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 ?
* Only the net amount of damages received from qualified settlement funds is included in gross income.
This category encompasses claims that fall outside sections 62(a)(20) and 104(a)(2) but under either fee-shifting statutes, where the court awards legal fees directly to counsel, or "qualified settlement funds" covered by Treasury regulations section 1.468B-1.
A qualified settlement fund must meet three criteria:
A qualified settlement fund gives plaintiff attorneys a tool to combat abusive or self-serving insurance carriers.
Qualified settlement funds, which are generally established to administer a litigation judgment or settlement to a class of plaintiffs, are subject to a myriad of income tax paying, reporting and withholding requirements.
Wood has written a new book, "Qualified Settlement Funds and Section 468B" ...
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.
Specifically, this includes exceptions to reporting of payments to payee attorneys who were acting as (1) settlement attorneys or title insurers in real estate trasactions, (2) executors or estate administrators (e.g., those receiving payments of life insurance proceeds), (3) trust trustees (e.g., 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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