SETTLEMENT PRESERVATION TRUSTS
Protecting Settlement Proceeds. Supporting Long-Term Stability.
Built to Protect — Designed to Adapt
Settlement Preservation Trusts are structured to balance protection with flexibility—helping ensure funds are used responsibly while still supporting real life needs.
A Settlement Preservation Trust is designed to help protect settlement proceeds for individuals and families following a personal injury or similar life altering event.
Typically established as an irrevocable grantor trust, its purpose is to preserve settlement assets, prevent premature or inappropriate use, and provide long-term financial flexibility as a beneficiary’s needs evolve.
Key features include:
- Protection against wasteful or impulsive spending
- Periodic distributions that cannot be sold or assigned
- Flexibility to adjust distributions as circumstances change (health, employment, life events)
This approach helps ensure settlement proceeds continue to support the beneficiary’s long-term stability and well-being.
Professional Trust Administration You Can Rely On
Capital First Trust Company serves as trustee and administrator, providing consistent oversight throughout the life of the trust.
OUR RESPONSIBILITIES INCLUDE:
Trust administration and ongoing compliance
Asset custody and transaction processing
Income and principal accounting
Distribution administration
Tax reporting and coordination
Our team ensures the trust remains aligned with its purpose—while adapting to the beneficiary’s evolving needs.
In many cases, a Minor’s Settlement Preservation Trust combines asset protection with flexibility—allowing funds to support the child through different life stages while avoiding a lump-sum distribution at adulthood.
A Core Focus of Our Practice
No two settlement situations are the same.
Whether planning before trial, protecting funds for a minor, or administering a long-term trust after settlement, Capital First Trust Company provides customized solutions designed to preserve assets and support long-term stability.
OUR APPROACH IS CENTERED ON:
Proactive, attentive service
Sensitivity to the needs of beneficiaries and families
Collaborative coordination with planners and legal counsel
The result is a trust structure built for protection, flexibility, and confidence—both today and in the years ahead.
Frequently asked questions about Settlement Preservation Trusts
If you’re interested in having a proactive and supportive member like Capital First as part of your team, don’t hesitate to contact us. In the meantime, here are some frequently asked questions you might find helpful.
Any time there’s concern about managing settlement proceeds over the long term—especially when the beneficiary may need structure, protection, or guidance in how funds are used.
Yes. The trustee can make distributions based on the trust terms and the beneficiary’s situation. The goal is to balance access with long-term sustainability.
Absolutely. No two settlements are the same, and the trust can be structured around the beneficiary’s age, needs, family situation, and anticipated future expenses.
This is typically a team approach, with attorneys, settlement planners, the trustee, and sometimes financial advisors working together to design and implement the structure.
The trustee takes over ongoing administration, handling distributions, compliance, reporting, and coordination with the beneficiary and their advisors.
Yes. Many plans combine both guaranteed payments from a structured settlement along with trust managing lump sum proceeds.
Both.
- Families get protection and long-term support
- Attorneys and planners get a structure that improves outcomes and continuity
Many families want to avoid a full lump sum at age 18. A Minor’s Trust allows distributions to continue in a more structured way beyond that age, based on maturity and needs.
A trustee manages the assets until the child reaches specified ages or milestones. This ensures consistent oversight and removes the burden from parents or guardians.
Parents remain responsible for basic support, but the trust can help with additional expenses such as education, medical needs, or quality-of-life items based on the trust terms.
Often, yes—especially at the outset. Many minor settlements involve court oversight, which may include required reporting or approval of certain actions.
A Pre-Trial Trust can demonstrate to the defense and the court that any future award will be responsibly managed, helping strengthen the overall case.
Yes. In some cases, the trust (or trustee) may be substituted or participate as part of the legal proceedings, depending on the structure and jurisdiction.
Not exclusively, but it’s most commonly used where there are concerns about jury perception, beneficiary circumstances, or the need to demonstrate responsible post-settlement management.
This is typically a team approach. Attorneys, settlement planners, the trustee, and sometimes financial advisors all working together to design and implement the structure.
The trustee takes over ongoing administration, handling distributions, compliance, reporting, and coordination with the beneficiary and their advisors.
Yes. Many plans combine both guaranteed payments from a structured settlement along with a trust managing lump sum proceeds.
Both.
- Families get protection and long-term support
- Attorneys and planners get a structure that improves outcomes and continuity