Do Minors Pay a Lower Attorney Fee in Maryland?

By the FigureMyTax Editorial Team · How we calculate

We found no Maryland statute that caps injury contingency fees or sets a lower rate for a child. The fee comes from your written agreement, and because the "net sum" that triggers the $5,000 trustee rule is measured after the attorney's fee and expenses, it decides which route applies.

What we looked for

We searched the Maryland provisions on payments to minors, 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 Maryland Rules of Professional Conduct, so we cannot say what they require of a fee agreement.

How fees enter the test

The "net sum" is the net amount due the minor after the deduction of the attorney's fee and expenses (Estates and Trusts 13-401). A higher fee lowers it, and a net sum of $5,000 or more triggers the statutory trustee rule (13-403).

A worked example

On a $60,000 settlement with a one-third fee ($20,000) and $2,500 in costs, the net sum is $37,500, well above $5,000, so the trustee rule applies. The child's share after $8,000 of medical bills and liens is $29,500. At a 25 percent fee the net sum is $42,500 and the child's share $34,500. The Maryland minor's settlement calculator lets you change the fee.

Fees from the trust

When the trustee petitions to withdraw money, the court may direct a reasonable attorney fee and the costs of the proceeding, but no fee or commission to the trustee (13-406(f)).

Ask before you sign

Ask for the fee agreement in writing, whether the percentage is calculated before or after costs, and whether medical liens count as "expenses." Then read how the statutory trust works and see what a lien 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 Maryland's rules apply to your specific case with a licensed Maryland attorney.