Why Mass Torts Need Qualified Settlement Funds

Posted on October 11, 2021

If you’re a mass tort attorney, you know about the added complexities that come with handling multiple (often thousands) of plaintiffs in one case. And without a doubt, even more complexities arise at settlement time.

A qualified settlement fund (QSF) is the latest standard of care in mass tort litigation, as it allows for a streamlined and well-organized settlement process no matter how many plaintiffs and attorneys are involved. Also known as a Section 468B trust, a QSF is useful in mass tort cases because it increases the planning time available to the many plaintiffs and their attorneys beyond the end of litigation. As the funds remain in the QSF, plaintiffs can consult with a settlement planner to explore their options for government benefits planning, the possibility of structuring their payout, and more. At the same time, attorneys can consider whether to defer their fees into a periodic payment obligation for their own tax planning and wealth management.

After a QSF is established, the defendant pays the agreed-upon settlement amount into the trust and is generally released from the litigation and any post-settlement decisions that arise. The QSF then holds the settlement monies until each plaintiff and attorney is ready to receive their individual portion. It’s important to know that the individual claimants do not have to wait for the other claimants to finalize their decisions before receiving their portion of the settlement. A QSF allows each plaintiff and their settlement expert the time needed to make thought-out decisions regarding their current and future financial needs as well as the freedom to complete their settlements without being tied to the timeline of the other plaintiffs. A QSF offers mass tort cases flexibility.

Milestone’s qualified settlement fund administrators can assist you with the creation of a QSF and its management. Our experts can also provide individual settlement planning for both claimants and attorneys. Call us today at 716.888.1833 to chat with one of our team members.