Personal injury trusts and how I can help

Personal injury trusts – how I can help

My aim is to help you decide if a personal injury trust is right for you. I deal with most clients by telephone, email and letter and a meeting is rarely necessary. I will:

  • Help you decide if a trust for your compensation is right for you.
  • Agree a fixed fee so you know the cost – £480 including VAT.
  • Gather information and documents.
  • Prepare a trust deed.
  • Guide you through signature and witnessing.
  • Guide you in opening a bank or building society account for the trust.
  • Give notice to the agencies handling your benefits claim.

You really have helped us as we had absolutely no idea what we had to do and you have not only made it easy but removed a very very large amount of worry and made us feel better and that things have been dealt with correctly.

I hope you will find me to be flexible as I know you have other calls on your time. I am willing to talk out of office hours and I know many people can only email in the evening or at weekends.

Once I have the information I need I will send you a draft trust within a couple of days. Once agreed I will send the trust document to you by post and once signed you can set up your bank or building society account. I think it best you set up the account locally as the account should be run with only a cheque book and bank transfers if the signatories can visit a local branch.

As the trust is set up I will provide lots of information. Once this process is complete you and your trustees should confidently be able to manage your trust.

To help you decide if a trust is necessary if you do not claim benefits please click here and if you do claim benefits please click here.

For the points you must consider in setting up a trust and the information I will need please click here.

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.

25 Responses to Personal injury trusts and how I can help

  1. Amira says:

    Hello Mark .

    I am waiting on a cheque for £60,000.00 for a medical negligence claim . I marred and i have child 7 years old my husband is working 15 h a week we received housing benefits and child tax and child benefit we pay council tax every month £30,my questions ARE will be affected tested benefits or no. my Lawyer told may be affected when your capital (savings) exceeds 60,000.00 it would be advisable to set Special Needs Trust ,at the conclusion of your claim .this is a way of making sure that you keep your right to means tested benefits following receipt of your personal injury award .Also i need to understand how is working the if i open Special Needs Trust from A-z please like Are they limited windrow the money from my account or What are the advantages and disadvantages of type this account. Any advice would be greatly appreciated .

    all the best
    Amira

    • Mark Thompson says:

      The choice for you is simple, as holding money above £16,000 will stop your benefits and money between £6,000 and £16,000 will reduce your benefits. You therefore need a trust to hold the compensation, so you can keep and use your compensation and keep your benefits.

      I think my website page will help you.

      There are very few restrictions on how the trust fund can be used, the golden rule being not to channel the trust money through your personal bank accounts.

      Avoid confusion as to terminology. You simply need a trust to hold personal injury compensation. These are given a number of names, one of those being special needs trust.

      The way I work and the cost is set out at here.

  2. Kerri says:

    George Shepherd mentionned that he brought a car with 6k of his 16k trust fund and you didn’t state that it was risky him doing so. On previous comments (previous page I think) I have noticed that you’ve said a car may not be a good choice of spenditure, I guess because that then makes it a personal belonging and something someone could sell for the cash. I don’t want to fall into that trap. Ldm stated they require a car and you hadn’t advised whether to purchase one from the trust or not. I am curious as to whether spending almost all of the trust fund on a car would be allowed? I need a new car and the 6-10k I am expecting would allow me to purchase one that is a couple of years old & not 9yrs old like my current one. This is all I “need” & something that will benefit me as I struggle with my disabilities with limited room in my little car. Can you advise me please as to whether I’d be allowed to purchase a car with some or ALL of the trust fund money? Also can you clarify that its not just a bare trust fund that is required to keep the money protected from my means tested benefits but that also a TRUST DEED has to be written? Have I got that right? Whats the average fee? Yours being £480. Thanks.

    • Mark Thompson says:

      You should have a trust deed, which is a legal document which creates a trust. You need such a deed to create a bare trust.
      Provided the car is purchased direct from the trust, I see no problem.
      People get into difficulty by buying a car with the majority of their compensation, without setting up a trust. In that situation, the car has been purchased with personal funds. The benefit agencies will probably take the view such a purchase is not reasonable for someone in receipt of benefits. The new car owner will be treated as still having the money, called nominal capital, which will be counted against their benefit entitlement.
      Protect the compensation with a trust and spend directly from the trust.

  3. Christine says:

    Hi Mark, you have stated on your website;
    “I currently work on a fixed fee of £480, which includes VAT, with no ongoing cost and only limited administration for the trustees.”
    What does “only limited administration for the trustees” mean? Will the trustees have administration costs to pay?

    • Mark Thompson says:

      The trustees will operate the trust bank account and any investments made by the trust. These are straightforward tasks the trustees will be used to in their own lives.
      If a bare trust is used, liability for tax on trust income or capital gains is the liability of the compensated person.
      Unless a significant amount of money is involved, I doubt the trustees will need professional support.

  4. Dave says:

    Hi Mark
    We have found a new home that I’m paying for from my trust,we are not sure what to do with our current home.if we sell or rent,can proceeds transfer to the trust?
    Many thanks Mark

    • Mark Thompson says:

      The trust can only hold assets derived from personal injury compensation.
      If you are going to hold two properties, then the one you rent out should be held by the trust, as the trust can then receive rent and not reduce your benefits.
      You could sell your existing house to the trust, or buy the new one with a loan from the trust, the loan to be repaid by transfer of the current property to the trust. Of course that depends on the value of the two properties. You should also check your trust deed to make sure the trustees can make a loan.
      At the moment, ownership of the house you live in, plays no part in your benefits entitlement. Property ownership is relevant if you ever need local authority care.

  5. Ldm says:

    Hi. I have just received offer of, and sent form to accept £22k personal injuries for anuse from a child. I receive ESA, PIP, HB, CT support.

    I hadnt known about trust funds snd sent my form to include my current bwnk details. I have considerable health difficulties ehich prevent me from working and am looking to set up a business with my payment. To do this I need to pay some debts, purchase equipment and a car and purchase a hydropool to help with my debilitating pain which impacts on my mobility . This money is my chance of managing ny health in a manner I couldn’t before.

    I am now unwell with anxiety because I haven’t a trust fund set up and am worried.

    What are my options please.

    • Mark Thompson says:

      Not to worry, you have not created a problem.
      If you are receiving benefits, or likely to need benefits, you should set up a trust now. You can hold the compensation in your current account and then transfer it over to an account set up by your trustees.
      Your planned expenditure should be made from the trust, not from your personal account.
      Setting up the trust should not take long so please visit this page to see how i work and the fixed fee I offer.

  6. Dave says:

    Hi mark
    In regards to a trust fund, is there any special steps to be concidered when setting out a will?
    Thanks
    Dave

    • Mark Thompson says:

      I will answer only for bare trusts, which are the most usual trust for personal injury compensation.
      A trust identifies the beneficiaries, including who is to benefit from the fund when the person who set up the fund dies. I usually advise that any trust fund remaining at death should be dealt with under the provisions of a will. A will can be changed, so there is more flexibility.
      The trust fund simply forms part of the money and property left by the person who has died, known as their estate, and is dealt with as part of the estate.

  7. john leadbeater says:

    Hi mark, it’s looking like my wife may get some criminal injuries compensation for historic sexual abuse, we have debts to pay off with some of the money so where do we stand on claiming benefits and opening a trust.

    thank’s john

    • Mark Thompson says:

      Set up a trust first and pay the compensation into a bank or building society account set up specifically for the trust. The debts can then be paid from the trust. You will avoid squabbles with benefit agencies if you do things in that order.

  8. In 2008 I opened a PI trust fund £16,000. I bought a car £6,000. Wold like to replace some of this money from my current account. Is this OK……….Regards George Shepherd

    • Mark Thompson says:

      Absolutely NOT. It is only personal injury compensation in a trust which is ignored for benefit purposes. In addition, your trust will probably be written to receive only personal injury compensation, so you cannot spend some of heh compensation and then top it up with money which is not compensation.

  9. Mr B A J says:

    Hi. I am on esa and housing benifit and child’s tax credit. In 2014 I had a accident and it is looking like I an going to get above 2500. But I also had a accident in September this year and that has been settled for 4500. This means I could have around 7000. Now 2700 of the secords claim is for the bike that was written off. Can I put 1000 into a junior isa to bring me below the 6000 so I don’t get penalised ?

  10. George Robertson says:

    Hi Mark,
    Just wanted to say thank you for your very clear explanation of this matter. I work in a housing support sevice and a young person we support is due a Personal Injury Payment, and is receiving means tested benefits. Your site here has been the clearest explanation of this that I have found so far, and hopefully I’ll be able to explain this in a way the young person can understand. Thank you very much.

  11. medhat says:

    I am on benefits H.B, ESA AND PIP . i HAVE wife and 3 kids. I got 150k from personal injury compensation December 2115 . but I got interim payment £5000 in first September 2014 over a year ago.and i didn’t setup the personal injury trusts until now .
    can i setup personal injury trust now? and the benefits will be the same not affected ?

    • Mark Thompson says:

      You can set up a trust now as there is no time limit for setting up a trust.
      The only problem caused by not setting up a trust immediately is that the money you received and spent before the trust was set up forms part of your personal money and its use can be assessed by the benefit agencies. Expenditure from a trust is not subject to that same analysis, but expenditure from your personal accounts is. It is for this reason I do not advise people to rely on the 52 week disregard as it can be a trap. The 52 week period i sthere to allow you to set up a trust, not blow the compensation.

  12. I have a p.I.trust, what are complications in adding sums to it.

    Thanks

    • Mark Thompson says:

      A trust for personal injury compensation can only hold funds to the extent that such amounts are or are derived from a payment made in consequence of a personal injury to yourself.
      I write trusts so any personal injury compensation can be paid into that trust; not limited to one single claim.
      What you cannot do is pay in additional funds which have not come from personal injury.

  13. Ian Cockbain says:

    Hi. I’ve got a personal injury trust (bare). I’ve asked my solicitors for cost to remove one of the trustees and to add another. They say it will be a couple of hundred pounds to do this. Is this a fare price.
    Regards Ian Cockbain

    • Mark Thompson says:

      You will have to check the trust document to see who has the power to add and replace trustees. It is usual for the “settlor,” which means you, to have this power. A further deed is necessary to make the change and the price offered seems fair. Like all such documents it involves detailed time-consuming work.

    • Coralie says:

      Good to find an expert who knows what he’s taknilg about!

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