Personal Injury Trusts 

If you have been awarded compensation during or after a personal injury claim, you may find that you’re no longer eligible for certain means tested state benefits such as Income Support, Jobseekers Allowance, Council Tax or Housing Benefit.

Of course, any compensation awarded to you is awarded for a specific reason, such as to cover your lost earnings or to help you adapt your home. Being awarded compensation does not mean you suddenly have a large disposable income.

Placing your money in a Personal Injury Trust could allow you to continue to receive these state benefits. We have the UK’s largest dedicated Personal Injury Trust department and can provide expert help and advice on creating and managing a trust. Our lawyers can also advise on setting up a trust if one of your children has suffered an injury and been awarded compensation.

How Does A Personal Injury Trust Work?

Money held in a Personal Injury Trust can be accessed by “trustees”. Trustees manage the trust and will usually be you and your spouse or a parent, but may also be solicitors. The trustees hold the money on trust for the person who benefits from the trust, known as the Beneficiary. If money is needed from the trust, all trustees must agree to its release.

The trustees must exercise their powers for the benefit of the beneficiary and are governed by a Trust Deed, which sets out rules and obligations.

Your compensation should be placed in a Trust bank or building society account that will be set up by your trustees. This money should be held separately from your personal finances and all trustees would sign all cheques or authorise transactions.

As well as the money held in your trust, you and your partner can have £6,000 (between you) without it affecting your benefits. You can top up your own account with money from your trust.

How We Can Help You Set Up And Manage A Personal Injury Trust

With the country’s largest dedicated department, we have an excellent reputation for helping people with Personal Injury Trusts and related issues. We recognise that this may be a stressful and difficult time in your life, so we will work quickly and effectively to help you and you family. Our specialist solicitors can advise you on:

• What benefits you are entitled to or may become entitled to in the future
• Whether a Personal Injury Trust is the right option for you
• Who to appoint as trustees
• Preparation of trust documents
• What information to provide to your bank or building society to set up the trust bank account
• How to run your trust in future to protect your entitlement to benefits
• What documentation to provide to the Benefits Agency and Local Authority to ensure your benefit entitlement is protected
• Tax returns for your trust
• Accounts for your trust
• Appointment of new trustees or removal of existing trustees

For more information on personal injury trusts, read our frequently asked questions.