Trust
Any number of types of trust can be used to help manage the funds from a tort action, the most common being a Special Needs Trust (SNT).
A SNT allows the plaintiff to maintain their eligibility for government benefits when the settlement proceeds may not be enough to cover their future care.
The government allows the settlement proceeds to be placed into a trust so that they remain eligible for benefits from among others Medicaid and Supplemental Social Income. Otherwise with a very small amount of assets the plaintiff can be disqualified from such benefits. By placing the funds in the trust the government considers them not to have been received.
These funds in trust can be used for future medical and personal needs and disbursed to a third party by the trustee.