Personal Injury Trusts

Claimants in receipt of means tested state benefits may find that their benefit entitlement is lost or reduced upon receipt of an award of damages for personal injury. Claims above £6,000 in value have the potential to impact upon benefits, whilst those of £16,000 or above can extinguish entitlement completely.

The answer lies in the Personal Injury Trust.

The benefits regulations allow capital from a personal injury award to be disregarded , just as long as the award is held in trust. In other words, claimants can keep the capital from their award and retain vital benefit income.

The Personal Injury Trust is an uncomplicated way of managing an award of damages, very similar to the award sitting in a separate bank account. The award can be spent as required, as long as a few simple rules are followed.

Personal Injury Trusts can also be useful in protecting future benefit entitlement, where the claimant’s employment prospects are risky, or where health may deteriorate leading to means tested local authority benefits becoming available. Also, a Trust can be helpful in protecting the young or vulnerable.

For more information go to the Personal Injury Trust  website.

What to do next

Call our Personal Injury Department on 01908 692769

We are Members of the Law Society’s Personal Injury Panel and the Association of Personal Injury Lawyers.