Personal Injury Trust

Benefits of a PI Trust

If you’ve been injured in a serious accident and have been awarded compensation, a PI Trust will protect the money, particularly from affecting your eligibility of certain benefits.

These include:

• Housing benefit

• Council tax benefit

• Residential care assessments

• Income-based jobseekers allowance

• Income-based employment allowance

• Child tax credits

• Working tax credits

• Pension credits

• Income support

These benefits are means-tested, which results in your eligibility being affected by your income and capital. Receiving a large sum of money into your normal bank account would be your benefits would be reduced or halted until you’d spent a certain amount of your balance. A PI Trust separates your compensation from your bank account, meaning your eligibility is not hindered.

Timing

There’s a ‘one-year-disregard’, which means the compensation payment won’t be taken into account for means-tested benefits for the first year. You have one year upon receiving your compensation to set up a PI trust to ensure it does not affect your eligibility for benefits.

Trustees

A legal trust will need at least two trustees – you can be one of them. Trustees should be people who you trust to have your best interest’s at heart, as they will be looking after your affairs and personal needs.

If the recipient of a PI claim is a minor, their parent or guardian will be responsible for appointing trustees.

How does it work?

If you’ve been compensated for a personal injury claim or medical negligence claim, you can set up your own trust.

Speak with one of our expert solicitors today to find out the most efficient way to proceed with your request.