What is a Personal Injury Trust?
14 July 2017
A Personal Injury Trust is when compensation received from a personal injury claim is held in a Trust. The huge advantage of a Personal Injury Trust is that the individual will not lose their right to receive state means-tested benefits.
Most personal injury claims can be dealt with on a No Win No Fee basis.
How Does a Personal Injury Trust Work?
Trusts work by holding money aside for a named beneficiary. The Trust is managed by people called ‘Trustees’.
There are different types of Trust available, one of which is a Personal Injury Trust. These are used in personal injury and medical negligence claims, and are when the compensation settlement awarded to the person making a claim (the ‘Claimant’) is held in a Trust.
This has a number of advantages, one of which is that the lump sum of money will be held separately from your other assets. This means that if you receive state benefits, you won’t lose your right to receive them.
Also if you need social care, your compensation settlement won’t be depleted. This is important because the settlement is there to reflect the physical, emotional and financial damages you have suffered. As such, you’ll need the compensation to cover your losses, which can include a loss of income.
The Trust will be managed by at least two people called ‘Trustees’. Usually you can be a Trustee yourself, so you’ll still be able to access the money.
Personal Injury Solicitors
Every year our Personal Injury Solicitors secure millions of pounds in compensation for people injured in accidents across the UK.
When you make a personal injury claim with Co-op Legal Services, we can advise you on the need for a Personal Injury Trusts. If we feel that it is something you could benefit from, we’ll recommend that you set up a Trust, and will provide you with assistance.