Do Minors Pay a Lower Attorney Fee in Iowa?

By the FigureMyTax Editorial Team · How we calculate

We found no Iowa statute that caps injury contingency fees or sets a lower rate for a child. The fee comes from your written agreement and reduces the net the child receives.

What we looked for

We searched the Iowa provisions on minors' money, liens and limitation periods and found no percentage cap on a contingency fee and no separate fee rule for a minor. We did not read the Iowa Rules of Professional Conduct or court rules, so we cannot say what they require of a fee agreement.

Court review

If a conservator is appointed, the court may order an independent attorney investigation before authorizing a compromise, with a reasonable attorney fee taxed as a cost of the conservatorship (Iowa Code 633.648). Ask your lawyer what fee information the court will see.

A worked example

On a $60,000 settlement with a one-third fee ($20,000), $2,500 in costs and $8,000 in medical bills and liens, the child's net is $29,500. At 25% the fee is $15,000 and the net $34,500. The Iowa minor's settlement calculator lets you change the fee. Because the $50,000 line in section 633.555 applies to money due to the child, a smaller net can keep the settlement in the simple custodial route.

Other amounts that come out

Costs, medical bills and liens, and any guardian ad litem fee reduce the child's share. Iowa hospitals and subrogated insurers bear a pro rata share of your costs of recovery. See what a lien can take from a settlement.

Ask before you sign

Ask for the fee agreement in writing, whether the percentage is calculated before or after costs, and what the court will be told. Then read how the child's money can be held.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Iowa's rules apply to your specific case with a licensed Iowa attorney.