Statutory Guidelines [Appendix A(5) Tres. Regs 1.46B and 1.46B-1 to B-5] regarding designated settlement funds and qualified settlement funds.
Washington Designated Settlement Funds (DSF) are governed by Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations provide guidelines for the establishment and management of DSS, which are used to resolve legal disputes and distribute settlement funds in a structured and tax-efficient manner. Under Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5, there are different types of Washington DSS, each serving specific purposes: 1. General Designated Settlement Fund: This type of DSF is typically established to resolve complex litigation involving multiple parties. It allows for the consolidation of settlement funds and provides a centralized mechanism for distribution. The regulations outline the requirements and procedures for creating and maintaining a General DSF. 2. Qualified Settlement Fund (SF): A SF is a specific type of DSF created to facilitate the settlement of claims involving personal injury, wrongful death, or certain other types of tort cases. It allows for the temporary placement of settlement proceeds in a trust or account, preserving their tax-deferred status until distribution. Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5 detail the eligibility criteria and rules for establishing and administering MSFS in Washington. 3. Court-Appointed Special Settlement Fund: In some cases, a court may appoint a Special Settlement Fund (SSF) to handle settlement funds on behalf of class members or other parties involved in a class action or mass tort litigation. The regulations provide guidance on the structure and operation of SSAS, ensuring fair and efficient distribution of funds to the appropriate beneficiaries. 4. Section 468B Trust: This type of DSF is commonly used to settle taxable litigation, such as intellectual property or breach of contract disputes. Section 468B Trusts allow for the deferral of tax obligations on the settlement proceeds, provided that the trust meets certain requirements outlined in Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. When setting up and managing Washington DSS, it is crucial to understand and comply with the specific provisions of Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations ensure the proper administration of settlement funds, protect the interests of all involved parties, and provide clarity regarding tax implications. By adhering to these regulations, stakeholders can navigate the complexities of DSS and facilitate successful resolution of legal disputes.Washington Designated Settlement Funds (DSF) are governed by Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations provide guidelines for the establishment and management of DSS, which are used to resolve legal disputes and distribute settlement funds in a structured and tax-efficient manner. Under Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5, there are different types of Washington DSS, each serving specific purposes: 1. General Designated Settlement Fund: This type of DSF is typically established to resolve complex litigation involving multiple parties. It allows for the consolidation of settlement funds and provides a centralized mechanism for distribution. The regulations outline the requirements and procedures for creating and maintaining a General DSF. 2. Qualified Settlement Fund (SF): A SF is a specific type of DSF created to facilitate the settlement of claims involving personal injury, wrongful death, or certain other types of tort cases. It allows for the temporary placement of settlement proceeds in a trust or account, preserving their tax-deferred status until distribution. Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5 detail the eligibility criteria and rules for establishing and administering MSFS in Washington. 3. Court-Appointed Special Settlement Fund: In some cases, a court may appoint a Special Settlement Fund (SSF) to handle settlement funds on behalf of class members or other parties involved in a class action or mass tort litigation. The regulations provide guidance on the structure and operation of SSAS, ensuring fair and efficient distribution of funds to the appropriate beneficiaries. 4. Section 468B Trust: This type of DSF is commonly used to settle taxable litigation, such as intellectual property or breach of contract disputes. Section 468B Trusts allow for the deferral of tax obligations on the settlement proceeds, provided that the trust meets certain requirements outlined in Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. When setting up and managing Washington DSS, it is crucial to understand and comply with the specific provisions of Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5. These regulations ensure the proper administration of settlement funds, protect the interests of all involved parties, and provide clarity regarding tax implications. By adhering to these regulations, stakeholders can navigate the complexities of DSS and facilitate successful resolution of legal disputes.
