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Qualified Settlement Fund
A Qualified Settlement Fund (QSF) is an IRS-compliant settlement tool that creates time to optimally resolve one or more claims. When a QSF is setup, the defendant makes a payment into the account in exchange for a full and final release. The process is supervised by a court and has been used for decades.
Step-By-Step Process
Intake Submission
Our team will need to know the following in order to begin the process of establishing a QSF: name of attorney, name of law firm, a copy of the complaint, who will pay the $5,000 setup fee (firm or plaintiff), and when will the QSF be expected to receive funds. This can be sent to us via email at chris@buasettlements.com.
Agreements via DocuSign
Our team will send you a Statement of Work outlining the services that will be rendered and costs, as well as a Services Agreement outlining the terms and standards for the administration process.
Obtain Court Approval for Establishing QSF
General counsel retained by QSF Administrator will obtain formal approval from Court to establish the QSF and that Court will maintain jurisdiction and oversight over the activities of the QSF until it is winded down.
Receive Settlement Funds from Defense
Funds from the defense will be deposited into FDIC-insured bank account, earning interest that will be shared 50/50 with the QSF Administrator and the law firm/plaintiff(s).
Obtain Court Approval for Distributions
Once the law firm and plaintiff(s) have decided how and whom to direct the settlement proceeds, those instructions are taken to the Court for approval and then issued via bank wire. Court approval is usually same-day or next-day, with wires being issued same-day as approval.
File Tax Return and Close QSF
The QSF Administrator will submit the appropriate tax filings and obtain approval to close the account after all distributions have been made and the account balance is $0.