Qualified Settlement Trusts (QSTs) are commonly used in personal injury and class action lawsuits to efficiently manage and distribute settlement funds. Once the funds are awarded to the plaintiffs, the settlement amount is deposited into the QST. This structured approach provides several benefits. It allows for the orderly administration of funds, often facilitating tax-free payments to eligible plaintiffs. The settlement funds held in the QST are designated for various purposes, including compensating individuals, covering legal fees, and fulfilling other settlement obligations.

QSTs offer meaningful benefits to plaintiffs and their families. They provide valuable time and flexibility to thoughtfully plan how to best utilize your settlement funds, whether through investment, a structured payout plan, or preserving public assistance eligibility. Importantly, a QST can also help quickly secure the settlement funds from the defendant while allowing time to resolve any disputes over fund allocation. Overall, a QST empowers plaintiffs to make informed, personalized decisions about managing their settlement to best support their financial future.