Qualified Settlement Fund
Discover who Quest Settlements is & how we can help your clients achieve financial security.
Qualified Settlement Funds, known also as QSFs, Section 468B trusts or Section 468B funds, are an important means of allowing plaintiffs’ attorneys to settle a case for cash while at the same time maintaining the plaintiffs’ ability to subsequently get structured settlement annuities with tax-free fixed payments.
Any case that involves more than one claimant, or more than one claim, is eligible for Qualified Settlement Fund consideration. The settlement consultants at Quest Settlements have decades of experience helping attorneys and their clients set up Qualified Settlement Funds in California for Los Angeles County and San Diego County.
A Qualified Settlement Fund mainly functions as a tax-free temporary repository for settlement money, giving plaintiffs and their attorneys time to figure out how the funds are going to be divided up. Once all of the logistics have been worked out, the QSF disperses money accordingly and is then ended once no settlement money remains.
There is currently no legal time limit as to the duration of a Qualified Settlement Fund. While intricate cases with a large number of plaintiffs and claims may necessitate QSFs lasting up to a few years, simpler cases could make use of a QSF for just a few months or even weeks.
Comprehensive Settlement Solutions
Comprehensive Settlement Solutions
The Many Benefits of a QSF
Our qualified settlement fund services provide numerous benefits for the plaintiffs, the plaintiffs’ attorneys, and the defendants. The QSF grants plaintiffs valuable time to work through and coordinate important financial choices without them needing to worry about immediate tax ramifications.
Plaintiffs can strategically time payments made from the QSF, with that income not subjected to federal or state taxes until dispersed. Additionally, when claimants use Qualified Settlement Funds to establish structured settlement annuities, they are able to get periodic income payments that are not diminished by taxation. Plaintiff attorneys are also able to utilize QSFs as a means of structuring their fees to defer taxes on that money.
Defendants also can benefit from a Qualified Settlement Fund. When a defendant pays the required amount into the fund, he or she no longer needs to worry about being held legally liable. This resolution lifts a big weight off the shoulders of defendants and plaintiffs as it ends the contentious litigation process. As an additional benefit, defendants are able to use the QSF asset transfer as a useful deduction for tax purposes.
Let's talk
Quest Settlements is your financial security.
Qualified Settlement Fund Specialists Serving LA County and San Diego County
The highly-skilled settlement consultants that conduct our qualified settlement fund services are here to help attorneys and claimants in California set up Qualified Settlement Funds. As a QSF needs to legally qualify as a trust, adhere to guidelines set forth in Section 468B of the Internal Revenue Code, and receive approval from a judge, we help ensure that all aspects of the fund are set up properly.
Our top structured settlement company is available around the clock to assist you. To consult with our Los Angeles structured settlement branch, please call (805) 823-6100. To speak with our San Diego structured settlement branch, call (619) 391-2578. If you prefer, you can also contact us online. With our extensive experience and knowledge of Qualified Settlement Funds, we’re confident that we can effectively meet your needs.