Personal Injury Trusts – Protecting your future
Accidents can happen unexpectedly, changing our lives in an instant. Whether it’s a car accident, a workplace incident, or a medical negligence case, a personal injury can leave lasting physical, emotional, and financial implications. In such instances, receiving compensation for your injuries is crucial to help you rebuild your life. However, managing these funds properly is equally important to secure your future. This is where a Personal Injury Trust can help.
Key takeaways
- A Personal Injury Trust is a legal arrangement that allows you to protect your compensation award.
- The primary purpose of a Personal Injury Trust is to protect your award from being treated as capital when assessing your financial eligibility for benefits.
- Personal Injury Trusts provide a structured and accountable framework for managing your financial affairs.
- Setting up a Personal Injury Trust involves seeking legal advice from a solicitor who specialises in personal injury trust law.
What is a Personal Injury Trust?
A Personal Injury Trust is a legal arrangement that allows you to protect your compensation award while preserving your eligibility for means-tested benefits, such as Universal Credit, housing benefits, or local authority care. By placing your funds into a trust, you can ensure that your assets are managed responsibly, ensuring long-term financial security without jeopardising any state support you may receive.
Here are a few key reasons why a Personal Injury Trust could be beneficial for you:
- Protecting Means-Tested benefits: If you are currently receiving means-tested benefits, they could be stopped or reduced if you receive a significant compensation award. Placing your funds into a Personal Injury Trust will prevent this from happening, allowing you to continue receiving the support you need.
- Preserving long-term care options: If you require long-term care due to your injury, the state may contribute towards the costs. However, if your compensation award exceeds a certain threshold you may be expected to self-fund your care. By setting up a Personal Injury Trust, you can ensure that your compensation is not taken into account when determining your eligibility for financial support from the state.
- Managing Funds Responsibly: Personal Injury Trusts provide a structured and accountable framework for managing your financial affairs. By appointing trustees, who are usually family members or professionals, you can ensure that your funds are invested, spent, or distributed in a way that aligns with your best interests and long-term goals.
- Protecting Vulnerable Beneficiaries: Personal Injury Trusts are an excellent tool for protecting individuals who may be vulnerable in respect of the management of their finances, particularly in dealing with large sums of money.
- Avoiding Third-Party Claims: Depositing your compensation award into a Personal Injury Trust can effectively safeguard it against any future claims that may arise, such as divorce settlements, business failings or bankruptcy.
Setting up a Personal Injury Trust involves seeking legal advice from a solicitor who specialises in personal injury trusts law. They will guide you through the process, ensuring that the trust is established correctly and tailored to your individual needs.
Personal Injury Trusts offer a valuable solution for protecting your compensation award, securing your financial future, and preserving your entitlement to means-tested benefits. By considering this option, you can gain peace of mind, knowing that your funds are being managed responsibly and in your best interest.
How we can help
Osborne Morris & Morgan’s expert solicitors will be able to walk you through every step and every problem you are likely to encounter. If you appoint us as Trustees we also produce annual trust accounts for the clients to review and will file the Trust, as well as personal Tax returns.
So contact us today by calling 01525 378177 or email info@ommlaw.co.uk and take the first steps in setting up a Personal Injury Trust.
