Aftercare
After your claim is won
A Personal Injury Trust
If you are receiving means tested benefits you can make sure these benefits are not reduced because you receive compensation by setting up a Personal Injury Trust
The costs process
When you win your claim it is usual for the Defendant to pay all or most of your legal costs. However deciding how much the Defendant must pay can be a lengthy process. If we are unable to agree how much they must pay the court will decide and if the court has to decide the process can take in excess of 6 months. We have a specialist team who work independently to our personal injury lawyers to endure the costs process is dealt with speedily and to your advantage.
Investment advice
Our sister firm Bolt Burdon has a team of independent financial advisors who frequently advise clients in the investment of large compensation awards. We will make a personal recommendation to an appropriate advisor.
Rehabilitation
In many claims for damages for personal injuries, the claimant's current medical situation, and/or the long-term prognosis, may be improved by appropriate medical treatment, including surgery, being given at the earliest practicable opportunity, rather than waiting until the claim has been settled.
Case study
Tom Smith is in injured in a car accident and cannot work. He receives income support (£58.00 a week) and housing benefit (£90.00 a week.) A total of £148.00 a week.
He is successful in his claim for damages and is awarded £50,000.00. As a result, his benefits stop.
Even if his award grew by 5% a year (£2,500.00 a year, which is £48.08 a week) he is still worse off by £99.92 a week.
By setting up a trust before his damages are paid to him, Tom is not considered to own the £50,000 and will continue to receive all his benefits.
The benefits saved in this case will pay for the cost of setting up the trust after just 15 weeks.
The next step - Quick. Simple. Money Saving. Inexpensive. Peace of Mind
Please call Rod Smith at Bolt Burdon to discuss how a trust for damages can save you money.
Rod Smith 020 7288 4732
How the trust can work for you
Your right to means-tested benefits
This will be reduced by the amount of "capital" that you own over the current threshold of £3,000.00.
You must not let the value of your money and investments exceed this amount.
Capital does not include your home, its contents or your car.
Means-tested benefits are also affected by "income", for example, wages and pension.
However, capital and income arising from any form of personal injury trust is disregarded for the purposes of calculating your right to means-tested benefits provided it is held in trust or is paid out and used carefully for your benefit.
Take care when making payments out of the trust
You do not want to cross the £3,000.00 threshold.
This includes payments by the trustees directly to your partner and children.
Joint resources, like a joint bank account, must also not cross the threshold.
Examples of the payments that can be made
A home, personal possessions, including cars, costs of medical and therapeutic care and holidays.
These can be bought directly by the trustees making the cheque payable to the seller/provider or by refunding a willing third party who buys the item/service for you first.
The trustees should not pay for items which are covered by your means-tested benefits, for example, they can pay for rent and other housing costs only if these are not covered by income support or housing benefit.
Your trustees can also make a regular, weekly, payment to you of up to £20.00.
Your means-tested benefits
These should be paid into your own account and used to pay for the things that they are meant to cover - essential items and the normal expenses of daily living.
Your trustees should seek advice if they are unsure about making any payment, or the way it is going to be made.
We refer all our Personal Injury clients who may benefit from a trust to our sister firm Bolt Burdon who have extensive experience of setting up and running Personal Injury trusts.
For more information call
Rod Smith 020 7288 4732