A Qualified Settlement Fund ("QSF", a.k.a 468B Trust), is an account that satisfies specific IRS code requirements.
QSFs were created to resolve mass tort and multiple claimant settlements. Funding a QSF allows a defendant to be released, and pay funds to realize the loss immediately.
For the plaintiff and counsel, it provides a sterile account for lien resolution, allocations and distributions. Many lawyers are currently using QSFs to carry over fees until the following tax year, while providing their clients more time to handle financial planning (trusts, structured settlements, government benefits, Medicaid/ Medicare liens, MSAs, etc.).
It is imperative that several requirements be met when establishing a QSF:
A link to the Cornell law description can be found here: https://www.law.cornell.edu/cfr/text/26/1.468B-1
Paragraph C is paramount.