Personal Injury Trusts
Payments received as a result of an injury, including compensation, are likely to adversely affect entitlement to means tested payments e.g. state benefits.
For 52 weeks from the date of the first payment, such amounts are disregarded for the purposes of means assessment, but will be taken into account at the end of that period and must accordingly be declared.
There is however a method by which the entitlement to such payments may be continued beyond the 52 week period.
Personal Injury Trusts are trusts which exist to allow an injured person to benefit from exemptions specifically available to injured people within the means tested and care rules.
Where funds which derive from an injury are placed into a trust, the funds within that trust are disregarded for the purposes of assessing what means tested benefits the injured person may be entitled to.
During the course of dealing with your claim we will discuss with you whether you are in receipt of means tested payments or are likely to be at some point in the future. If so we will consider with you whether it would be in your best interests to create a trust.
Naturally you would be the beneficiary of the trust and entitled to the funds within it.
It is important that you are aware of these provisions and that they be discussed with you during the course of your claim. However, the creation of a trust is not appropriate in all cases and the benefits which may arise always have to be assessed in the context of the cost of setting up a trust and any recurring cost of dealing with it.
At BTMK we can assist you in fully considering your position.
If you wish to discuss this or any personal injury matter please do not hesitate to contact us on 01702 339222.