QUALIFIED SETTLEMENT FUNDS
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WHAT IS A QUALIFIED SETTLEMENT FUND (468B TRUSTS)?
A qualified settlement fund (QSF) is a 468B Trust that can be used to help conclude mass tort litigation or other multi-claimant class action lawsuits. Upon case conclusion, the QSF holds proceeds from the settlement to afford the involved parties (claimants, attorneys or law firms) the necessary time to determine their individual financial plans.
HOW DOES IT WORK?
When a QSF is implemented, the defendant pays the agreed settlement amount into a trust, or trust-like account, and is thereby released from the claim and any further proceedings.
The defendant is then able to utilize that lump sum payment as an immediate and favorable tax deduction.
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WHAT ARE THE BENEFITS OF THIS OPTION?
With the settlement funds deposited safely into a protected account, the claimants can now properly, and individually, explore the most suitable and beneficial settlement options to fit each of their needs. Claimants do not have to make decisions simultaneously and are not subject to delays caused by issues that might arise with co-claimants. QSF’s are also highly beneficial to the plaintiff attorney(s) on the case. Upon case conclusion, they also have the opportunity to individually explore the benefits of fee deferral strategies through traditional structured settlement annuities and/or other market-based structured settlement options.
Contact a CMC Benefit Solutions Settlement Consultant today!