Personal Injury Trusts and Means Tested Benefits
A Personal Injury Trust can ensure that a person who receives a large personal injury compensation settlement remains eligible for any state benefits they’re claiming.
If you’ve been awarded personal injury compensation or received an insurance policy payout, you might want to consider putting the money into a Personal Injury Trust for protection.
Otherwise, it could affect your eligibility for means-tested benefits, such as Universal Credit and Housing Benefit.
You might benefit from a Personal Injury Trust if your compensation or payout exceeds £6,000. This is because if you have more than £6,000 in your savings, the amount you receive in benefits could be reduced, and if you have more than £16,000 in savings, they could be stopped entirely.
If you think you might need a Personal Injury Trust and would like to find out more, get in touch with our Personal Injury Trust Lawyers for expert legal advice.
A Personal Injury Trust is used to hold and manage money you’ve received through personal injury compensation. The money held in the trust is managed by appointed Trustees who will handle the money on behalf of the Beneficiary (the person benefitting from the trust).
The Beneficiary will usually be a trustee themselves alongside a partner, unless they’re a child, in which case, their parents are likely to act as their Trustee. A professional can also be appointed. All Trustees must agree to the release of any money from the trust.
Any funds in a Personal Injury Trust won’t be factored into your entitlement to means-tested benefits, including:
As well as protecting your means-tested benefits, there are many other advantages to setting up a Personal Injury Trust:
It’s best to set up a Personal Injury Trust before you receive your funds, so you don’t risk losing any benefits. The first payment you get after a personal injury won’t affect your entitlement to means-tested benefits and services for the first 52 weeks. After this, any further payments will affect your means-tested benefits, so it’s best to get your Personal Injury Trust set up as soon as possible.
Even if you’re not entitled to means-tested benefits now, circumstances can change, so it can never hurt to be prepared with a Personal Injury Trust. For example, a divorce, separation, job loss or moving into a care home could all affect your entitlement to means-tested benefits.
Fill in the form below to get in touch with one of our dedicated team members, or call our team today on: 0808 239 3227