Personal Injury Trusts
If you have received compensation you may wish to consider whether a trust could benefit you.
Means tested benefits
Many people, after they are injured, are unable to work or their earning potential has been restricted. This can mean that their only income is from the Department of Work and Pensions and/or assistance from the local authority.
There are complex rules which determine whether you are eligible for assistance. In short, it is likely that if you have capital over £6,000 you will lose some or all of your entitlement to means tested benefits.
By placing the compensation in trust you can protect your entitlement to receive means tested benefits. This is not a legal loophole. These trusts are recognised by the DWP.
Care
Care can be costly and placing your compensation in trust may assist you to safeguard the compensation which you have received.
Protection
A trust can provide protection from those who seek to take advantage of you or it may be a possible alternative to a Guardian/Attorney.
Do I really need a trust?
In most cases where you are in receipt of means tested benefits or are likely to receive them in the future, YES!
If I put my money in trust can I use it?
Placing your funds in trust will not prevent you gaining reasonable access to your money. It is possible for the trust to set up arrangements for sums to be given to you monthly or as you wish.
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