The qualified settlement fund
(QSF) allows for a significant increase in the amount of time that payees have to make necessary determinations," says Lane Powell's Babener.
Wood (Tax Institute, 2009), explains what a qualified settlement fund
(QSF) is and how it is implemented.
The large majority of securities and other class-action cases result in the establishment of a qualified settlement fund
from which legal fees are paid directly.
A qualified settlement fund
(QSF) allows claimants to set up structured settlements without defendants' participation, so plaintiffs can receive the tax advantages of these settlements on terms, that best meet their needs.
468B trust, also known as a qualified settlement fund
(QSF), is often set up to be the repository of moneys in settlement of a case.
62-217 (corporation paid compensation to employees with shares of its treasury stock)) and the qualified settlement fund
rules, which allow a transfer of stock to be treated as a qualified payment (see Regs.
Generally, the treatment of a settlement fund as a qualified settlement fund
(QSF) benefits the transferor, because a transferor who contributes funds to a QSF may be able to take a deduction that would otherwise not be allowed (under the economic performance rules) until the funds are distributed to claimants; see Kegs.