It allows for the secure aggregation and efficient distribution of funds to single or multiple plaintiffs or claimants, typically in situations where there are numerous parties entitled to a portion of the settlement proceeds.
QSFs offer flexibility and protection in the receipt of settlement proceeds, ensuring that each party receives their rightful share in an organized and controlled manner.
Flatirons Bank serves as the escrow agent and administrator of each QSF, handling all the administrative tasks, including account reconciliations, reporting, and tax filings, so you can focus on what matters most - your clients.
How does a QSF work?
- When a lawsuit is settled, a QSF is requested to administer the resolution of claims associated with the case. QSF names are limited to 45 characters, and must include one of the following: Fund, Account, Settlement, or QSF.
- After a QSF is requested, Flatirons Bank will petition a governmental authority for approval to establish the QSF entity. After the approval is received, Flatirons Bank obtains an EIN from the IRS, generates the escrow agreement, and opens the accounts that will hold the funds.
- Funding instructions are then populated in the platform with the W-9, and the QSF is ready to accept funds.Important Note: All funds must be made payable to the QSF entity and must be received directly from the Transferor, as such term is defined in Treas. Reg. § 1.468B-1.
- After the account is funded, the settlement documentation is uploaded into the platform. Justice Escrow will maintain subaccounting records to ensure accurate resolution of the claims, and transparent record keeping for each party.
- Distributions can be requested through the platform and made via check or wire, directly to the associated party or through a structured settlement custodian. All distribution requests must be verified by the firm and approved by Flatirons Bank before any funds are released.
Justice Escrow: Redefining QSF Management
The Justice Escrow online platform is a cutting-edge solution designed exclusively for law firms. Our proprietary tool offers an effortless, all-in-one experience tailored to meet your firm's QSF needs. Developed by a team of industry experts with decades of experience and informed by client feedback, we continually refine our platform to meet the evolving needs of law firms. Justice Escrow combines innovative technology with personalized, relationship-based service, offering rates that are twice the national money market average alongside a competitive fee schedule.