Personal Injury Trust
If you have been awarded a compensation payment as a result of personal injury proceedings, your entitlement to claim means-tested benefits, such as Income Support, Housing Benefit, and Council Tax Benefit, can be affected unless it is paid into a personal injury trust.
Speaking generally, if you have over £6,000 in capital you are at risk of having your benefits reduced by £1 for every £250 you own over and above £6,000. If you have over £16,000 then you will probably lose your means-tested benefits entirely. Please be advised that the rules are different for those of pensionable age.
Under the current rules, any payment in respect of a personal injury that is held in a trust is completely disregarded when assessing your entitlement to means-tested benefits. This allows you to use your compensation as it was intended, and not simply as a benefits substitute.
In order to set up a trust you require two trustees. One of those would ordinarily be you (the person who has received the compensation award), and then you would look to appoint either a trusted family member, friend or a professional trustee to act alongside you.
We provide professional trustee services and can act as a co-trustee, giving you peace of mind that your finances are secure and that they are monitored and administered effectively. You will have an experienced professional to provide you with guidance on what might be an appropriate way to manage your money.
Whether you use a professional trustee or not, we can also prepare all of the necessary trust documentation, which will be tailored to suit your individual needs.
We will also explain the main provisions of the trust and provide any ongoing support or advice you require.
Please contact us for more information about personal injury trusts, including a tailored quote.