My Son's Settlement

[J_Mom]

What is the name of your state? Indiana

I posted here in the past about my son's case. His arm was cut by falling merchandise at a home improvement store, requiring scar revision surgery and physical therapy services. After gathering estimates for future Dr. visits and past medical bills, we determined that his medical expenses totalled a little over $10,000. After haggling with the insurance company for almost two years, we've finally agreed to a settlement of $16,000. Now, I'm supposed to decide how I want the money distributed. I will be asking for the $10,000 to cover the medical bills, but what is the best way to handle his $6,000 pain and suffering money? The insurance company is offering to do a structured settlement for it; or giving me the option of investing it for him myself. Either way, it's not going to be touched, until he turns 18. It will be his college fund. My question is this: Is the structured settlement the best way to invest it, since it will be exempt from taxes, while it's earning interest? How much would a $6,000 settlement earn in six years? He's twelve years old now.