Statutory Guidelines [Appendix A(5) Tres. Regs 1.46B and 1.46B-1 to B-5] regarding designated settlement funds and qualified settlement funds.
Connecticut Designated Settlement Funds Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5
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FAQ
A QSF is a trust established to receive settlement proceeds from a defendant or group of defendants. Its primary purpose is to allocate the monies deposited into it amongst various claimants and disburse the funds based upon agreement of the parties or court order, if required.
The benefits of a QSF for an attorney include: More time to plan for contingency fees using attorney fee deferral. Affording clients extra time to implement settlement planning strategies and comply with government benefits income thresholds.
The professional management of an account or trust established to receive the proceeds of a legal settlement with one or more claims.
Qualified Settlement Fund Services Generating client closing statements and providing accounting for the fund. Disbursement of all claimant payments, including directing funding of Special Needs Trusts and/or structured settlements.
A Qualified Settlement Fund (QSF) allows tax payers involved in litigation to receive settlement funds and potentially avoid tax ramifications until the funds are otherwise paid to the taxpayer.