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.