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Trusts

Personal Injury Trusts

If you or a loved one has received compensation from a personal injury claim, putting it in a personal injury trust can ensure you’re always provided for and give you peace of mind for the future.

Some of the benefits of setting up a personal injury trust (PIT):

  • It helps shelter the compensation from an assessment for means-tested benefits
  • It can be tax-efficient
  • It ensures the money will last the rest of your life and be dedicated to your care needs

Putting compensation money into a trust can also protect it from being used in the wrong way by others. This is especially important if the trust is for a child or vulnerable adult. It can also protect your assets from a claim against your estate – i.e. in cases of divorce or bankruptcy.

As the largest personal injury firm in the country we have helped thousands of people manage their money following a life-changing injury. Our solicitors have considerable experience setting up personal injury trusts and will work closely with financial advisors to create a bespoke plan tailored to you and your needs.

Call us today on 0370 1500 100 – or fill out our online form and we’ll call you back.

Experts in tax, trusts, financial management and public law
Largest personal injury firm in the country
Offices in 14 locations across the country
Experts in creating trusts tailored to you and your needs

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Personal Injury Trusts - More Information
    • How Does A Personal Injury Trust Work?
    • A personal injury trust is no different from a regular trust, except that it holds personal injury compensation. It can be set up by the person receiving the compensation (called the beneficiary), or by someone else on their behalf if they’re a minor or they’ve lost mental capacity.

      Trustees are appointed to look after the trust and, if appropriate, make decisions on behalf of the beneficiary.

      Ideally the trust will be set up before the first compensation payment is made, so that the money can go straight into it.

    • How Can A Personal Injury Trust Help With Means-Tested Benefits?
    • If your personal injury compensation goes directly to you, instead of into a trust, it will be included in a financial assessment for any means-tested benefits. This means you could lose benefits you should be entitled to.

      Depending on the nature of your (or your loved one’s) injury, you may be eligible for a number of benefits and support services, which you should be able to take advantage of.

      By setting up a personal injury trust to hold any compensation, you can ensure you’re still able to claim and benefits you’re entitled to.

      We have extensive experience helping clients access benefits and our Public Law team can help you challenge decisions from your Local Authority or NHS care provider about the funding you can receive.

    • Who Can Be A Trustee?
    • The trustees of a personal injury trust can be anyone you choose. You can appoint yourself as a trustee, even if you’re also the beneficiary of the trust.

      Trustees will be responsible for managing the money in the account according to the terms on which the trust has been established. This could include:

      • Running the bank account
      • Making investments
      • Buying or selling a property
      • Arranging care costs

      Choosing reliable and responsible trustees is very important, especially if the beneficiary has suffered any sort of brain injury and no longer has mental capacity to make their own decisions.

      We’ll be able to advise further on choosing the right trustees and how to protect the trust from mismanagement. Irwin Mitchell is also able to act as a trustee if you’d like.

    • When Do I Need To Set It Up?
    • It’s best to set up a PIT before you’ve received the first pay out of compensation. At the latest, it’s advisable to set it up within 52 weeks of this payment, as your means-tested benefits could be put at risk if you don’t set it up within this time period.

    • How Can Irwin Mitchell Help?
    • We’re experienced in personal injury trusts and can help you with both the setting up and running of the trust. Our tax and trust experts can ensure it’s tax-efficient and advise on any issues around compliance.

      We can also advise on benefits you’re entitled to and help you challenge any adverse decisions from the Department of Work and Pensions or your care provider.

      Our wills and probate team will be able to help you restructure your Will to make sure the trust is taken into account and doesn’t attract unnecessary tax for your estate.

      If a loved one has lost capacity after a personal injury, we can also review any wills that had named them as a beneficiary. We’ll make sure any money they inherit is structured in the best way. This will ensure they won’t spend outside their means or fall prey to someone trying to take advantage of them in the future.

    • How Much Does It Cost?
    • The cost for setting up a personal injury trust starts at £750 plus VAT. The cost will be tailored to each trust, however, depending on your specific needs.

    • Meet The Team
    • Our Personal Injury Trust department is the largest in the UK. We can give you expert help and advice on creating and managing a trust, or setting one up on behalf of someone else.

      We have an incredibly strong multi-disciplinary practice, meaning we can draw on the expertise of our tax, trusts, and probate specialists in-house.

      From financial planning and investments, to advice on care plans and benefits, we have all the expertise you need under one roof.

      Meet the team

Irwin Mitchell are a very professional, trustworthy and straightforward company to deal with. I would recommend them to anyone."

Frank Clayton, client

Frequently Asked Questions

Why Choose Irwin Mitchell?

We are the largest personal injury firm in the country, as well as having experts in tax, trusts, financial management, and public law. We not only secure compensation for our clients, but also help them manage it afterwards, making sure they have the care and resources they need for the rest of their life.

We understand how large value settlements work in real terms and can help you manage your budget and access the care you need for the rest of your life. Our client liaison managers can help you access practical support and resources, and can work with our conveyancing team to buy property adapted to your needs.

We have financial advisors in IM Asset Management working exclusively with large compensation pay outs for people who’ve had a serious personal injury. They work with our tax and trusts experts to advise on the investments that are right for you.

In cases where someone’s injury has affected their mental capacity, we also have vast experience in deputyships and the Court of Protection, making sure their best interests are looked after.

Call us today on 0370 1500 100 – or fill out our online form and we’ll call you back.

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What Are The Tax Rules For A Personal Injury Trust

The trust is usually taxed as if it was your own personal income. However, the exact amount of tax you pay depends on:

  • The structure of the trust
  • The nature of your (or your loved one’s) disability
  • Your entitlement to certain benefits

Our experts can advise you on what tax is due and how to make the trust as tax-efficient as possible.

Call us today on 0370 1500 100 – or fill out our online form and we’ll call you back.

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We're always proud to be recognised for the work we do for our clients and have been named as a leading firm in the latest legal guides - which provide information and recommendations about lawyers and law firms in the UK.


UK Chambers & Partners Leading Firm 2018 Leading Firm - Legal 500 2017 Private Client Team of the Year - Legal Business Awards 2018

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