Statutory Guidelines [Appendix A(5) Tres. Regs 1.46B and 1.46B-1 to B-5] regarding designated settlement funds and qualified settlement funds.
South Dakota Designated Settlement Funds Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5 pertain to the guidelines set forth by the Treasury Department regarding designated settlement funds in South Dakota. These regulations aim to ensure compliance, transparency, and effective management of such funds. A designated settlement fund (DSF) involves the creation of a trust or escrow account to receive and distribute settlement payments from legal disputes, particularly in cases involving mass torts or class action lawsuits. These funds are established to streamline and expedite the distribution process, benefiting both claimants and defendants in reaching a fair resolution. Treasury Regulations 1.468 addresses the general framework and requirements for the establishment and maintenance of DSS in South Dakota. It outlines the necessary procedures and legal obligations surrounding the creation, funding, administration, and termination of these funds. Compliance with these regulations ensures that all financial activities related to the DSS are carried out lawfully and with the utmost integrity. Treasury Regulations 1.468B.1 through 1.468B.5 elaborate on specific provisions related to qualified settlement funds (MSFS), which fall under the broader category of DSS. MSFS are established for the purpose of temporarily holding settlement funds until their final distribution is determined. These regulations lay out the conditions under which an SF can be created, how it should be structured, and the tax treatment of such funds. Different types of South Dakota Designated Settlement Funds Treasury Regulations under 1.468 and 1.468B.1 through 1.468B.5 may include: 1. General DSF Regulations: These cover the overarching rules for establishing and operating designated settlement funds in South Dakota, ensuring compliance with state and federal laws and promoting fairness and transparency. 2. Qualified Settlement Funds Regulations: These regulations specifically address the creation and management of MSFS, which hold settlement funds temporarily until their distribution is determined. They outline the necessary steps and requirements for setting up and administering these funds, including the appointment of trustees, submission of tax returns, and reporting obligations. 3. Funding and Distribution Regulations: These regulations provide guidance on how settlement funds should be appropriately funded and distributed from designated settlement funds. They may include provisions on calculating and approving claimants' shares, verifying proof of claims, determining distribution timelines, addressing appeals or disputes, and ensuring relevant tax reporting and withholding compliance. 4. Termination and Reporting Regulations: These regulations detail the process for terminating designated settlement funds once all payments have been made. They also outline the reporting obligations that trustees or administrators have towards the Treasury Department, including financial statements, tax documentation, and any other necessary disclosures. In summary, South Dakota Designated Settlement Funds Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5 represent a comprehensive framework that governs the establishment, operation, and dissolution of designated settlement funds in South Dakota. These regulations aim to ensure compliance, protect the rights of claimants and defendants, and foster an efficient and equitable resolution process.
