Once a settlement is reached, it is important that the claimant has the time to make well-informed decisions about how to handle the recovery. In order for that to occur, neither the plaintiff law firm nor the claimant can have constructive receipt of the settlement funds. But what happens when there are multiple claimants involved—how can you ensure that each claimant has time to make the best decisions? That’s where a Qualified Settlement Fund (“QSF”; sometimes referred to as a 468B Trust) comes in.
What is a Qualified Settlement Fund– and How Does It Work?
A Qualified Settlement Fund is an account that holds the proceeds from a settlement involving multiple claimants. The defendant pays the money to the QSF, releasing the defendant of liability. This process protects against any future insolvency of the defendant, getting the money into a fund, account, or trust for safekeeping. Because the money is held in a fund, the plaintiffs and law firm(s) do not have constructive receipt. The fund administrator can then distribute attorney’s fees and claimant allocations as each claimant is ready to proceed.
When Does a QSF Make Sense?
Many attorneys involved in multi-claimant cases have valid concerns about unreasonable delays or expenses. The QSF allows claimants the most valuable thing they could ask for after their case is settled—time. Claimants without unresolved issues can receive their settlement proceeds without worrying about delays. Claimants with settlement-related issues have the time they need to get the issues resolved.
If you expect to come across any of the following situations, you may want to consider a QSF:
How Can I Get More Information About QSFs?
The Settlement Alliance-WEST has partnered with The Settlement Alliance, an experienced Qualified Settlement Fund Administrator. To date, The Settlement Alliance has administered 50+ qualified settlement funds for over 70,000 claimants, totaling more than $3 billion in settlement proceeds. We have a dedicated government benefits team available to answer any questions that claimants may have about the impact of the settlement on their entitlement and/or needs-based benefits. TSA-WEST also provides printed educational materials on government benefits, structured settlements, bankruptcy, and probate issues. Our access to local elder law, bankruptcy, and probate attorneys across the country provides claimants with local experts they can trust.
For more information about our Qualified Settlement Fund services, contact us today at email@example.com or 800-354-2258.