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personal injury trusts & trustees compensation

Personal injury trusts are set up by or on behalf of people who have suffered a personal injury and have received compensation for those injuries. The compensation is paid to the trustees who manage the trust and hold the compensation for the beneficiary.

Once the compensation has been paid to the trustees (in accordance with the current rules), it is disregarded for the assessment of eligibility to certain state and local authority means tested benefits (both present and future) including Jobseekers Allowance, Income Support, Council Tax and Housing Benefit. This means that if you are receiving state benefits at the time of an award of compensation and that compensation is paid to the trustees of a personal injury trust, the award will have no effect on your benefits.

Any compensation, whether it is an interim or final payment, paid to the trustees is held by the trustees for the benefit of the individual receiving the compensation.

Our Court of Protection Department is able to:

  1. Offer you advice on whether a Personal Injury Trust will be suitable to your needs
  2. Advise you on the most appropriate people to be appointed as trustees of your Personal Injury Trust
  3. Act as professional trustees of your Personal Injury Trust if requested to
  4. Prepare a Personal Injury Trust to cater for your individual needs
  5. Explain to you how your Personal Injury Trust should be operated to protect your benefits, as applicable
  6. Write to the appropriate authorities explaining why any compensation you have received should be disregarded when they are assessing your entitlement to any means-tested benefits

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How do I set up a personal injury trust?

Once you have made the decision to set up a trust, your solicitors can draft the trust deed which will govern how your trust is administered. It will also be necessary to choose your trustees (who will manage the trust).

What do Trustees do?

Trustees have the legal power to manage and administer the Trust. This includes opening the trust bank account and making any transactions on behalf of and in the name of the Trust.

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