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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.
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.
Advantages of Qualified Settlement Funds: QSFs are a win-win solution for all parties involved in litigation. They provide defendants with a quick exit strategy, plaintiffs with financial control, and attorneys with flexible fee structures. They even help settlement administrators by simplifying the process.
Miller Trusts, also called Qualified Income Trusts, provide a way for Nursing Home Medicaid and Medicaid Waiver applicants who have income over Medicaids limit to become income-eligible for Medicaid long-term care.