What Is A Personal Injury Trust?
If you receive or expect to receive a compensation payment for an injury, a personal injury trust enables you to hold and manage those funds so that they are not taken into account when means-tested benefits or care contributions are assessed.
Payments into the trust can also include insurance payments, other forms of compensation and even charitable donations, provided they are received in connection with the injury.
Typically, a trust will be managed by two or more trustees and the arrangements will be agreed between the parties concerned, set out in a document called a Trust Deed.
Who Needs A Personal Injury Trust?
A personal injury trust should always be considered if you or a loved one is involved in an ongoing personal injury claim where the interim payments or final settlement amount to £6,000 or over. That is because money held in savings and bank accounts, including those of a spouse or partner, must be below £6,000 to be eligible for means-tested benefits.
A trust can also help people who might be vulnerable, young, old or simply unfamiliar with managing a large sum of money. A trust may not be appropriate for everyone, however its advantages and the implications of not using one should be considered, so specialist advice is needed to ensure the injured person is not disadvantaged, and that their interests are protected.
Anyone who has received a payment for a personal injury can create a PI trust. In the case of adults who lack capacity, someone else may need to do this for them, either through an existing Power of Attorney or by applying to become their Deputy via the Office of the Public Guardian
Who Can Be A Trustee?
You can appoint a family member, a partner or yourself as trustees. A solicitor may also be appointed to act as professional trustee alongside you and others. A bare trust is often the most suitable, meaning that the funds still belong to you and you have the power to close the trust at any time you wish. The trustees are unable to object against any request for funds, however they can advise against or in favour of a specific request or transaction.
How Can Davey Law Help?
The advice we give in relation to setting up a trust is guided by the value of the award and your intentions for it, together with your current circumstances and long-term needs.
Our Deputyship and Attorneyship Paralegal, Emily Gray, is able to provide a range of assistance and advice. Emily is a qualified Personal Injury Paralegal and has acted for many clients, setting up and managing high value PI trusts.
Would You Like More Information?
If you would like to know more about setting up a personal injury trust, please contact Emily Gray on 01285 654875 or by emailing firstname.lastname@example.org. She would be very pleased to answer any questions you may have about setting up a personal injury trust and whether it is the best solution for you or a loved one.