Everything You Always Wanted to Know about Qualified Settlement Funds, But Were Afraid to Ask....Part 1 of 2
Qualified Settlement Funds, aka QSFs, 468B Funds, or 468B Trusts, are key tools in dispute resolution and claims administration. Once upon a time, they were strictly the province of large class actions, designed to receive monies from defendants (so defendants could take their tax deduction and obtain a binding court-approved release), with the QSF thereafter dealing with claims administration and payouts to plaintiffs. Today, though, these flexible court-approved settlement funds are used in numerous non-class actions, even those involving a mere handful of clients and lawyers. Although a controversy simmers about QSFs involving only one claimant, there's no controversy whatsoever about the vast bulk of QSFs, or their enormous tax and nontax benefits.
So, whether you are a plaintiff's lawyer, defense lawyer, structured settlement broker, mediator, judge, insurance company representative—or even if you're a plaintiff or defendant in a case—this is information you need. Rob Wood of Wood & Porter in San Francisco, host of the Tax Law Channel, is interviewed by our own Scott Drake, in this not to be missed podcast.