### Question
How is the "qualified order" defined?


### Answer
The term **qualified order** is defined in *26 U.S.C. § 5891* as follows -

> a final order, judgment, or decree which—


(A) finds that the transfer described in paragraph (1)—


(i) does not contravene any Federal or State statute or the order of any court or responsible administrative authority, and


(ii) is in the best interest of the payee, taking into account the welfare and support of the payee's dependents, and


  

(B) is issued—


(i) under the authority of an applicable State statute by an applicable State court, or


(ii) by the responsible administrative authority (if any) which has exclusive jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement

#### Citation:
  - *26 U.S.C. § 5891*
  - Heading: **Subtitle E-Alcohol, Tobacco, and Certain Other Excise Taxes > CHAPTER 55-STRUCTURED SETTLEMENT FACTORING TRANSACTIONS**

