Qualified Settlement Funds
Evergreen Structured Settlements, Inc. assists attorneys and injured clients in the process of receiving settlement funds in wrongful death, personal injury or medical malpractice cases.
When your client is facing a life changing situation, Evergreen Structured Settlements can create settlement preservation strategies for both individual and mass tort clients.
What is a Qualified Settlement Fund?
Qualified Settlement Funds (QSF) were enacted under Section 468B of the Internal Revenue Code to allow the settlement of lawsuits with more than one claimant before there is an agreement on how these amounts will be allocated.
Qualified Settlement Funds can allow a defendant to pay its policy limits or negotiate a settlement while other defendants remain in litigation. It gives the defendant a simple and complete release in multi party litigation.
Plaintiff attorneys favor Qualified Settlement Funds because they can control the settlement funds while negotiating medical liens, determining appropriate distribution amounts to their clients (in cash and in structured settlements), in Supplemental Needs Trusts to preserve Medicaid and Supplemental Security Income (SSI), structuring attorney fees, and planning for estate needs.
It also eliminates risks of insolvency by the defendant or its insurer and avoids interference or refusal of the defendant to participate in the structured settlement placement.
What claims are eligible for a Qualified Settlement Fund?
A qualified settlement fund must meet three requirements:
- The fund can be any fund, account, or trust that is established pursuant to an order of, or approved by, a government entity.
- It must be a trust under applicable state law or the assets must be otherwise segregated from the other assets of the transferor.
- The claim must be an eligible claim, namely damages arising our of tort, breach of contract or violation of laws; damages arising under the Comprehensive Environmental Response Compensation Liability Act; or any claim designated in an IRS revenue ruling or revenue procedure.