by Structured Settlement Watchdog
This blog explores facts and misinformation in the Qualfied Settlement funds (QSF) space
This serious misinformation about qualified settlement funds appeared on the web site of a company run by a structured settlement industry veteran:
The following quote is from the Delta Group website in its answer to the FAQ “What is a Qualified Settlement Fund?” and further references in “Get Used to It, 468B is Here to Stay” by David A. Snyder, President of Delta Group, and member of NSSTA.
“IRC 468b which authorized a QSF” (qualified settlement fund), “specifically allows an IRC 121 “Qualified Assignment” of the QSF’s obligations to make periodic payments under a structured settlement”
Why Delta’s FAQ on 468B was inaccurate
- FACT: IRC 121 has nothing to do with IRC 468B
- FACT: IRC 121 has nothing to do with a qualified assignment. The relevant code section is IRC 130. For the text of IRC 130 please click here
- FACT: IRC 121 is a section of United States Internal Revenue Code that deals with an exclusion of gain on the sale of principal residence. For the full text of IRC 121 please click here
- FACT: IRC 468b does NOT specifically allow qualified assignments. IRC 468(b) has to do with special rules ofr mining and soliud waste reclamation and closing costs”“. For the full text of IRC 468b please click here
- FACT: If certain requirements are met Rev-Proc 93-94 permits the QSF to be a party to a suit or agreement for the purpose of IRC 130, thus enabling qualified assignments to be made by/from a qualified settlement fund.
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