When a child sexual abuse case settles or ends in a civil verdict, survivors and their families often face a new question: How should the financial compensation be managed to ensure long-term protection and support?

Courts often approve structured settlements for minors, ensuring their needs are met over time. This provides stability, limits access by untrustworthy parties, and supports long-term recovery.

At O’Brien Law Firm, attorney Grant Boyd guides families through every stage of a civil abuse claim, including how compensation is safely structured and accessed. The goal is to help survivors rebuild their futures with dignity and security.

What Is a Structured Settlement?

A structured settlement is a court-approved plan that distributes compensation over time rather than as one lump sum. This approach is common in cases involving minors or individuals with ongoing medical, educational, or psychological needs.

Instead of receiving all the money at once, the funds are typically placed in:

  • Annuities, which provide scheduled payments over years or decades
  • Trusts, which allow a parent or guardian to oversee spending for approved purposes
  • Blocked accounts, where funds are preserved until the child reaches adulthood or another triggering event

These tools work together to protect the child’s well-being and ensure the money is used for its intended purpose: recovery, health, and opportunity.

Why Are Structured Settlements Used in Child Abuse Cases?

In Missouri, courts have a duty to act in the best interests of a minor. When abuse settlements involve children, judges rarely allow unrestricted cash payments. Structured settlements offer several key benefits:

1. Protection from Misuse

Unfortunately, there are situations where family members, guardians, or others may try to access the child’s compensation for personal use. Structured settlements limit access and often require court approval for withdrawals.

2. Stability and Predictability

Rather than risk the entire settlement being spent quickly or mismanaged, structured payments create a steady stream of support. This can help cover therapy, education, living expenses, and future goals.

3. Tax Advantages

Structured settlements are typically tax-free. Interest earned within annuities or trusts also avoids taxation in many cases, increasing the long-term value of the award.

4. Emotional Distance

Receiving a large lump sum can sometimes create new stress for survivors or their families. A structured approach removes the burden of managing sudden wealth and allows the family to focus on healing.

Types of Financial Structures Used in Missouri Abuse Cases

When a child receives a civil settlement due to sexual abuse, the court takes extra precautions to ensure that the funds are protected, responsibly managed, and used to directly support the child’s well-being. Several types of financial structures may be used, depending on the child’s age, the size of the settlement, and any unique health or developmental needs. Below are the most common tools used in Missouri child abuse settlements.

Annuities

An annuity is a financial product, often purchased through an insurance company, that provides scheduled payments over a period of time. This is one of the most commonly used tools in structured settlements involving children because it creates long-term financial security.

Instead of giving a child or their family a lump sum, the money is converted into guaranteed payments that are tailored to key life milestones. These may include:

  • Monthly or annual payments to cover ongoing mental health therapy or medical care
  • A one-time disbursement at age 18 to assist with college tuition or vocational training
  • A larger payout at age 25 to help with independent living, such as housing or transportation
  • Periodic installments over the survivor’s lifetime for long-term support

These payments can be customized to meet anticipated needs and can even include cost-of-living adjustments over time. Annuities are also tax-free in most abuse cases, allowing families to maximize the value of the compensation.

Special Needs Trusts

If the child has been diagnosed with a disability, mental health condition, or requires specialized care due to the trauma they experienced, a special needs trust may be established.

This type of trust holds the settlement funds but is designed in a way that does not interfere with eligibility for public assistance programs such as:

  • Medicaid
  • Supplemental Security Income (SSI)
  • Housing or food assistance programs

Funds from a special needs trust can be used to pay for expenses that improve quality of life but are not covered by government programs. Examples include:

  • Private therapy or specialized counseling
  • Adaptive equipment or assistive technology
  • Educational services or tutoring
  • Transportation to medical appointments
  • Hobbies, travel, or recreational activities that support recovery

These trusts must be managed by a trustee who follows strict legal guidelines to ensure the money is used appropriately and in compliance with benefit program rules.

Minor’s Trusts or Blocked Accounts

In cases where the survivor is still a minor and does not require a long-term annuity or special needs trust, courts may direct the settlement funds into a minor’s trust or a blocked account.

A blocked account is a simple arrangement in which funds are deposited into a bank account that cannot be accessed without court approval. These accounts are often used when the settlement amount is modest or when no ongoing disbursements are immediately needed.

Funds are typically frozen until the minor reaches the age of majority, which is usually age 18 in Missouri. However, the court may choose to extend that to age 21 or beyond in certain cases. During that time, a parent or guardian may file a request with the court to access part of the funds for:

  • Counseling or therapy
  • Educational expenses or school supplies
  • Medical bills
  • Other needs directly tied to the child’s recovery or well-being

This structure provides strong safeguards against misuse or exploitation while still allowing the court to approve necessary expenses.

These financial arrangements are not one-size-fits-all. In many cases, families may use a combination of these tools to balance short-term needs and long-term planning. For example, a portion of the settlement may go into a blocked account for future education, while another portion is used to purchase an annuity that covers therapy costs over the next ten years.

Grant Boyd collaborates with financial advisors, trust officers, and guardians to ensure each settlement meets the child’s long-term needs.

What Can the Settlement Money Be Used For?

Structured settlement funds are specifically intended to support the survivor’s well-being and future development. The purpose is not just to provide financial compensation for what happened, but to ensure the child has the tools and resources needed to move forward in a healthy, stable, and empowered way. Every plan must be approved by the court, which closely examines how the funds will benefit the child over time.

Below are some of the most common and impactful ways structured settlement funds are used:

Mental Health Therapy

Therapy is often one of the most urgent and ongoing needs after abuse. Structured settlements frequently allocate money for:

  • Individual counseling with trauma-informed therapists
  • Group therapy or support groups for survivors
  • Psychiatric care, if medication or specialized treatment is needed
  • Family therapy to help parents and siblings process the trauma together

Access to consistent, quality mental health care is essential for helping a survivor manage PTSD, anxiety, depression, or other emotional effects of the abuse. Funds can be organized to provide therapy over an extended period, often continuing into adulthood, acknowledging that the process may take time.

Medical and Dental Care

In some cases, abuse results in physical injury or conditions that require medical attention. Even when there is no immediate physical harm, the long-term stress of trauma can lead to health problems, including sleep disorders, digestive issues, and chronic pain.

Settlement funds can be used for:

  • Emergency medical treatment
  • Long-term care or rehabilitation
  • Regular pediatric and adolescent care
  • Dental work, especially if neglect or trauma impacted oral health
  • Nutrition or wellness support as part of overall recovery

Having access to the best possible care ensures that the survivor’s body is supported as they work through emotional recovery.

Educational Expenses, Tutoring, and College Tuition

Abuse can disrupt a child’s ability to focus, attend school regularly, or perform academically. Some children fall behind due to anxiety, social withdrawal, or missed school days caused by court appointments or mental health challenges.

Settlement funds can provide:

  • Specialized tutoring to help the child catch up
  • Enrollment in private schools or programs better suited to their emotional needs
  • Testing accommodations, educational assessments, or learning evaluations
  • Assistance with college application fees and tuition
  • Support for trade school or career training programs

Education is a key part of reclaiming independence and confidence. Structured settlements help make sure that the survivor has access to opportunities that might otherwise be out of reach.

Housing, Transportation, and Job Training

As the survivor becomes an adult, structured settlements can help with important transitions into independent living. Funds may be scheduled to support:

  • Safe housing, whether it’s rent assistance, a down payment, or transitional housing
  • A reliable car, public transportation, or ride services to medical or work-related appointments
  • Career coaching or job training
  • Technology and tools needed for school or employment

These supports help the survivor gain control over their future and feel secure in their ability to thrive on their own terms.

Daily Living Costs, When Appropriate

In some cases, families may request that a portion of the funds be used to assist with everyday needs, especially when the abuse has created a financial strain. With court approval, structured settlements can help pay for:

  • Clothing and hygiene products
  • School supplies
  • Groceries and nutritional support
  • Safe recreational activities that promote healing and development

While the focus is on long-term care, courts recognize that some immediate support is also necessary to stabilize the family and provide a nurturing environment for the child.

Ultimately, the goal of a structured settlement is not just financial compensation. It is to provide a path to healing, growth, and stability. Courts prioritize structured settlement plans that consider the survivor’s financial future along with their emotional, educational, and social development. With the right plan in place, survivors can build a strong and meaningful future that is shaped not by what happened to them, but by how they recover and move forward.

Can the Settlement Be Reopened or Changed Later?

In most cases, a settlement is final once approved. However, families may return to court to request modifications in certain circumstances, such as:

  • A significant change in the survivor’s health or educational needs
  • A need for early access to funds for urgent expenses
  • Evidence that the current plan is no longer in the child’s best interest

Attorney Grant Boyd can help evaluate whether a modification is possible and petition the court if needed.

What Families Should Know Before Accepting a Settlement

Before agreeing to a structured settlement in a child abuse case, it is important to understand:

  • How the funds will be distributed
  • Who will manage the money
  • What expenses are allowed
  • What court approvals are required
  • Whether professional trustees or financial advisors are needed

A skilled attorney will help you review these details and advocate for terms that reflect your child’s unique needs.

Why Legal Guidance Matters

Structured settlements may sound complex, but they are designed to safeguard the future of abuse survivors. With the right legal team, families can be confident that the compensation secured through a civil claim will be used wisely and safely.

At O’Brien Law Firm, we believe that justice includes long-term support. Grant Boyd works closely with families to craft structured settlements that reflect compassion, security, and accountability. Every survivor deserves the chance to heal without fear of financial uncertainty.

Contact O’Brien Law Firm to Discuss Your Child’s Case

If your family is considering a civil claim for child sexual abuse in Missouri, or you’ve received a proposed settlement, we can help. Contact O’Brien Law Firm for a free, confidential consultation. We’ll walk you through every option and ensure your child’s future is protected.