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Personal Injury Trusts

A Personal Injury Trust can be set up when you are claiming compensation as a result of a personal injury, to hold any payments you receive and to protect any means-tested benefits you may be eligible to.

Our specialist solicitors can advise you on setting up a Personal Injury Trust and why that might be of interest to you, as well as helping to manage the Trust as a Trustee.

Creating a Personal Injury Trust is necessary in some cases because any compensation you receive which is not held in a Trust will be added to any other capital you have (such as any savings, investments or additional money in accounts) and may affect your eligibility to means-tested benefits. If the total exceeds £6,000, then the amount of means-tested benefits you receive might be reduced or stopped altogether. However, if your compensation is in a Personal Injury Trust, this will protect the money from counting towards your total capital.

It is not enough to simply give your money to a family member to look after. This could be seen as deliberate deprivation of capital, and your compensation may still be counted towards your entitlement.

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When should I set up a Personal Injury Trust?

A Personal Injury Trust should be arranged when you receive your first payment. However, you have up to one year to pay your compensation into the Trust, before it is counted towards your means-tested benefits entitlement.

You should speak to your solicitor about setting up a Trust in advance, so that any money you receive, whether it is interim payments before your case is settled or your final settlement amount, is protected for any current or future means-tested benefits entitlement.

Your compensation must be held in a specific trust bank or building society account and clearly separate from any personal finances. Our specialist solicitors can help you with this.

How do I access my Personal Injury Trust?

Trustees manage any compensation held in a Personal Injury Trust. There must be more than one Trustee who manages an account, and if you wish to access money from the Trust, all Trustees must agree to it.

Trustees are often your spouse or partner, parent or child, or a close friend. However, they may also be a solicitor if this is more appropriate for your circumstances. Having a solicitor as your Trustee can remove the stress and strain from your family and friends. A solicitor may also be able to make independent decisions more easily and be able to explain why any payments are or are not made and the reasons why.

Any Trustees should be chosen by you and should be someone you trust to make decisions in your best interests.

What can I use my Personal Injury Trust for?

There are specific things a Personal Injury Trust can be used to pay for without affecting your means-tested benefits.

These include:

  • Any care or support you need as a result of your injuries
  • The cost of a holiday
  • Purchase of a car and the cost of running it
  • Going to restaurants and eating out
  • Improvements or adaptations to a property
  • Any hobbies you enjoy or paying for the cost of a pet
  • Extra utilities, such as increased heating costs if this is required as part of your condition

The Trust should not be used for things such as:

  • Usual food shopping bills
  • Clothing and shoes
  • Ongoing utility bills
  • For rent, if you receive housing benefit (unless it is a top-up amount for more expensive rent)
  • To pay council tax if you receive council tax benefit

How can I set up a Personal Injury Trust?

Our specialist solicitors can help you and provide all the information you need about setting up a Personal Injury Trust. They can make all the necessary arrangements to set up the Trust for you, as well as acting as a professional Trustee if this is the best option for you and your family.

Contact the team today to discuss how we can help you and your family to achieve your best outcomes and lead fulfilled lives.

Contact us

Speak to David Hilton, our expert Court of Protection solicitor for a free consultation.

0800 988 7072

Alternatively, simply fill out the form and one of our team will get in touch at a time that suits you.

When you or your loved one is on the road to recovery, you want to do everything you can to make the journey as smooth as possible. We’re here to help you every step of the way.

At CFG Law, we take a different approach to serious injury claims. Our goal is to help you or your loved one get access to early treatment, comprehensive rehabilitation, and ongoing support. Our services go beyond expert legal advice to focus on your specific needs:

  • We work with medical professionals to get the best treatment for you
  • Our team will help you to access early and emergency funding
  • We also provide support for ongoing rehabilitation and care

To arrange a confidential chat with one of our specialist solicitors, simply fill out the form and one of our team will contact you - free of charge and with no obligation.

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