Statutory Guidelines [Appendix A(5) Tres. Regs 1.46B and 1.46B-1 to B-5] regarding designated settlement funds and qualified settlement funds.
New Jersey Designated Settlement Funds (DSS) refer to legal arrangements established under Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations pertain to tax treatment and administration of funds set aside for resolving mass tort liabilities and environmental remediation costs in New Jersey. 1.468 and 1.468B.1 through 1.468B.5 are crucial provisions that outline the specific requirements, procedures, and conditions for creating and utilizing DSS in New Jersey. These regulations are designed to ensure proper allocation, taxation, and distribution of funds related to settlements involving multiple claimants or complex environmental cleanups. There are two main types of DSS addressed by the New Jersey Treasury Regulations: 1. Designated Settlement Fund (DSF): A DSF is typically established to facilitate the resolution of mass tort claims, where a substantial number of claimants seek compensation for injuries caused by a common defendant(s). Under Treasury Regulation 1.468, a DSF allows the defendant(s) to make a single lump-sum payment into the fund, which is then administered to compensate eligible claimants in accordance with court-approved settlement agreements. The regulations provide detailed guidelines on the tax treatment of such funds, ensuring compliance with federal tax laws. 2. Environmental Designated Settlement Fund (EDS): An EDS is created specifically for environmental remediation purposes. It serves as a means to finance and oversee the cleanup of contaminated sites in New Jersey. These funds often result from settlement agreements reached between responsible parties and the state's environmental regulatory agency, such as the New Jersey Department of Environmental Protection (NJ DEP). Treasury Regulations 1.468B.1 through 1.468B.5 establish the framework for Edges and outline the criteria for their creation, administration, and usage. The New Jersey Treasury Regulations ensure transparency, accountability, and adherence to tax regulations concerning DSS and Edges. By implementing these guidelines, the state creates a structured framework that protects the interests of claimants seeking compensation or environmental restoration. These regulations also provide essential guidance and clarity for defendants, administrators, and regulatory agencies involved in the management of designated settlement funds in New Jersey.New Jersey Designated Settlement Funds (DSS) refer to legal arrangements established under Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations pertain to tax treatment and administration of funds set aside for resolving mass tort liabilities and environmental remediation costs in New Jersey. 1.468 and 1.468B.1 through 1.468B.5 are crucial provisions that outline the specific requirements, procedures, and conditions for creating and utilizing DSS in New Jersey. These regulations are designed to ensure proper allocation, taxation, and distribution of funds related to settlements involving multiple claimants or complex environmental cleanups. There are two main types of DSS addressed by the New Jersey Treasury Regulations: 1. Designated Settlement Fund (DSF): A DSF is typically established to facilitate the resolution of mass tort claims, where a substantial number of claimants seek compensation for injuries caused by a common defendant(s). Under Treasury Regulation 1.468, a DSF allows the defendant(s) to make a single lump-sum payment into the fund, which is then administered to compensate eligible claimants in accordance with court-approved settlement agreements. The regulations provide detailed guidelines on the tax treatment of such funds, ensuring compliance with federal tax laws. 2. Environmental Designated Settlement Fund (EDS): An EDS is created specifically for environmental remediation purposes. It serves as a means to finance and oversee the cleanup of contaminated sites in New Jersey. These funds often result from settlement agreements reached between responsible parties and the state's environmental regulatory agency, such as the New Jersey Department of Environmental Protection (NJ DEP). Treasury Regulations 1.468B.1 through 1.468B.5 establish the framework for Edges and outline the criteria for their creation, administration, and usage. The New Jersey Treasury Regulations ensure transparency, accountability, and adherence to tax regulations concerning DSS and Edges. By implementing these guidelines, the state creates a structured framework that protects the interests of claimants seeking compensation or environmental restoration. These regulations also provide essential guidance and clarity for defendants, administrators, and regulatory agencies involved in the management of designated settlement funds in New Jersey.
