Personal Injury Trusts
Managing compensation received due to a personal injury
A Personal Injury Trust (also known as a Compensation Protection Trust) is a way of managing compensation received due to a personal injury. By placing your compensation in a Personal Injury Trust, it is ring-fenced so that it is not linked to your other personal capital.
The main advantage of a Personal Injury Trust is that it allows the beneficiary (you) to claim means-tested state benefits whilst still being able to benefit from the Trust fund.
Normally, an individual having capital over a certain limit or income over a certain level is disqualified from entitlement to certain benefits. By putting the money into a Personal Injury Trust, the compensation is disregarded by the Department for Work and Pensions for the purpose of means-tested state benefits.
Amongst others, the following means-tested benefits can be protected by creating a Personal Injury Trust:
- Income Support
- Income-related Jobseeker’s Allowance
- Housing Benefit
- Employment and Support Allowance
- Council Tax Benefit
- Working Families Tax Credit
- Disabled Person’s Tax Credit
Even if you are not currently on means-tested benefits, a Personal Injury Trust can protect you by preventing the loss of any future benefits you may be entitled to should your circumstances change, including help with long-term care.
Our Court of Protection team have extensive experience helping people to set up and manage Personal Injury Trusts. We can advise you on whether this is the right option for you, then guide you through the whole process of establishing the trust. Once the trust is in place, we can provide as much support as you need to ensure it is managed effectively.
Find out more about our Court of Protection services.
Or get in touch to discuss how we can help you by calling 01752 292201.