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§468B Qualified Settlement Fund

Model the financial benefit of a QSF in under two minutes.

A calculator for plaintiffs’ attorneys and settlement planners. Estimates net interest, administration cost, claimant outcome, and the after-tax benefit of structuring contingent attorney fees under Childs principles.

Run a scenario ↓~2 minutes · No signup required
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Settlement

The basics of the contemplated resolution.

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Fund mechanics

How long the QSF holds the funds and at what yield.

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Advanced fund settings
Flat or % of fund
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Structure attorney feesModel deferred fee outcome under Childs
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Resultsii.
Net QSF benefit · Claimant side
$28,497
Over 9 months, the fund earns $35,997 after federal tax on investment income, net of $7,500 in administration cost.
Attorney fee structuring · After-tax benefit
$178,681
Present value benefit: $80,823 · Nominal lifetime benefit vs. lump sum

Fund mechanics

How the QSF benefit number is built up

Principal funded$2,000,000
Gross investment income earned$60,806
Federal tax on income (40.8%)$24,809
Administration cost$7,500
Fund value at distribution$2,028,497

Distribution waterfall

From fund value to net claimant proceeds

Fund value at distribution$2,028,497
Attorney fees$666,600
Case costs$50,000
Liens paid$100,000
Net to claimants$1,211,897
Per claimant (1)$1,211,897

Attorney fee structuring

Lump sum vs. deferred receipt under Childs v. Commissioner

Total fee$666,600
Portion structured$666,600
Take-home today (no structuring)$419,958
Total payments over 10 years (structured)$880,351
Net after tax (structured, lifetime)$598,639
Beyond the numbers

The QSF also preserves the ability to execute §130 qualified assignments for structured claimant settlements, provides time to resolve allocations and liens without defendant involvement, supports Medicare set-aside funding, and releases the defendant immediately upon contribution.