STRUCTURED SETTLEMENT GUARDIAN AD LITEM

SB 282 requires courts to appoint a guardian ad litem (a court-appointed advocate) for anyone seeking to transfer their structured settlement payments (e.g., selling future payments for a lump sum). This guardian must independently assess whether the transfer is in the payee’s best interests, considering factors like their financial needs, dependents’ support obligations, impact on public benefits, and past settlement transactions. The bill directly affects individuals receiving structured settlements (often from injury or accident settlements) who wish to sell their future payments. The guardian’s evaluation, including reports filed before court hearings, aims to prevent potentially harmful transfers without requiring the payee to navigate complex legal processes alone.