Personal injury trust and the cost of long term care

A personal injury trust can be a very good idea even if you are not receiving State means-tested benefits or local authority care. You must consider your situation today,  your situation in the future, and do exactly the same for those you claim benefits with.

A local authority must provide accommodation for vulnerable adults who fall outside the responsibility of the National Health Service. But the local authority can charge for the service if a person’s capital is between £14,250 and the upper capital limit which currently is £23,250.

If you need care and have received compensation for a personal injury, that compensation can be ignored in this capital assessment if it is protected by a personal injury trust. Setting up a personal injury trust is an obvious step if you are already receiving care. A trust can be just as necessary if you do not require care today, but may need it in the future.

Care at home funded by a local authority has less strict rules. The guidance for local authorities suggests they should use similar financial rules to those that apply to residential care. So again compensation sitting in a bank or savings account might be enough to prevent financial support from your local authority.

The temptation is to say the compensation will be spent long before I need worry about care, but the other side of the coin is that a personal injury trust need not be a nuisance, and it might save you a lot of money in the future.

Solicitors who advise a personal injury trust is only necessary for those receiving means-tested benefits are creating a problem for their client, and themselves.

Take your time, think about yourself and your family over the long term, and take the right advice.

Related content

Personal Injury trusts and how I can help
Personal injury trusts guide

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