Do Minors Pay a Lower Attorney Fee in Texas?

By the FigureMyTax Editorial Team · How we calculate

We found no Texas statute that caps injury contingency fees or sets a lower rate for a child. Because the court must approve a child's settlement, it sees the terms, including the fee.

What we looked for

We searched the Texas provisions on minors' settlements, management trusts, 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 Texas Disciplinary Rules of Professional Conduct, so we cannot say what they require.

Court review

The court must approve a next friend's compromise (Rule 44), and a guardian ad litem may be appointed where the next friend's interest may conflict with the child's (Rule 173). We did not read a rule on what fee information the court requires, so ask your lawyer.

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 percent the fee is $15,000 and the net $34,500. The Texas minor's settlement calculator lets you change the fee. The figures are your inputs, not court-set amounts.

Other amounts that come out

Costs, medical bills and any guardian ad litem fee reduce the child's share. A hospital lien is the lesser of its charges and 50 percent of the recovery; see what claims can take from a settlement.

Ask before you sign

Ask for the fee agreement in writing and what the court will be told. If the court creates a management trust (Tex. Prop. Code 142.005), the trustee's compensation is paid from the trust with court approval. Then read how management trusts work.

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