Personal Injury Trusts

We can help you to protect your entitlement to means tested benefits by creating a Personal Injury Trust. Contact Sue Bowler today on freephone 0800 834 627 or email suebowler@coffinmew.co.uk and we will contact you within 24 hours to discuss your enquiry.


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

If you receive means tested benefits or means assessed local authority care then your entitlement to these will be affected if you receive an award of compensation.

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. It would only be after your assets had fallen back below £16,000 that you would qualify for reconsideration of these means-tested benefits. However, this would be on a proportionate basis until your savings/award was depleted, in most cases, to below £6,000.

A simple arrangement called a “Personal Injury Trust” is the only legitimate way to ensure that your entitlement to means-tested benefits and 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.

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

Disposing of the compensation monies so that you have only £6,000 left, either by spending it, repaying debt or giving it to a friend or relative, may cause you to be fined and have your benefits stopped under the Department for Work and Pensions Deprivation of Capital Rules.

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. Should you believe that within this period you will deplete your household personal assets and savings below the lower threshold of £6,000 then a Trust may not be necessary.

We can assist with the following:

  • Advising whether a Personal Injury Trust is suitable for you and, if it is, how it would work
  • Preparation of the Personal Injury Trust
  • Act as professional trustee

If you would like further information please contact us on 023 9238 8021 or click below to send an email.

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