Qualified Settlement Fund


Also found in: Acronyms.

Qualified Settlement Fund

A fund into which a defendant in a lawsuit may deposit assets to pay multiple plaintiffs. Under a qualified settlement fund, the plaintiffs may not have agreed how to distribute the assets among themselves, but they have agreed that the defendant has no further liability to pay beyond what is in the qualified settlement fund. This means that the defendant cannot be forced to pay any more to settle the claim with the plaintiffs. The amount the defendant puts into a qualified settlement fund is tax deductible. Qualified settlement funds are also called 468B settlement funds or 468b settlement trusts.
References in periodicals archive ?
As the arrangements have grown more complex, plaintiff attorneys have increasingly turned to IRC Section 468(b) qualified settlement funds (or trusts) because of the flexibility the temporary vehicles afford in structuring settlements, particularly in mass tort cases involving multiple plaintiffs.
Hindert observes, too, that many abuses could be avoided if more PI claimants and their advisors were afforded access to qualified settlement funds to work through the issues--and potentially sidestep defense brokers.
Only the net amount of damages received from qualified settlement funds is included in gross income.
A qualified settlement fund gives plaintiff attorneys a tool to combat abusive or self-serving insurance carriers.
Qualified settlement funds include the designated settlement fund plus liabilities under tort, environmental, breach-of-contract, violation-of-law, and other claims as designated by the IRS.
The Administrator can be contacted by writing to: Lynn Lincoln Sarko, Exxon Qualified Settlement Fund, P.
The Administrator can be contacted by writing: Lynn Lincoln Sarko, Exxon Qualified Settlement Fund, P.
468B and related regulations apply to determine when economic performance is deemed to occur when taxpayer makes a transfer of money or other property to a designated settlement fund (DSF) or a qualified settlement fund (QSF).
IRS guidance: In a series of letter rulings, (16) the Service ruled that contingent attorneys' fees paid from qualified settlement funds, as defined by Sec.
pension plans and bankrupt estates) and (4) administrators of qualified settlement funds.
468B dealing with qualified settlement funds did not provide guidance for accounts and funds governed by Sec.

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