§ 1206. Disposition of proceeds of claim of infant, judicially
declared incompetent or conservatee. Except as provided in EPTL 7-4.9,
any property to which an infant, a person judicially declared to be
incompetent or a conservatee is entitled, after deducting any expenses
allowed by the court, shall be distributed to the guardian of his
property, the committee of his property or conservator to be held for
the use and benefit of such infant, incompetent, or conservatee except
that:

(a) in the case of an infant who is married to and resides with an
adult spouse, the court may order that the property be distributed to
such adult spouse for the use and benefit of the infant; or

(b) if the value of the property does not exceed ten thousand dollars
the court may order the property distributed to a person with whom such
infant, incompetent or conservatee resides or who has some interest in
his welfare to be held for the use and benefit of such infant,
incompetent or conservatee; or

(c) the court may order that money constituting any part of the
property be deposited in one or more specified insured banks or trust
companies or savings banks or insured state or federal credit unions or
be invested in one or more specified accounts in insured savings and
loan associations, or it may order that a structured settlement
agreement be executed, which shall include any settlement whose terms
contain provisions for the payment of funds on an installment basis,
provided that with respect to future installment payments, the court may
order that each party liable for such payments shall fund such payments,
in an amount necessary to assure the future payments, in the form of an
annuity contract executed by a qualified insurer and approved by the
superintendent of financial services pursuant to articles fifty-A and
fifty-B of this chapter. The court may elect that the money be deposited
in a high interest yield account such as an insured "savings
certificate" or an insured "money market" account. The court may further
elect to invest the money in one or more insured or guaranteed United
States treasury or municipal bills, notes or bonds. This money is
subject to withdrawal only upon order of the court, except that no court
order shall be required to pay over to the infant who has attained the
age of eighteen years all moneys so held unless the depository is in
receipt of an order from a court of competent jurisdiction directing it
to withhold such payment beyond the infant's eighteenth birthday.
Notwithstanding the preceding sentence, the ability of an infant who has
attained the age of eighteen years to accelerate the receipt of future
installment payments pursuant to a structured settlement agreement shall
be governed by the terms of such agreement. The reference to the age of
twenty-one years in any order made pursuant to this subdivision or its
predecessor, prior to September first, nineteen hundred seventy-four,
directing payment to the infant without further court order when he
reaches the age of twenty-one years, shall be deemed to designate the
age of eighteen years; or

(d) the court may order that the property be held for the use and
benefit of such infant, incompetent or conservatee as provided by
subdivision (d) of section 1210.