PUTTING COMPENSATION INTO A TRUST
Anyone who receives compensation as a result of making a personal injury claim (and sometimes in respect of other money received as a consequence of a personal injury) is entitled by law to protect that money by placing it in a trust. These are sometimes called Personal Injury Trusts, or Compensation Protection Trusts.
A Trust can assist you by preserving any means tested benefits you currently receive or might receive in the future, including local authority assistance with nursing home fees.
This type of trust works on the basis that you give your compensation, (all or part of it), to trustees to look after for you. You choose who acts as your trustees. If you receive a sizeable award, or if there are family tensions, it may be sensible to consider the appointment of a professional trustee, such as a solicitor.
Once the money is held in trust, it is no longer counted as savings in the calculation of your entitlement to means tested benefit.
There are different types of trust, and we would advise on which is the best for you.
If you are considering setting up a trust, you must act as quickly as possible as time limits apply, and if you delay any benefits you currently receive will be affected in the short term. Please therefore discuss this with the person handling your claim at an early stage. They will then liaise with our Private Client team who will advise on and set up the trust.
We can advise you about a personal injury trust even though we may not have dealt with your damages claim.
If you need advice about a claim please contact our Personal Injury & Accident
team on 01522 780591. If you wish to speak to someone about a personal injury trust, or you have a query about any other type of trust, please contact our Wills & Estate Planning
team on 01522 512123.