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Head of Practice Area - Serious Injuries
Personal Injury Trusts
Why do you need a Personal Injury Trust?
The receipt of money as a result of a claim may stop your means tested benefits if the value of your savings will then exceed certain limits set by the government.
The law permits these benefits to be preserved if the funds are placed in Trust. Provided that the Trust is carefully drafted, the money within the Trust can then be made available for you without having any long term, impact on your benefits.
Even if you do not currently receive benefits, you should consider what would happen if you become entitled later in life. If a tTrust is set up, you can retain the Trust Funds and also maximise the level of state funding and support you receive.
How do I set up a Trust?
Contact Brethertons and we will work with you in carefully creating a suitable Trust.
You will need to select and appoint Trustees who will look after the Trust Fund. They will also authorise any spending from the Trust. It is important that you can rely on the Trustees as you will be dependant on them agreeing to release funds to you. You can choose up to four Trustees who may be friends or relatives. Brethertons can also act as Trustees should you wish us to aid often a combination of family and professionals work best.
These are the people who could receive money from the Trust. In most cases the sole beneficiary will be the person who suffered the injury.
Once the trust document has been completed, then the money can be invested by the Trustees. The Trustees will need to have yearly meetings to ensure that the Trust is running correctly and to ensure that the Trust Fund is performing as well as possible.
It is important to take advice as soon as possible in order to ensure that your benefits can be protected and potentially to help you deal with the influence and pressure of third parties.
What happens to the money?
The money is intended to be used for your benefit and can be spent on anything you require. The Trustees must be sure not to pay you a regular income from the Trust as this could affect your benefits. It is important that the Trustees' take specialist advise from an Independent Financial Advisor who can provide more information on how to invet Trust Funds to provide long term financial security.
You might also like to read other notes we have made available via our website such as, interim payments, detailed assessment and File Closing.