Once a lawsuit settles or reaches a verdict, the terms of settlement must be honored to the most rigorous standards. This often means collecting qualified settlement funds and organizing and distributing those funds according to court instructions. This can prove to be not only difficult but can consume your law firm's valuable time and resources. However, there may be a more time and expense-efficient way to handle settlement funding, maintenance, and distribution. Hire a qualified settlement fund (QSF) administrator.
Selecting a QSF administrator may be a law firm's most important decision. Any mismanagement of settlement funds could result in hefty fines, censure, or irreparable damage to your firm's reputation. Avoid this fallout with QSF administration by ARCHER. Our company is committed to accuracy, accountability, and transparency every step of the way.
Our expert qualified settlement fund services include:
- Preparing all motions, court orders, and documents needed to establish and administer the fund in accordance with the Master Settlement Agreement.
- Obtaining a qualified settlement fund tax ID and opening a certified FDIC-insured bank account(s).
- Providing complete treasury management, including fraud protection and investment of funds within the QSF, keeping funds secure with a focus on principal preservation.
- Inspecting materials and coordinating with relevant parties to ensure proper disbursement of funds once disbursements are eligible.
- Preparing and filing 1120-SF tax returns and estimated quarterly tax obligations, conducting regular audits, and handling documentation and filings upon conclusion of the settlement.
- Reporting QSF balances to the Court and other parties as needed.
- Executing qualified assignments in connection with structured settlements and/or special needs trusts.
Timely and accurate disbursements are crucial to the overall success of a settlement. However, that success requires resources that can quickly drain a law firm’s already inundated operations and accounting departments. Our proprietary technology streamlines the QSF process, equipping us to expertly handle both gross payments to law firms as well as individualized claimant closing statements/ledgers as well as disbursements to the individual claimants, all with pinpoint accuracy.
You’ve done the heavy lifting—we’ll help you get the settlement across the finish line. Contact ARCHER as early as possible to ensure QSF program success.
What is QSF?
A qualified settlement fund (QSF), commonly referred to as a 468B Trust, is a legal mechanism used in mass tort lawsuits to expedite the administration and distribution of settlement payments.
A QSF is essentially a temporary “holding tank” for the proceeds of a settlement. It allows parties involved in a lawsuit to establish a fund where settlement proceeds can be deposited and held until they are distributed to eligible claimants. QSFs are commonly used in cases involving multiple plaintiffs with similar claims, such as those related to product liability, environmental contamination, or pharmaceutical litigation, however, in certain situations, they may also be used in single-plaintiff cases.
Benefits of Mass Tort QSF Administration
The primary purpose of a QSF is to streamline the settlement process by centralizing the management of funds and ensuring fair and efficient distribution to claimants. By establishing a QSF, the defendant can resolve all claims in a single transaction, minimizing the time, cost, and administrative burden associated with individual settlements. The QSF administrator plays a crucial role in overseeing the fund, managing the distribution process, and ensuring compliance with applicable laws and regulations.
How Does QSF Administration Work?
QSF administration involves various tasks, including verifying claimant eligibility, calculating individual settlement amounts, addressing tax implications, coordinating with legal counsel, and handling any necessary court approvals. The administrator works closely with all parties involved to ensure transparency, accuracy, and fairness throughout the settlement process.
Overall, a QSF provides a structured framework for handling complex mass tort settlements, allowing for efficient resolution and equitable distribution of settlement funds to eligible claimants.
For experienced mass tort QSF administration, do not hesitate to consult ARCHER. Contact us online today.