Personal Injury Trust

Personal Injury Trust

What is a Personal Injury Trust

Personal Injury Trusts are a simple way to protect your right to receive means assessed benefits and means assessed local authority care if you have received an award of compensation for personal injury or clinical negligence.

Protecting you means-tested benefits

If you are receiving state benefits, or may do in the future, and your compensation will result in you having household personal assets and savings in excess of £6,000, then these benefits may be reduced. Should your personal assets exceed £16,000 your entitlement to means tested benefits may be stopped completely. This may result in your compensation monies being depleted.

A “Personal Injury Trust” allows you to protect your entitlement to means-tested benefits and ensure any local authority support is maintained. If your compensation is paid into such a trust then the money is excluded from the means assessment for both benefits and local authority care and support.

How does the Trust work?

The usual form of trust that is recommended results in you and a co-trustee of your choice having authority to make payments from the trust, and you would be able to dissolve the trust at any time. You can have family or close friends appointed as trustees or if necessary you can appoint a Professional Trustee who would be a partner of this firm.

Your compensation is normally held in a separate trustees’ bank account which is administered just like any other bank account.

When should the trust be set up and do I really need it?

The benefit regulations allow for a period of grace in which your award will not be taken into account by the Department for Work and Pensions. The period will start on receipt of any payment made as a consequence of injury, for example interim payments, and is set at 52-weeks.

Send us your enquiry

  • This field is for validation purposes and should be left unchanged.

Key people


Latest news

See all