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Protecting your compensation
Personal Injury Trusts
If you are in receipt of benefits then you will require advice in relation to Personal Injury Trusts in order to protect your compensation.
What are Personal Injury Trusts?
If you are in receipt of means tested benefits, or are likely to be in the future, receipt of a lump sum compensation award may be taken into account by the local authority when assessing your means.
A Personal Injury Trust protects your compensation from being taken into account as part of this assessment. You will, therefore, continue to be eligible for financial assistance.
Is a Personal Injury Trust necessary?
Not unless you are in receipt of means tested benefits or are likely to be in the future.
If you are in receipt of means tested benefits, then you should discuss setting up a Personal Injury Trust with your Lawyer prior to any payment of compensation being made to you.
Even if you spend your compensation it can still be taken into account as part of your assessment and your benefits could still stop.
So, the answer is: if a settlement looks likely in your case then Personal Injury Trusts ought to be considered before any payments are made to you.
How can I access my compensation in a Personal Injury Trust?
A Personal Injury Trust is controlled by Trustees who act on your behalf. Payments are made by the Trustees for services on your behalf. Payments must be for services or items that are not covered by the benefits you receive. Your Lawyer will explain this further to you.
How do I set up a Personal Injury Trust?
Your Lawyer will discuss this with you. You will need to instruct a Financial Advisor to set up the Trust.
