To help you make your decision I have set out the pros and cons of setting up a personal injury trust. For this comparison I will deal only with a bare trust.
- Compensation ignored when assessing your entitlement to means-tested benefits.
- Compensation ignored when assessing your entitlement to local authority funded care.
- Trust must have its own bank or building society account.
- The trust must have at least two trustees.
- Account requires signatures of trustees which means cheque book only.
- Compensated person must not have direct access to trust fund.
- There is a cost in setting up the trust.
The significant benefit of a trust for personal injury compensation is the compensation and income received into the trust fund are ignored when calculating your entitlement to benefits.
This is a very generous provision which accepts a payment following injury is not a windfall and is intended to cover an injury plus past and future losses. To gain this significant benefit you will have to set up the trust and put up with the inflexibility involved in managing the trust fund. That can be a nuisance, but compare it to the advantages and the decision is clear.
If you are in receipt of benefits, or likely to be in receipt of benefits or care, a personal injury trust should be set up to hold the payment received in consequence of a personal injury.
Happy to have a chat without cost or obligation on 0330 223 1708.