Personal injury trust fund

I need a personal injury trust fund.

I am often asked how to set up a personal injury trust fund. The question is asked by people who are settling personal injury compensation claims and are worried they may lose their means tested benefits.

You will be relieved to know you can legitimately keep your benefits and compensation. What you must do is set up a trust to hold the compensation, often called a personal injury trust. The trustees then open a separate bank account, so the compensation is held separate from your personal funds.

A trust is created by a trust deed, a legal document, which states the purpose of the trust and appoints trustees to manage the compensation.

Benefit regulations allow compensation to be held in a trust, it being accepted compensated people have not won the lottery. Compensation has been paid for injury, financial loss and future needs. Provided you keep and use the compensation separate from your personal funds, in a trust, the compensation will be ignored when assessing your finances for benefits or local authority care. This is a generous allowance and should be used by all compensated people who currently claim means tested benefits, or who are likely to claim such benefits in the future. The same applies if you will need local authority care.

To help you decide if you need a trust read more here.

How much a trust will cost and how I can help is explained here.

Pros and cons of setting up a personal injury trust are explained here .

Help on personal injury trust 0330
Call 0330 223 1708 at land line rate

Do not be put off by the terminology. A trust is a device to hold the compensation. You are simply asking trustees to manage the compensation for you. You can be a trustee yourself. A trust for compensation is a positive legitimate arrangement, not a problem. Read more.

For help without obligation please call 0330 223 1708

About Mark Thompson

Personal injury and accident specialist solicitor
This entry was posted in Personal injury trust. Bookmark the permalink.

6 Responses to Personal injury trust fund

  1. Rach says:

    Hi Mark,

    Can compensation from abuse be put into trust in the same way as PI compensation?

    And is there still a 52 week disregard under Universal Credit?

    • Mark Thompson says:

      Compensation for abuse is paid “in consequence of a personal injury” whether the injury be physical or psychological. So yes, such compensation can be held in trust.
      The 52 week disregard applies to Universal Credit claimants, but remember, the 52 week period is a period of grace to set up a trust, not a period in which to spend the money.
      Read more about the 52 week disregard here.

  2. Andy says:

    Hi Mark

    A rather complex situation. I am a trustee on my mother’s PI account (she is the other one). I’m currently in severe financial straits. I have spoken to the Citizens Advice Bureau, they have suggested bankruptcy, but they have also said I should get my name removed from the trustee account. How would you go about this? Especially if you consider I DO NOT want mum to find out about my financial position?

    Thanks

    • Mark Thompson says:

      Bankruptcy is not my field, but I do not think being bankrupt means you cannot be a trustee, unless the terms of the trust mean you are disqualified.
      You are a trustee, so the trust fund is not yours, so is not at risk in your bankruptcy.
      I would go back to whoever advised you and find out their reason.
      You could retire as a trustee, but you will have to give mum a reason, whether it be true or false. Why not tell her?

  3. Jez Brandon says:

    If a PI trust is set up and money is drawn to eg buy a car, can that amount be paid back into the trust at a later date. ie can it be in effect considered to be a loan. Thanks

    • Mark Thompson says:

      A trust may only make a loan if the trust deed includes that power for the trustees.
      If the trust makes a loan which is repaid, the trust may receive that repayment and any interest. That is no different from the trust cashing in an investment.
      A loan made to the beneficiary of the trust should not be paid to the beneficiary, as once out of the trust the money will be seen as belonging to them for benefit purposes.
      The loan arrangement, which should be documented in writing, is quite different from simply adding personal funds to the trust. If your trust is for personal injury compensation, it may only receive personal injury compensation.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.