1. Scope of This Listicle
· Examines Qualified Settlement Funds and “Qualified Settlement Trusts.”
· Covers definitions, practical applications, implementation, and real-world consequences.
2. Target Audience
· Beneficial for financial consultants and directly involved parties.
· Provides information on how to utilize QSF benefits effectively in settlement agreements.
3. QSF vs. Qualified Settlement Trust
· A Qualified Settlement Trust can potentially be considered a QSF.
· The key is meeting criteria set by 26 USC § 468B and 26 CFR § 1.468B-1, regardless of the name of the trust.
4. QSF Establishment
· A government authority must be established as a QSF.
· Allows defendants to place payments into the trust and receive immediate liability release.
5. Main Attributes of a QSF
· Government authorization and ongoing jurisdiction.
· Resolves demands related to offenses, contract breaches, or illegal transgressions.
· Asset segregation from the transferor.
6. Advantages of QSFs
· Valuable in resolving various legal disputes (personal injury, product liability, etc.).
· Removes conflicts of interest by the attorney.
· Allows plaintiffs to accrue interest during dispute resolution.
· Relieves defendants of legal battles while addressing liens and concerns.
7. Real-World Applications
· Used in high-profile cases like the Volkswagen “Dieselgate” scandal.
· Employed in California’s wildfire settlement administration.
· Beneficial in complex cases like wrongful death involving one or more minors.
8. Conclusion
A Qualified Settlement Trust can be a Qualified Settlement Fund if properly approved by a governmental authority according to 26 CFR § 1.468B-1. For that matter, the name of the trust matters little; it could even be called a 468B trust, qualified settlement account, QSF account, or even QSF trust. Platforms like eastern Point Trust Company’s QSF 360 provide for a turn key, low cost, online solution – as quick as one business day.
In summary, QSFs provide many benefits that enhance the settlement process for all parties, even in smaller settlements. By leveraging Qualified Settlement Funds, attorneys offer their clients improved financial results.
