How To Protect Your Compensation With A Personal Injury Trust

A Personal Injury Trust is a legal arrangement that holds your compensation award separately from your personal savings.

For anyone receiving damages after an accident or clinical negligence, it is often essential.

You may ask why it matters:

• Keep your benefits:
  • Means tested benefits like Universal Credit and Housing Benefits stop if you have over £16,000 in savings. Money in a Trust is disregarded, so you do not lose that vital support.

• Shield from pressure:
  • The Trust adds a buffer against family requests, scams or impulsive spending while you recover.

• Ring-fence for your needs:
  • It makes clear the money is for injury-related costs like care, equipment or housing adaptations. Courts are more likely to protect it in divorce or bankruptcy.

• Stay in control:
  • You can be a Trustee alongside someone you trust. You still decide how funds are used, but with safeguards.

• Tax neutral:
  • A standard “Bare” Trust means no extra Income or Capital Gains Tax just because the money is in a Trust.

Set it up within 52 weeks of your first payment to protect your benefits from day one.       

Even modest awards can affect benefits now or if you may need them later due to your injury.

A Personal Injury Trust is not about hiding money it’s about making sure the compensation does the job it was intended to do – that is to support you after life has been turned upside down!

If you’ve received or about to receive an award, speak to us before your compensation arrives so that we can provide you with the advice you need for you to then be able  to decide the best way forward.