If you have been awarded compensation during or following a claim, which has occurred as a result of a personal injury, medical negligence, industrial disease or criminal injuries, you might find that you are no longer eligible for any means-tested benefits you are currently entitled to.
However, we understand that you have been awarded compensation for a specific reason, and are entitled to claim it. To help protect your family and your future, you can create a Personal Injury Trust to ensure that you continue to receive state benefits. Personal Injury or Damages Trusts are a form of ‘trust’ which legally allow you to receive your compensation and keep your state benefits.
How do Personal Injury Trusts work?
The trust is created by you when you sign a special document called a “trust deed”. The money placed in a Personal Injury Trust can be accessed by “trustees”, who will manage and look after your compensation on your behalf. You can choose your own trustees, if you so wish, and will usually be yourself, your partner or a parent. You may also appoint your Personal Injury Solicitor as your trustee, especially in the event that the compensation is for a child.
The trust deed also explains how the money is to be invested, i.e. into a designated trust bank or building society account, separate from your personal account.
Benefits of a Personal Injury Trust
Your means-tested state benefits are there for your day to day living requirements, whilst your compensation is awarded to compensate you for any pain and suffering and to cover your future care needs and medical treatment, together with loss of earnings.
There are many benefits to the protection of a Personal Injury Trust:
- To protect funds for care in later life;
- To allow others to assist you in the event of your own fluctuating mental capacity;
- To assist in protection from divorce or a declaration of bankruptcy – however, you must still declare the Personal Injury trust in such events;
- In the event of a future claim for means-tested benefits;
- To allow others to assist you in managing the funds;
- To protect your funds from others – including family and friends – remember these monies are compensation for injuries you have suffered.
Contact us to discuss Personal Injury Trusts
For more information and advice please contact a member of the Personal Injury Trusts team on 0116 254 8871.
Or pop in and see us at your local office by clicking on the links below:
Leicester call us on 0116 254 8871.
Hinckley call us on 01455 639 900.
Market Harborough call us on 01858 467 181.