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 which 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.