There are a variety of implications associated with the bank at which you chose to establish your Qualified Settlement Fund.
Some banks charge extensive fees for the money you invest with them, and also have inefficient structures, resulting in valuable claims administration time spent dealing with bank bureaucracy. Consulting with SSI before you make a decision regarding the bank at which to invest your settlement funds can help ensure settlement money goes to your class, not to bank fees and charges. SSI has a long-standing relationships with various banks that increase efficiency and economy of the QSF administration process. Click here to read more about the Qualified Settlement Fund-related services we offer.
Initial design of your claim form can affect the speed and accuracy with which claims are subsequently processed.
Involving SSI in the design of your claim form ensures the form is simple to understand and can be processed effectively, with minimal need for costly follow-up. Click here to learn more about our Claims Processing Services.
The state in which you domicile your Qualified Settlement Fund is important.
Some states have laws that directly implicate the checks issued to the class. For instance, some states require checks for wages issued in those states be able to be cashed at the bank from which the check was issued, regardless of whether the individual to which the check was issued has an account with that bank. In addition, some states have corporate income tax which a QSF domiciled in that state may be required to pay in addition to any Federal taxes it may owe. Involving SSI in the drafting of any documents related to your qualified settlement fund ensures these issues are adequately addressed and accounted for. Click here to learn more about our Qualified Settlement Fund-related services.
There are specific IRS reporting requirements for payments made by a defendant into a Qualified Settlement Fund that most defendants are not aware of.
QSFs are governed by Treasury Regulation 1.468B-1 et seq. Parties should review this regulation in advance of drafting their settlement agreements.