Settle Smarter: Streamline Case Settlement with QSFs

In this video blog, Laura Fetto, Director of Onboarding at Milestone, shares insights on the benefits of qualified settlement fund (QSFs) administration in streamlining the case settlement process for contingency fee law firms.

Click above to watch the video with Laura Fetto now.

The Challenges of Post-Settlement Administration

Winning a case is a significant achievement for trial lawyers and contingency fee law firms, but it often marks the beginning of a complex and time-consuming post-settlement process.

After a successful case settlement, law firms face numerous administrative tasks, including managing settlement funds and distributing funds to claimants. This process can be daunting, especially when dealing with multiple claimants, complex financial circumstances, or outstanding liens and judgments. The administrative burden can divert resources away from the law firm’s core competencies, potentially leading to delays, errors, and increased costs.

Key Considerations in Post-Settlement Administration

1. Cash Flow Management: Law firms must manage settlement funds effectively to ensure timely distribution to claimants and payment of fees. This can be challenging, particularly when dealing with complex cases or multiple stakeholders.
2. Distribution Complexity: Settlements involving multiple claimants or complex financial circumstances require careful planning and administration to ensure fair and compliant distribution.

How Effective QSF Administration Streamlines the Process

QSF administration overcomes these post-settlement challenges by providing a structured and tax-efficient mechanism for managing settlement funds. According to Laura, “When it comes to qualified settlement fund administration, the two most important things… are being effective and agile.”

By outsourcing QSF administration to a trusted partner, law firms can get payments out and handle multiple cases or projects at the same time. The results: streamlined operations, improved cash flow management, and better service to clients.

Benefits of QSF Administration

1. Assistance with Cash Flow: QSFs act as a holding tank mechanism, allowing cases to be settled without being constructively received by the law firm. This helps with cash flow needs, as Laura notes “that buys the firm and their clients time to plan.”
2. Time Management: By outsourcing QSF administration, contingency fee law firms can free up resources and focus on their core competencies. Fetto emphasizes that “when attorneys or firms generally try to take on everything and just do everything in-house, it can become very overwhelming.”
3. Informed Decision-Making: QSFs provide claimants with the time and flexibility to make informed decisions about their settlements. As Laura states, “A QSF really opens the door, not only for claimants to do whatever would suit them and their financial needs best, but also just alleviates the timing pressure.”

The Path Forward

As law firms navigate post-settlement administration, partnering with trusted QSF administrators like Milestone can transform their processes, driving efficiency, transparency, and client satisfaction. As Laura notes, “outsourcing QSF administration to someone who really hones in on that and does it extremely well, offers peace of mind” and allows law firms to focus on their core competencies and deliver exceptional results for their clients.

Get More with Insights from Laura Fetto

Click above to watch the full interview with Peter Webb.

Or, learn more about making your law firm “settlement ready” by watching this video: Trial Lawyers: Is Your Plaintiffs Law Firm Settlement Ready?