Why and When a Court Approves a Minor's Settlement in Kansas

By the FigureMyTax Editorial Team · How we calculate

A Kansas person with legal custody of a minor may settle the child's claim without court approval if no guardian or conservator has been appointed and the amount due to the child, after medical expenses, liens, attorney fees and costs, is $25,000 or less. Above that, the no-court procedure is not available.

The rule

K.S.A. 38-152(a) lets a person having legal custody of a minor settle or compromise the minor's claim if (1) no guardian or conservator has been appointed; (2) the total settlement proceeds due to the minor, after reduction by all medical expenses, medical liens, all other liens and reasonable attorney fees and costs, are $25,000 or less; (3) the money is paid as the statute requires; and (4) the person completes an affidavit.

The affidavit

The affidavit states that the person has made reasonable inquiry and, to the best of the person's knowledge, the minor will be fully compensated, or there is no practical way to get more from the other party, and that the person understands the law requires the money to go into a restricted account or an annuity. The attorney keeps it for five years.

Effect of a compliant settlement

A signed agreement that complies is binding on the minor without court approval or review, has the same effect as if the minor were an adult, fully releases the claims, and may be relied on by a bank or other entity in place of a court order (38-152(e)). A person who settles in good faith is not liable to the minor for claims arising from the settlement.

Above $25,000, or if you prefer a court

Nothing prevents anyone acting for the minor from filing for guardianship, limited guardianship or conservatorship and asking the court to approve the settlement and oversee the money, or from asking the district court to approve the settlement, the affidavit or the disposition of the proceeds, and the court awards the docket fees to the minor (38-152(g) and (h)). Above $25,000, the no-court procedure does not apply.

Who is a minor

The period of minority extends to eighteen, except that a person sixteen or older who is or has been married is of the age of majority for contracts, property rights, liabilities and capacity to sue and be sued (K.S.A. 38-101).

Deadlines

A person under 18 when the claim accrued may sue within one year after turning 18, and in no event more than eight years after the act giving rise to the claim (K.S.A. 60-515). Ask an attorney before assuming you have time. See how the money must be held and run your numbers in the Kansas minor's settlement calculator.

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