Patrick Farber Structured Settlement Brokers

Advantages Of Qualified Settlement Funds

By On · 2:51 PM · Add Comment

Attorneys Robert Wood and Alex Brown recently wrote an article on Qualified Settlement Funds (QSFs). Here are some of the highlights.

  • Defendants benefit from a QSF because they can deduct settlement payments immediately upon payment to the QSF, even if it takes years to actually settle the plaintiff’s dispute.
    
  • Plaintiffs benefit because when settlement funds are held in a QSF, plaintiffs then have time to plan how to eventually receive the funds (i.e., structured settlement, lump sum payout) without taking receipt of the funds for tax purposes.
    
  • QSFs are not required to be trusts, administrators are not required to be licensed trust companies, and QSFs do not need to be approved by and subject to the continuing supervision of a court of law. They can be those things, but they are not legally required.

QSFs do not take the place of structured settlements. A QSF is the vehicle used by the QSF administrator to purchase a structured settlement annuity. QSFs are temporary holding accounts for settlement funds until decisions are made on how the funds will be distributed.

To read Robert and Alex’s article, click here.

For questions about QSFs and structured settlements, please feel free to give me a call or contact me.

Pat Farber

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Patrick C. Farber

Pat Farber has 35 years of insurance experience with more than 30 years in the structured settlement field. Pat specializes in providing structured annuities for medical malpractice, personal injury, product liability, workers’ compensation, toxic torts, and construction defect cases as well as for non-physical injury cases and attorney fees. He participates in court hearings, arbitrations and settlement conferences throughout California, the West Coast and in other areas of the United States. He has personally placed over $3 billion in annuity premiums and U.S. Government notes.

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