Which payments can be protected by a personal injury trust?

A personal injury trust can protect most payments made in consequence of a personal injury

The regulations which govern entitlement to means-tested benefits tell us what sums are taken into account and which are ignored. Among those ignored are “any payment made to the claimant or the claimant’s partner in consequence of any personal injury to the claimant or, as the case may be, the claimant’s partner.”

The injury can be physical, psychological or psychiatric and need not be caused by a single physical incident.

So a personal injury trust can protect compensation for a personal injury plus many other payments “in consequence” of a personal injury. Here are a few examples, but this list is not complete:

  1. Compensation received from the Criminal Injuries Compensation Authority (CICA) for injuries caused by an assault.
  2. Compensation from the Motor Insurers’ Bureau for injuries caused by an uninsured or untraced motorist.
  3. Compensation for an accident which happened abroad.
  4. Compensation ordered by a criminal Court in respect of an injury you suffered.
  5. An Armed Forces Compensation Scheme award.
  6. Payments from other government compensation schemes.
  7. Charitable or public donations following an injury.
  8. Payments from insurance policies, for example accident or travel insurance.
  9. Payments from a Permanent Health Insurance policy made as you cannot work due to a physical or psychological condition.
  10. Payments from a professional negligence claim paid to compensate for a poorly handled personal injury claim.
  11. Some Employment Tribunal awards.

So you will se,e it is not just money from a personal injury compensation claim which can be protected by a personal injury trust. As I say the list above is not complete, but it allows you to see the breadth of protection available to allow you to claim benefits and local authority support for care.

If you are able to add to this list of payments in consequence of a personal injury please leave a comment below.

If you would like a chat without cost or obligation please call 01392 314086.

Personal injury trust fund to protect means tested benefits

Author: Mark Thompson

Personal injury and accident specialist solicitor

6 thoughts on “Which payments can be protected by a personal injury trust?”

  1. Good morning.
    Many thanks for the detailed yet clear, straight forward information on this site.
    My query regards whether there is a process which ring fences a brain injury compensation payout against divorce? How can I ensure such a payout is not considered as part of the matrimonial pot? I am not planning on divorce, but a friend’s recent experience has lead me to consider all future eventualities and to look at how my finances, property, pensions and will/inheritances are managed NOW so there are fewer nasty surprises in the future.
    Many thanks

    1. Once upom a time, only the earnings loss element of personal injury compensation was taken into account in a divorce, but no longer. The bare trusts I write will do no more than highlight the money was paid in respect of personal injury, but such a trust will not protect the money. There are other types of trust available, but you must think about tax and inhertance. I am glad you are not thinking about divorce, but if you want a comprehensive answer, contact a divorce specialist.

  2. Hi guys , if you set up a personal injury trust ( due to a car accident ) during a divorce would your X wife be entitled to any of your compensation that’s been placed in this trust ?

    1. Some years ago only the earnings loss element of personal injury compensation was taken into account in divorce proceedings. Now all compensation is taken into account, save the reasons for the compensation will be considered. If you have future medical or care needs you will have good grounds to argue the money should not be considered part of the matrimonial pot. You could make an agreement, rather like a pre-nuptial agreement if a spouse can be persuaded to agree.

  3. Hi, Thank you of the excellent information on your page. Can funds received as a critical illness payment as a result of an accident that has also had a personal injury settlement be placed in a personal injury trust?
    More so can a property purchased with critical illness funds be transferred into the personal injury trust?


    1. Trusts can protect any payment made in consequence of personal injury and that can include a payment under an insurance policy. If the payment is derived from personal injury it can be placed in trust so that may well include property bought with the compensation or the insurance payment.

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