Settlement Fund Administration Made Simple

Many legal cases result in an eventual distribution of money from one party to the other. While some of these settlements can be just a few hundred dollars, the average class-action lawsuit payout tops $43 million.

Law firms are adept at winning these large cases and often need assistance managing the resulting payout. Fortunately, ADM has the tools to simplify the management and administration of these funds – whether it is a large cash settlement or a tax-advantaged Qualified Settlement Fund [QSF].

The Complexity of Settlement Fund Management

In larger cases, like class-action suits or cases involving large corporations, the management of settlement funds can become complex due to the requirements of safety for cash and simple liquidity during payouts. QSFs also have additional regulatory requirements, including added scrutiny on the safety of funds.

To achieve the safety that is recommended for settlement funds and required for QSFs, an FDIC member bank is an attractive option. However, the $250,000 limitation on coverage at a single institution can create complications.

With many settlements exceeding this threshold, law firms managing these funds would need to shop around for multiple banks just to keep the full balance protected by the FDIC. Fortunately, we provide a more efficient solution.

ADM Simplifies Safety for Settlement Fund Management

Our company, American Deposit Management, offers a suite of services to manage, protect and administer settlement funds. These solutions provide several key benefits that enable unparalleled safety.

First, our patent-pending technology allows us to spread cash across a nationwide network of banks and credit unions to take advantage of combined FDIC / NCUA insurance from multiple financial institutions. This provides access to full government insurance for your entire balance – above and beyond the traditional $250,000 limit.

Next, our team is there when you need us. Our specialized staff have experience with everything from traditional financial cases to digitized gold claims and are always happy to provide guidance.

Lastly, our system for dispersal of claims includes the necessary fraud protections to ensure that the money is making it into the right hands. Built-in dual authorization ensures no single person can unilaterally move funds, which reinforces internal controls and aligns with expectations for independent oversight.

We also simplify QSF administration to ensure that both parties can reap the tax-advantaged rewards of this structure. You can also rest assured that compliance with governments and other regulatory bodies is met, and that all the accounting work – like bookkeeping, tax reporting for 1099 issuances, and TIN registrations – is handled appropriately.

Additional Advantages of ADM Settlement Fund Management

In addition to safety, we offer unmatched benefits to fund administrators that set us apart from the competition. Our network of financial institutions competes for deposits, allowing your funds to earn exclusive rates without jeopardizing safety.

ADM services often cost less than traditional financial institutions, because there are no branch fees or network fees. Further, our focus on preserving principal does not sacrifice liquidity. With our solutions, settlement funds and accumulated returns will be available for timely distribution according to your plans.

Finally, management and reporting are simple with our secure portal. It is easy to navigate, and it enables real-time monitoring of all funds – supporting your duty to maintain accurate records and verify transfers.

Earn More, Risk Less™ with ADM.

At ADM, our team is dedicated to ensuring your settlement funds are safe, efficiently managed, and earning a competitive rate of return. If you’re interested in extended protection and exclusive returns, don’t hesitate to contact a member of our team today.

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