaluate reasonableness.
• Assess whether payments might affect means-tested benefits. If the child receives public benefits, talk to a benefits specialist before finalizing the payment schedule.
• Keep detailed records and be prepared for periodic court accountings if a conservator or trustee is in place.
• If you are not the child’s parent, expect stricter scrutiny and a higher likelihood of required court petitions and approvals.