Protect your compensation
What is a personal injury trust?
When there is an award of compensation for personal injury, a trust arises when that award is put under the control of certain persons chosen by you called trustees.
The trustees must look after the compensation for your benefit and for any other persons you choose. You and the others who can benefit are called beneficiaries.
When the trustees are appointed they agree to act in the interests of the beneficiaries and not themselves. This is why it is called a trust.
The beneficiaries can benefit in ways set out in a document called a trust deed.
Even if there are other beneficiaries, you will be the main concern of the trustees.
Why should I bother?
If you receive compensation, even an interim payment, it will usually cut your means-tested benefits. That may cost more than you think - not having benefits can stop other services, such as free prescriptions.
Even if you do not receive means-tested benefits now, you might want to protect your compensation from the growing cost of long-term care.
What can you do with the money in a personal injury trust?
Your normal expenses of daily living which are supposed to be met by means-tested benefits such as gas, water, electricity, food, mortgage interest, council tax, most rents and certain payments for residential care will still need to be met by any means-tested benefits you receive.
Other things, that are not covered by benefits, such as your telephone bill, TV costs and the cost of care can be met from the trust.
The trust can also pay for a place to live, a new car, holiday and much more, if you take our simple step-by-step advice.
Who should you choose to be your trustees?
You need to pick two or three trustees who will look after the compensation that you put into the trust and make decisions about payments out from the trust.
We suggest family members plus one professional. Partners from our sister firm Bolt Burdon will be happy to provide this service for you. There is no extra charge.
Your choice of trustees is very important.
They must approve all payments. They must take proper investment advice. They must be fair-minded sensible people and not too young.
You might want to talk about your choice with us.
How much will it cost me to set up the trust?
- For compensation up to £250,000 - £1,250.00 plus VAT (£1,468.75)
- compensation over £250,000 - £1,450.00 plus VAT (£1,703.75)
Please remember: The trust can save you much more than it costs and fees are only paid when your compensation is received.