Do Minors Pay a Lower Attorney Fee in Kentucky?

By the FigureMyTax Editorial Team · How we calculate

We found no Kentucky statute that caps injury contingency fees or sets a lower rate for a child. The fee comes from your written agreement, and because it is subtracted before the $25,000 test, it can decide whether a court is needed.

What we looked for

We searched the Kentucky provisions on minors' settlements, 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 Kentucky Rules of Professional Conduct, so we cannot say what they require of a fee agreement.

How fees enter the test

The $25,000 line in KRS 387.278(1)(b) is measured after reduction by medical expenses, medical liens, other liens and reasonable attorney fees and costs. A higher fee lowers the net, and a net of $25,000 or less allows the no-court procedure.

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 net is $29,500, over $25,000, so the no-court procedure is not available. At a 40 percent fee ($24,000) the net is $25,500, still over. If medical bills and liens are $12,500 instead, the net at one-third is $25,000 and the no-court procedure applies. The Kentucky minor's settlement calculator shows which route applies.

Court review

If you ask the District Court to approve the settlement under 387.278(9), it can review the terms and the disposition of the proceeds. Ask your lawyer what fee information it will see.

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 must be held and see what a claim can take from a settlement.

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