We’ve mentioned the use of Personal Injury Trusts as a way of protecting means tested benefits. This is one of the most important advantages of opening a Trust because if you’ve suffered an injury, you may have to give up work but your outgoing costs won’t stop. In fact, they could go up with the expense of care services and home adaptations.
State benefits can support you if you’re in this position, but these will be based on your means, which will include your compensation if it’s outside of a Trust. If your compensation award is above a certain amount, you might not be considered eligible for state benefits, including:
- Housing benefit;
- Council Tax benefit;
- Disabled persons Tax Credit;
- Pension Credit;
- Job Seekers’ Allowance;
- Income support;
- Universal Credit;
- Child Tax Credit;
- Employment and support allowance.
Setting up a Personal Injury Trust will make sure your compensation can be used as intended, rather than as a replacement for the state benefits you’re entitled to.