When a Judge Must Approve a Minor's Settlement in Wyoming

By the FigureMyTax Editorial Team · How we calculate

Wyoming does not always require court approval. A parent, guardian or conservator may settle a child's claim without a judge if the claim is not more than $25,000 excluding fees, costs and expenses, no guardian was previously appointed, the child is not emancipated, the money goes to the parent or into a trust or account, and an affidavit is signed.

The shortcut

W.S. 14-2-202(c) lets a parent, guardian or conservator settle or compromise a minor's claim without first seeking court approval and without first establishing a guardianship or conservatorship if five conditions are met: no guardian or conservator was previously appointed; the minor is not emancipated; the total amount to be paid to the minor is not greater than $25,000; the money is paid to the parent, guardian or conservator or into a trust or other account for the minor; and the parent attests in an affidavit that after reasonable inquiry the claim is not more than $25,000 excluding fees, costs and other expenses, and that the minor will be fully compensated or is unlikely to obtain more.

Effect

Under subsection (d), a settlement that follows the shortcut binds the minor on the signature of the parent, guardian or conservator, without further court approval or review, with the same force as if the minor were a competent adult.

Protection for the child

Subsection (e) gives the minor a cause of action against a parent, guardian or conservator who fails to apply the funds for the minor's sole benefit, fails to inquire into the claim, or falsely states that the claim is not more than $25,000.

Above $25,000

The shortcut is unavailable, and a conservator acts under the conservatorship statutes. A court may order an independent investigation by an attorney before authorizing a compromise of a ward's personal injury claim (W.S. 3-3-608). We did not read the rest of the conservatorship rules.

Deadlines

A minor may sue within three years after the disability is removed or within the ordinary period, whichever is greater (W.S. 1-3-114), and injury actions have four years (1-3-105), so about age 21. Ask an attorney before assuming you have time. See how the money is held and run your numbers in the Wyoming minor's settlement calculator.

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