You’ve worked very hard to reach a settlement. However, as you can see from the information on this website, there is a lot more to plan for than just receiving a check or a series of structured payments. Unfortunately, many parties involved in a personal injury lawsuit feel the pressure of various time constraints just as the case is about to close. This “crunch time” can cause adverse decisions to be made which could not only affect the plaintiff, but the lawyers on both sides and the defendant as well. Wouldn’t it be helpful to able to reach settlement terms that all parties agree to in spirit, but then be able press the “pause” button to make sure all the little details are worked out so that everything gets done correctly the first time (and possibly only time you have a shot at this)? Well, that’s what a Qualified Settlement Fund (QSF) allows the parties to a pending lawsuit to accomplish without sacrificing the “deal” that has been struck.Just in the past few years, the IRS has clarified the rules regarding QSF’s that allow all parties involved to maintain flexibility when settling a dispute. These rules can be found in section 468B of the Internal Revenue Code. Basically, the parties to the lawsuit will set up the QSF in advance of paying funds or signing settlement documents. We prepare the QSF as a Trust document that spells out how the settlement funds will be held and distributed in the future based upon the needs and goals of the parties involved. While many people believe that QSF’s were only meant for multi-party cases (i.e. class action suits), the IRS allows single plaintiffs to use this technique which can greatly enhance the overall outcome for the parties to the lawsuit as well as their respective legal counsel.Consider the following issues that can remain unresolved as the case approaches settlement:
In summary, the use of QSF’s in single plaintiff cases continues to increase across the nation and provides more options and control for all parties involved. If you would like a free analysis of whether a QSF would be helpful to you, please contact us toll free at 888-402-5680.
While Plaintiff Attorneys play a vital role in securing necessary funds to help compensate their clients who are victims of negligent injuries, there are important considerations that reach far beyond settling the case, and have long term effects on the injured client.
The Medicare Secondary Payor Act has always required the determination of a “set aside” of some amount of funds related to paying for future care of an injured worker.
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