If you receive certain means-tested benefits from the state or local council, you may be in danger of losing your entitlement to them following the receipt of a personal injury compensation payment.
What is a Personal Injury Trust?
By establishing a Personal Injury Trust to hold any compensation for a personal injury, you protect your means-tested state benefits (and other sources of state-funded financial assistance).
Instead of receiving the personal injury compensation, the payment will be made to a Personal Injury Trust established for this purpose and held by your chosen Trustees on your behalf.
Once the Personal Injury Trust is set up, an account is opened by your Trustees (these individuals may be family, friends or a professional such as a solicitor) for your benefit and is run on the understanding that they look after it in line with your wishes and a set of rules designed to protect you.
You have a period of 52 weeks from the date that you receive the first payment per Personal Injury claim to set up a Personal Injury Trust.
Beyond this 52-week period, if you are in receipt of means-tested state benefits, your compensation personal injury compensation will counts as capital when assessing your entitlement to means-tested state benefits.
How can Burroughs Day help?
We will provide simple and straightforward advice to help you decide whether a Personal Injury Trust is suitable for you.
We will guide you through the process and can assist with drafting a suitable Trust deed, helping your Trustees to set up a suitable bank account and advising your local benefits office that a Trust has been established.