Settlement and Alternative Dispute Resolution
Settlement Structures
A qualified settlement fund under Internal Revenue Code section 468B holds settlement proceeds under court supervision while allocation, lien resolution, and distribution are completed. The defendant obtains a deduction and releases on funding.
It requires court approval and a fund administrator.
Alternative Names:
QSF, 468B Fund
Why it Matters?
The structure lets a defendant close its obligation and obtain releases before allocation and lien resolution are complete, which can otherwise delay closure by months in multi-claimant cases. That timing benefit is the principal reason defendants agree to the arrangement. Claimants benefit from time to arrange structured settlements and special needs planning without pressure from an outstanding check.
Frequently Confused with
Related terms
Frequently asked questions
What does a qualified settlement fund accomplish for the defendant?
What is the claimant benefit?
