For 9/11 families

Investment Guidance for 9/11 Families

Fee-only fiduciary advice for 9/11 families: USVSST awards, MDL-1570 distributions, and long-term financial security.

Get the 9/11 Family Update →

Free tool · USVSST payout math

What your seventh-round payment could be

One number from your judgment gives a rough estimate; every step is one tap below.

$
Leave out interest and punitive damages.
Estimated payment
$37,200

About $31,620 after the 15% attorney-fee cap.

Estimate only. The Fund sends your actual amount in December.

General education, not legal or tax advice. Sirmium Capital LLC is a New York State-registered investment adviser.

Show every step
Every step, on the same numbers
1. Gross compensatory damages$30,000,000
2. After the $20M individual capDamages above $20M are treated as $20M.$20,000,000
3. Pro-rata round paymentAt the 0.186% estimate. How it is set is below.$37,200
$
Not the VCF. Amounts here reduce the payment, and at 30% or more of your claim nothing is paid this round. Enter 0 if none.
4. Other-source compensation, and the 30% testNo compensation from other sources, so no reduction.No reduction
Maximum attorney fee (15% cap)The most an attorney may charge on a 9/11-related claim.-$5,580
Estimated net$31,620

The family caps are not in this walkthrough on purpose. The Act caps a group, not a person: $35M for the victim, spouse and dependents together, and $20M for a group of family members who are not the victim, spouse or dependent. Neither can be worked out from one judgment, so showing it as a step here would mislead you.

The Fund pays pro rata out of whatever is available each round and says future round percentages can't be predicted, so read every figure here as an estimate, not your award, and not legal or tax advice. Your eligibility, offsets, fee, timing and tax character are for your USVSST/VCF counsel and CPA.

The VCF offset runs one way

A VCF award does not reduce a USVSST payment and is not in the USVSST "other sources" test (the 2019 Clarification Act struck that). You still report it.

The reverse is different: a USVSST payment can reduce a VCF award, because the VCF must offset collateral sources, but only when both are for the same victim. A USVSST payment for a spouse's or parent's death does not reduce your own VCF award. Both are true at once and are not the same rule. Any specific VCF computation routes to your VCF counsel / CPA.

If you or a beneficiary gets SSI or Medicaid, read this first

An incoming payment can interrupt SSI or Medicaid: counted as income the month received, then as a countable resource the month after (SSI limits are $2,000 individual / $3,000 with a spouse). SSDI and Medicare are not asset-tested and are treated differently.

Shelter before disbursement, not after. If a special-needs or pooled trust is the right tool, it generally needs to be in place before the money arrives. Confirm your situation with a benefits or elder-law attorney (and SSA / your state Medicaid agency) before any funds are paid.

On taxes

A USVSST payment is never flatly "tax-free." Treatment is character-dependent: damages received on account of physical injury or death, other than punitive damages, are generally excludable under IRC 104(a)(2), while punitive damages and interest are generally taxable. The Fund issues no 1099 and takes no position. A VCF award principal, by contrast, is excluded from federal gross income (IRS Pub 3920 / IRC 139(f)). Direct every tax question to your CPA.

How 0.186% is set

$160 million for 9/11 claimants (USVSST Fund, Oct 16, 2026) divided by about $86 billion of eligible 9/11 claims, worked back from the sixth round ($2.825 billion ÷ 2 = $1.4125 billion, paid at 1.64% of capped compensatory damages; sixth-round figures and sources).

Catch-up payments to claimants who joined since the sixth round are paid first from the same $160 million, so the real rate can come in lower. The Fund itself says the rate can't be predicted; your actual amount comes in its December notice.

USVSST latest, : the Fund set the seventh-round total at $320 million, split by law into $160 million for 9/11-related claimants and $160 million for non-9/11-related claimants (Fund announcement). Payments for all eligible claims are to be authorized by January 1, 2027, and the Fund says it will tell claimants their payment amounts in December. H.R. 9795, the bill that would add money to the Fund, has had no action since July 21, 2026. See the dated status page and get an email when it changes

Quick Answer

Is my VCF award or USVSST distribution subject to federal income tax?

It depends on the fund and on what the payment is for.

Read the full answer

VCF awards for physical injury or physical sickness are generally excluded from federal income tax; IRS Publication 3920 lists September 11th Victim Compensation Fund payments among the amounts not included in income. USVSST Fund payments are different. Publication 3920 does not address the USVSST Fund, and the Fund issues no Form 1099 and takes no position on taxability. For a 9/11 family, the part of a USVSST award that compensates for physical injury or death is generally excludable under IRC section 104(a)(2), while portions like punitive damages or interest are generally taxable. Separately, investment income you earn after you invest an award is generally taxable. This is general educational information, not personalized tax advice; always confirm with a qualified tax professional.

There is no blanket federal exemption for USVSST Fund awards. We coordinate with your tax advisor so your plan stays aligned with their guidance.

How we help

Planning Around a USVSST or VCF Award

USVSST award recipients and MDL-1570 beneficiaries face financial complexity.

USVSST Fund awards, potential MDL-1570 distributions, charitable gifting strategies, tax treatment of awards: these are not topics covered in standard financial planning curricula. They require specialized expertise.

Sirmium Capital has built its practice around these specific needs. We understand the legal framework, the tax implications, and the long-term capital allocation strategies that protect and grow awards over a lifetime.

What We Help 9/11 Families Navigate

  • USVSST award management and long-term investment structuring
  • MDL-1570 fund distribution coordination
  • Tax-efficient investment strategies for large settlements
  • Charitable giving and legacy planning
  • College funding and generational wealth planning
  • Survivor benefit coordination and income replacement

Go Deeper

9/11 Family Planning Resources

None of this is needed for the calculator above. Tools first, then reading.

Tools

Updated

USVSST Fund Status: Round 7, Balance and the Bill

Listen

The Math Behind Your USVSST Fund Payout

A plain-English walk through how USVSST distributions actually work: the pro-rata math, the 50/50 split, the 15% attorney fee cap, and why the check is a fraction of the judgment. Educational information only, not legal or tax advice. Tax questions about any award belong with your own tax professional.

Reading

Free Resource

Get Your Free USVSST Distribution Planning Guide

The step-by-step guide to USVSST and VCF distributions, how the tax questions generally work, the pitfalls that deplete awards, and how to make it last.

Download the guide (PDF)

No email required. It opens straight away.

Sirmium Capital LLC is a New York State-registered investment adviser. Educational purposes only. Not personalized financial advice.

What's Inside:

  • How the tax questions work, and why there is no blanket answer
  • Where awards quietly get depleted, including means-tested benefits
  • The two programs, the caps, the 30 percent rule, and the 15 percent fee cap
Download

After the Check Clears: A Planning Note for 9/11 Families

A calm, sourced walk through the planning that starts once a VCF or USVSST award arrives: getting the tax character right, protecting means-tested benefits like SSI and Medicaid, and slowing down before selling a judgment. Educational information only, not legal or tax advice. Tax questions about any award belong with your own tax professional.

Read the PDF →
Plain English

The Terms, in One Place

The words that come up most often in a 9/11 recovery, defined plainly. This is education, not legal or tax advice; your eligibility and any tax question route to your counsel and CPA.

Foreign Sovereign Immunities Act (FSIA)
The law that makes a foreign country presumptively immune from being sued in a United States court. A family can reach that country only through a specific statutory exception.
State sponsor of terrorism
A country the United States has formally designated. Three are designated: Cuba, North Korea and Iran. Syria's designation was rescinded effective August 24, 2026. Only a designated country can be reached under the Section 1605A exception, which is the door the USVSST Fund is keyed to.
28 U.S.C. Section 1605A
The FSIA state-sponsor-of-terrorism exception. It removes immunity only from a designated country, and it is the exception behind the 9/11 families' judgments against Iran and the USVSST Fund's eligibility rule.
JASTA (28 U.S.C. Section 1605B)
The Justice Against Sponsors of Terrorism Act, enacted as Public Law 114-222 in 2016. It reaches a foreign country for an act of international terrorism on United States soil whether or not the country is a designated state sponsor, and it is the basis for the 9/11 case against Saudi Arabia. A JASTA recovery does not feed the USVSST Fund.
USVSST Fund
The United States Victims of State Sponsored Terrorism Fund (34 U.S.C. Section 20144). It pays holders of a qualifying final judgment against a designated state sponsor, pro-rata and in rounds, until it terminates on January 2, 2039.
VCF
The September 11th Victim Compensation Fund, a separate federal program on a separate legal basis. Whether you filed a VCF claim does not decide USVSST eligibility, and a VCF award is not subtracted from a USVSST payment.
Final judgment
An enforceable United States district-court judgment, with all appeals finished. Holding a qualifying final judgment against a designated state sponsor is the USVSST eligibility key. A judgment is not a payment.
Compensatory damages
The category of damages a USVSST claim is based on. By statute it excludes pre- and post-judgment interest and punitive damages.
The 50/50 split
Since 2019 (Public Law 116-69), the Fund must divide each distribution in half, 50 percent to 9/11-related claims and 50 percent to non-9/11 claims, then pay each side pro-rata. Because 9/11 claimants are the larger group, halving the pot yields a smaller per-dollar recovery on the 9/11 side.
Pro-rata distribution
Each round pays eligible claims as a percentage of the amounts outstanding and unpaid, out of what is available that round. The percentage is specific to each round, and by law no one can predict a future round's percentage. For the seventh round we show a rough estimate, with its method, in the calculator at the top of this page.
Family caps
The Act sets a $20 million individual cap, a $35 million cap for a family group of the victim, spouse, and dependents, and a lower $20 million cap for a group of non-dependent parents or siblings.
Round
A distribution cycle. In the sixth round (authorized December 2025, paid January 2026), the 9/11 payment percentage was 1.64 percent and the non-9/11 percentage was 5.24 percent, on the same capped-judgment basis. A seventh round has been announced: on October 16, 2026 the Fund said $320 million is available, $160 million for each side, with payments authorized by January 1, 2027 and payment amounts sent to claimants in December 2026. In July the Fund had said at least $275 million.

Questions from 9/11 Families

Every family's situation is different based on age, dependents, income needs, and long-term goals. Generally, we build a diversified portfolio calibrated to your time horizon and risk tolerance, blending capital preservation with long-term equity exposure using William Harrison's research. We do not use a one-size-fits-all approach.
Yes. We coordinate with your legal counsel to understand the timing and structure of any expected distributions, so your financial plan accounts for these funds appropriately. We do not provide legal advice. We focus exclusively on investment and financial planning guidance in coordination with your legal team.
We work with 9/11 families who have received or expect USVSST awards, USVSST fund distributions, or MDL-1570 payments. We serve families who want a long-term fiduciary relationship, not a one-time transaction. Book a free discovery call to discuss whether we're the right fit.

Articles

When you're ready

Talk it through with us

A free 15-minute call about an award, a distribution or what comes next. Nothing to decide on the call and nothing to sign. No obligations.

Book a Free 15-Min Call

Not ready to talk? See how a plan works for an example family. Every figure is made up.

Or, if you would rather read first:

Get the 9/11 Family Update

A short email when USVSST rules, payment dates, or the cases families are watching actually move. Next up: on October 16 the Fund set the seventh-round total at $320 million, and in December it says it will tell claimants their payment amounts. When that happens, you will get it here in plain English with the source. Sign up and we will also send you The 9/11 Family Handbook, free. No spam.

or read it

Informational only, and not legal or tax advice. Sirmium Capital LLC is a New York State-registered investment adviser. Unsubscribe any time; we never share your address. Privacy policy.