To settle mass tort actions, the parties often prefer to structure the settlement payments to take advantage of current tax laws. Section 468B of the Internal Revenue Code permits settlement contributions to be made into certain funds (i.e., accounts or trusts) while the actions continue against other defendants or while the claimants determine an appropriate allocation method. The funds into which these settlement payments are paid are often referred to as 468B settlement funds or QSFs (hereinafter, collectively, 468B QSF). When there is an attempt to create a 468B QSF to effectuate a structured settlement for a single-claimant, it is known as a single claimant 468B QSF.
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