Qualified Settlement Funds (468B Trusts)

QUALIFIED SETTLEMENT FUNDS (468B TRUSTS)

A Qualified Settlement Fund (QSF), also referred to as a 468B Trust, is an exceptionally useful settlement tool that allows time to properly resolve mass tort litigation and other cases involving multiple claimants. When a QSF is created and funded, the defendant makes a payment into the trust account in exchange for a full release of all claims.

Qualified Settlement Funds: Benefits for Both Sides

In addition to the release of liability, the defendant is eligible to receive an immediate tax deduction for the payment. In the meantime, claimants gain the time they need to receive a proper settlement consultation and to determine their best settlement options.

The additional time also allows for lien resolution and the preparation of required documentation without the time pressures of litigation. Claimants without any outstanding issues will not have to wait for their co-claimants’ issues to be resolved in order to receive their settlement distribution.

Qualified Settlement Fund Services

Sage Settlement Consulting provides qualified settlement fund administration services, including:

  • Preparing all motions, court orders, and documents needed to establish and administer the fund
  • Generating client closing statements and providing accounting for the fund
  • Disbursement of all claimant payments, including directing funding of Special Needs Trusts and/or structured settlements
  • Live call center assistance
  • Attorney fee and expense disbursement
  • Executing qualified assignments
  • Managing payment of finalized liens
  • Printed educational materials for claimants
  • National bankruptcy and probate coordination
  • Fraud protection/check validity verification
  • Daily account reconciliation, monthly financial accounting, and reporting
  • Treasury management and investment of funds within the QSF
  • Tax return filings and 1099 issuance
  • Access to local elder law and probate attorneys across the country
  • Closing of the fund and interest reconciliation

How a QSF Works in Mass Tort Litigation

  1. Settlement Agreement Reached – The defendant agrees to settle the case, and the court approves the creation of a QSF.
  2. Defendant Transfers Funds – Settlement funds are deposited into the QSF, releasing the defendant from liability.
  3. Claims Are Processed – Attorneys, financial advisors, and settlement administrators review claims and determine payouts.
  4. Payments Are Distributed – Funds are allocated to claimants, attorneys, and any structured settlements.

Why Work with Sage Settlement Consulting?

At Sage Settlement Consulting, we specialize in managing Qualified Settlement Funds for mass tort cases, ensuring that both attorneys and plaintiffs maximize financial benefits while reducing administrative burdens. Our services include:

✔ QSF Setup & Compliance – We establish and manage QSFs in full compliance with IRS regulations and court requirements.
✔ Tax-Efficient Payout Planning – We work with plaintiffs to create structured settlements and minimize tax exposure.
✔ Attorney Fee Structuring – We help attorneys defer income for tax benefits and financial planning.
✔ Government Benefit Protection – We structure distributions to help claimants maintain Medicaid and SSDI eligibility.

Related Readings:

For more information about Qualified Settlement Funds, contact us today.

FAQs: Qualified Settlement Fund

Who benefits from a Qualified Settlement Fund?

Both plaintiffs and attorneys benefit. Plaintiffs get controlled, tax-efficient payouts, while attorneys can manage fees and reduce immediate tax liabilities.

Are QSFs only used for mass tort cases?

No, QSFs can also be used in class actions, personal injury settlements, and environmental litigation.

How long can settlement funds remain in a QSF?

There is no set time limit, but the goal is to distribute funds efficiently while optimizing tax and financial planning for claimants.

Does using a QSF delay payments to plaintiffs?

No, a QSF actually helps speed up the distribution process while allowing customized payout options for claimants.

How do I set up a QSF for my case?

At Sage Settlement Consulting, we handle the entire QSF setup process, ensuring compliance and efficient management. Contact us for a consultation.

See What clients Are Saying

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