QSF Information | Benton Administration Services

What is a QSF?

An introduction to Qualified Settlement Funds and their purpose.

A Qualified Settlement Fund (QSF), also known as a 468B trust, is a court-approved financial vehicle used to hold and manage settlement proceeds in litigation involving one or multiple plaintiffs. It provides a flexible framework to safeguard funds until they are ready to be distributed to eligible claimants and participating firms.

QSFs allow for a clear separation between settlement receipt and disbursement. This helps avoid constructive receipt, enabling time for tax planning, lien resolution, probate, or other critical post-settlement processes.

When properly established and administered, a QSF allows defendants to make payments, obtain immediate tax deductions, and secure full legal releases, while giving plaintiffs and their attorneys time to resolve allocation issues, liens, and structured settlement arrangements without pressure from defendants.

Benton Administration Services specializes in the administration of QSFs, ensuring full compliance with legal and tax requirements while providing transparent and efficient management of settlement funds throughout the process.

Benefits of Using a QSF

Key advantages for all parties involved in the settlement process.

Avoid Constructive Receipt

Delay distribution of funds to allow for tax planning, financial advising, or government benefit preservation without delaying the broader settlement timeline.

Resolve Administrative Barriers

Handle delays related to liens, bankruptcies, probate, or divorce without impacting other aspects of the settlement process or other claimants.

Earn Interest

High-dollar settlements held over time can accrue interest, which may benefit claimants and provide additional value during the administration period.

Enable Flexible Planning

Law firms can plan for fee receipt and explore structured settlement or trust options on behalf of clients without rushing important financial decisions.

Financial Benefits

Professional investment management, potential for interest earnings on settlement funds, transparent accounting, and regular financial reporting.

Tax Advantages

Tax-neutral environment for settlement proceeds, proper handling of tax reporting requirements, and expert management of tax implications for all parties.

Our QSF Administration Services

How Benton Administration Services manages QSF administration from establishment to final distribution.

Fund Establishment

We prepare and file all necessary motions, orders, and legal documents for court approval. Our team obtains tax identification numbers and opens FDIC-insured, court-approved bank accounts to establish a solid foundation for your QSF.

Financial Management

We oversee treasury functions including fraud protection, fund investment, and principal preservation. Our team manages interest-bearing accounts where applicable and implements internal controls for fund security and growth.

Disbursement Execution

We coordinate with all relevant parties to validate eligibility and authorize distributions. Our experts handle payments to law firms and individual claimants with accuracy and transparency, preparing individualized closing statements and ledgers.

Tax & Regulatory Compliance

Our team prepares and files 1120-SF tax returns and manages quarterly estimated payments. We conduct audits and final tax filings at the fund's conclusion, ensuring full compliance with all regulatory requirements.

Ongoing Reporting & Communication

We provide real-time reporting on fund balances and activity, ensuring transparency with courts, counsel, and financial institutions. Our team coordinates qualified assignments for structured settlements or special needs trusts as needed.

Who We Support

Our comprehensive QSF administration services are designed for a variety of settlement scenarios.

Mass Tort Settlement Programs

We provide specialized administration for complex mass tort settlements, managing the intricate details of multi-claimant distributions and ensuring compliance with settlement agreements and court orders.

High-Value Single-Event Resolutions

For significant single-event settlements, we offer tailored administration services that address the unique needs of substantial funds and their distinctive distribution requirements.

Financial Institutions Holding Settlement Funds

We work closely with financial institutions to ensure proper management and distribution of settlement funds, providing specialized expertise in regulatory compliance and fund administration.

Legal Teams Requiring Expert Oversight

Our team supports law firms and legal counsel by taking on the administrative burden of QSF management, allowing attorneys to focus on client representation while ensuring settlement funds are properly administered.