Detailed Answer
Short answer: In Wyoming, a personal injury settlement for a minor normally requires a court proceeding that protects the child’s interests. The court will review the proposed settlement, ensure it is fair and in the minor’s best interest, and enter an order approving how the money will be handled and distributed. Typical results include court approval combined with protective steps such as a blocked bank account, a court‑supervised guardianship or conservatorship, or a structured settlement annuity.
This article explains the common steps you and your lawyer will take in Wyoming, what judges look for, what paperwork you will need, and practical options for protecting settlement funds. This is general information only and not legal advice (see disclaimer at the end).
Legal background and where to check Wyoming law
Wyoming law requires courts to protect minors who bring claims or have claims brought on their behalf. Many of the specific procedures that apply to settlements for minors arise in the court’s probate and civil procedures. For the official text of Wyoming statutes and to search for statutes relevant to guardianship, minor settlements or conservatorship, use the Wyoming Legislature statutes page: https://wyoleg.gov/statutes/. For court forms and procedural information from the Wyoming Judicial Branch, see: https://www.courts.state.wy.us/. Also consult Title 3 (Probate) of the Wyoming Statutes for statutes governing guardianships and conservatorships: https://wyoleg.gov/statutes/compress/title03.pdf.
Step‑by‑step: How the court approval process usually works in Wyoming
- Hire an attorney experienced with minor settlements. A lawyer who handles minor settlements will prepare the petition, gather supporting documents, and argue to the court that the settlement is fair. If the minor has no parent or the parent is conflicted, the court may appoint a guardian ad litem (GAL) to represent the child’s interests.
- If necessary, appoint a guardian ad litem or conservator. A GAL is sometimes required in personal injury cases to evaluate the proposed settlement and recommend to the court whether it serves the minor’s best interest. If the court finds that the minor needs someone to manage money after approval, it can appoint a guardian or conservator under Wyoming probate statutes (see the probate statutes linked above).
- Prepare and file a Petition to Approve Compromise or Settlement. The attorney files a formal petition (sometimes called a petition to compromise a minor’s claim or petition for approval of settlement) in the court where the lawsuit was pending or in the probate/juvenile division that handles minor settlements. The petition usually asks the court to (a) approve the settlement amount, (b) approve attorney fees and costs, and (c) authorize how the settlement proceeds will be held and distributed.
- Include supporting evidence. The petition should be supported by documentary evidence such as the proposed settlement agreement and release, medical records showing injuries and projected future care needs, a statement of damages and expenses, any life care plan, explanation of how attorney fees were calculated, and a proposed plan for protecting the funds (blocked account, trust, structured settlement, or appointment of a conservator). Courts want enough information to judge fairness and future needs.
- Provide notice and allow objections. Wyoming courts require that interested parties receive notice of the petition. Notice requirements vary with the court and circumstances. The court will allow time for anyone with an interest (e.g., parents, insurers, creditors) to object.
- Attend a hearing. The court usually schedules a hearing. At the hearing the judge evaluates the settlement’s fairness, the reasonableness of attorney fees and costs, the accuracy of the factual record, and the proposed plan for managing funds for the minor. If the judge has questions, the parties or the GAL will respond.
- Court issues an approval order with specific instructions. If satisfied, the judge signs an order approving the settlement and directing how the funds will be handled—often requiring one or more protective steps (see next section). The order will typically authorize distribution consistent with the judge’s findings (for example, paying medical liens first, paying attorney fees, and placing the balance into a court‑protected account or naming a conservator/trust).
- Implement the court order and distribute funds as directed. After the order, the parties complete the settlement paperwork and the defendant/insurer issues checks. The funds are distributed exactly as the court ordered—this may mean payments to medical providers, attorney fee disbursements, and deposit of the remainder into a blocked account, structured settlement, or conservatorship account.
What judges consider when deciding whether to approve a minor’s settlement
- Whether the settlement amount is fair compared with likely trial recovery and risks of going to trial.
- Whether the settlement adequately compensates the minor for current and reasonably anticipated future medical care, therapy, special education, and lost future earning capacity (as applicable).
- Whether attorney fees are reasonable and supported by documentation (hours, contingency percentage, costs).
- Whether liens, subrogation claims, or outstanding medical bills have been properly addressed.
- Whether the plan for holding and distributing funds protects the minor’s long‑term interests (for example, blocked account, trust, or conservatorship).
Common protective options the court may order
- Blocked or restricted bank account: The court orders that funds be held in an account that cannot be accessed without further court approval.
- Structured settlement: Part or all of the proceeds purchase an annuity that pays the minor over time, which reduces the need for future court management.
- Trust: A trust (often a special needs or minor trust) is established with a trustee to manage distributions for the child’s benefit.
- Guardianship or conservatorship: The court appoints an adult to manage the funds under court oversight, usually subject to periodic accounting.
Typical documents you will need to file or bring to the court
- Filed petition for approval of settlement (prepared by counsel).
- Copy of the settlement agreement and proposed release.
- Medical records and bills; statements of future care needs (life care plan, if available).
- Attorney fee agreement and documentation of fees and costs.
- Evidence of any liens or subrogation claims and how they will be paid.
- Birth certificate for the minor and identification for parents or guardians.
- Proposed order and proposed mechanism for protecting funds (blocked account, trust documents, proposed conservator’s bond, or structured settlement contract).
Timeline and likely costs
Timing varies with court schedules, but expect several weeks to a few months from filing the petition to receiving approval. Preparation and notice periods add time. Costs include attorney fees (often contingent percentage but still subject to court approval), court filing fees, fees for a guardian ad litem if one is appointed, and potential bond or accounting costs if a conservator is appointed. Courts closely scrutinize contingency fee percentages and will reduce fees they deem unreasonable.
Helpful Hints
- Start planning early: ask your attorney about the court approval process before signing a settlement so the agreement includes any protections the court will require.
- Document future needs: thorough medical records and a life care plan strengthen a petition and reduce objections at the hearing.
- Address liens up front: resolve or propose a payment plan for health care or Medicaid liens before asking the court to approve the settlement.
- Consider a structured settlement: it can be an attractive way to preserve long‑term care funds and avoid future guardianship expense.
- Expect the judge to review attorney fees: keep detailed billing records and be ready to justify the contingency percentage or fee award.
- Use experienced counsel: an attorney familiar with Wyoming practice and with minor settlement petitions will save time and reduce the risk of rejection or delay.
- Check local rules and forms: courts may have local procedures and specific forms—visit the Wyoming Judicial Branch website for court‑specific rules and forms (https://www.courts.state.wy.us/).
When you should talk to an attorney
If you are negotiating a settlement for a child, speak with an attorney early. Even if the insurer offers a quick check, the offer may not cover future needs. An attorney can help evaluate offers, prepare the petition, and structure the settlement to meet the court’s approval standards.
Disclaimer: This article is for general informational purposes only. It does not provide legal advice, create an attorney–client relationship, or substitute for consultation with a licensed Wyoming attorney about your specific situation.