<p>Our high school junior was injured in an accident. The insurance company is happy to settle, as are we. They are (maybe) offering a structured settlement to be paid post-college. Our lawyer is wary as he thinks the future proceeds will still be counted as we apply for financial aid. Does anyone have experience with this? Are the proceeds in a structured settlement invested for us and can we control that investment? We have a 529 so could the money be put there now and is that a good idea? Don;t know if check would be written to son or us. Does the insurance company benefit in a structured settlement? Will the expensive private colleges want to know about that money whether he receives it now or later? Is it considered income? I ask this prior to our meeting with the lawyer, so these questions will be asked of him as well. Many thanks.</p>
<p>you need to see a professional regarding this -- no question about it. And someone who knows financial aid (profile and FAFSA).</p>
<p>From what I know -- yes, it will count as income. Assets in your name are better than assets in students name. Profile will want to know everything. Assets that are not available until after college will be expected to be borrowed against.</p>
<p>Those are some interesting questions. Some think it's never good when your problems are interesting to other people -- it is much better to have an ordinary situation where the answer is clear and easy to find. On the other hand, if you are in a unique situation you can generously interpret the rules in your favor, and if questioned your decision is defensible, even if someone in authority disagrees with it.</p>
<p>I was in an accident many many years ago. My settlement was NOT considered income. It was for damages, and paid medical bills....it was to compensate me for losses. HOWEVER, I would think that if this money is in your bank account, it would be counted as an asset. I agree that you need to speak to a professional about this. This is not a question for a message board.</p>
<p>Hello,
I am in a similar situation; I have not yet settled, but the payme
is held by a court appointed guardian until the child is 18. And then they receive the money. That is how GEICO works, anyway.
My child will not get the funds until AFTER the first FAFSA is sent in.
Linda</p>
<p>Linda, check with the court or guardian exactly how those funds will be held. If they are held in trust for your child, you will have to report them even if he or she doesn't actually get the money until after the FAFSA/Profile are filed. The forms specifically ask if he/she has an interest in or is a beneficiary of a trust.</p>