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:
Art. 4521.Payments to Minor
Book VII. Special Proceedings · Title VII-A. Administration of Court Judgment In Favor of Minor · Chapter 1. Administration of Court Judgment In Favor of Minor · Last amended 2024 · Last verified July 30, 2026
In one sentenceArticle 4521 lets a court approving a judgment or settlement payable to a minor order the funds paid into the court registry, invested, placed in a qualifying trust, or paid through a structured settlement, offering a targeted way to manage judgment proceeds without opening a full tutorship.
Full Text of Art. 4521
(1) That the funds be paid directly into the registry of the court for the minor's account, to be withdrawn only upon approval of the court. Withdrawn funds shall be invested directly in an interest- bearing investment as approved by the court unless the court for good cause approves another disposition.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 or, for a beneficiary who is disabled as defined in 42 U.S.C.1382c(a)(3), in a trust qualified under 42 U.S.C.1396p(d)(4)(C) in accordance with the law of any state. The trust instrument shall name the minor as sole beneficiary of the trust, shall name a trustee, shall impose maximum spendthrift restraints, and may allow the trust to last for the lifetime of the beneficiary. Except for trusts qualified under 42 U.S.C.1396p(d)(4)
(A) or 1396p(d)(4)(C), the trust shall, however, be subject to termination at the option of the beneficiary upon attaining the age of majority. If the minor fails to attain majority, the trust shall be subject to termination at the option of his heirs or legatees. The court shall not order funds that 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.
Amendment History
Amended by Acts 2024, No. 163, §1, eff. 8/1/2024. Amended by Acts 2019, No. 17, §2, eff. 5/24/2019. Amended by Acts 2019, No. 17, §1, eff. 5/24/2019. Amended by Acts 2018, No. 607, §1, eff. 8/1/2018. Amended by Acts 2015, No. 260, §2, eff. 1/1/2016. Added by Acts 1984, No. 296, §1; Acts 2008, No. 716, §1.
Plain-English Summary
A minor sometimes wins money through a lawsuit -- a settlement or a judgment for damages -- without anyone otherwise needing to manage the child's estate. Opening a full tutorship just to hold that one sum can be more machinery than the situation calls for. Article 4521 gives the court a narrower toolkit for that specific problem: approving how the judgment or settlement funds themselves are handled.
The court can order the funds paid into the registry of the court, withdrawable only with court approval and invested in an interest-bearing vehicle once withdrawn; invested directly in an interest-bearing investment the court approves; placed in trust under the Louisiana Trust Code, or, for a beneficiary who meets the federal disability definition, in a qualified special-needs trust recognized under federal law; paid out under a court-approved structured settlement with periodic payments backed by a financially responsible entity; or handled through any combination of those options. A trust used this way must name the minor as sole beneficiary, name a trustee, and impose maximum spendthrift restraints, and -- apart from certain federally qualified trusts -- must allow the minor to terminate it upon reaching majority, or the minor's heirs or legatees to terminate it if the minor does not reach majority. Louisiana also bars ordering a trust for an unemancipated minor in the legal custody of the Department of Children and Family Services when the judgment or settlement comes to less than fifty thousand dollars.
When a structured settlement with periodic payments is on the table, Article 4521 tells the court what to weigh before approving it: the minor's age and life expectancy, current and anticipated financial needs, income and estate tax implications, the effect on eligibility for government benefits, and the present value of the proposed arrangement along with how that value was calculated. Those factors keep the court focused on what serves the minor over time, not just the headline dollar figure.
Frequently Asked Questions
Does a minor who wins a lawsuit settlement need a tutor appointed to receive the money?
Not necessarily. Article 4521 lets the court approve how the funds are held or invested -- through the court registry, a direct investment, a trust, or a structured settlement -- without opening a full tutorship just to manage the proceeds.
What can a Louisiana court do with settlement money owed to a minor?
Order it deposited into the court registry, invested directly, placed in a qualifying trust, paid out under a structured settlement, or handled through a combination of those approaches.
Can settlement funds for a minor be placed in a trust?
Yes. The trust must name the minor as sole beneficiary, name a trustee, and impose maximum spendthrift restraints, and, with narrow exceptions, must be terminable at the minor's option upon reaching majority.
What factors does a court weigh before approving a structured settlement for a minor?
The minor's age and life expectancy, current and anticipated financial needs, tax implications, the impact on eligibility for government benefits, and the present value of the proposed payment arrangement.
Source & verification. Article text is reproduced verbatim from
the Louisiana Code of Civil Procedure (legis.la.gov). Enacted by the Louisiana Legislature.
Last verified July 30, 2026.
· Official source
Also known as: Louisiana minor settlement fundsArticle 4521 Louisianastructured settlement for minor Louisianacourt registry funds for minortrust for minor's judgment proceeds Louisiana