Personal Injury (PI) Trusts are intended to ensure that if you have been injured as a result of negligence or have suffered a personal injury and following a claim have been awarded compensation, that you are treated fairly.
In short, a Personal Injury Trust is designed to ensure that people who receive compensation do not lose their entitlement to means tested benefits as a result of receiving the payment. The compensation is for their injuries and to help them with – amongst other things – care fees, aids and appliances and lost earnings.
Without a PI Trust, receiving a financial award may affect your current or future entitlement to welfare benefits or assistance with care home fees.
At Price Slater Gawne, our team of specialist solicitors can assist you with all aspects of setting up a Personal Injury Trust and answer any questions you may have regarding how to manage and run the trust in the future.
To assist with questions you may have regarding Personal Injury Trusts, please click on the questions below:
What does setting up a Personal Injury Trust involve?
In practical terms, setting up a Trust involves paying your compensation directly into a bank account in the name of a trust rather than into an account in your name.
It involves appointing a minimum of 2 trustees who will manage the trust; this could be you and your spouse, you and a family member or close friend. – This person will be managing your trust with you, so therefore must be someone you trust absolutely.
What are the benefits of setting up a Personal Injury Trust?
The main advantage of a Personal Injury Trust is that you maintain your eligibility for means tested benefits, as when operated correctly, the trust will ensure that you do not have more than the eligibility limit (which for many benefits is around £6,000 household capital) in your own name.
Whilst eligibility for means tested benefits may not be an issue for you now, it may be sensible to place your damages into a trust, in case you undergo a change in circumstances in the future, such as ill health, which may mean that welfare benefits are necessary or to maintain future eligibility for care home fees.
How much do you charge to set up a Personal Injury Trust?
At Price Slater Gawne, we charge a one-off fixed fee for setting up a Personal Injury Trust of £720 including VAT.
What information does my Solicitor need to set up a Personal Injury Trust?
In order for your Solicitor to set up a Personal Injury Trust for you, you will need to provide:
- The names and addresses of your Trustees
- Your National Insurance Number
- Details of the benefits you are receiving and the address of the benefits agencies.
Price Slater Gawne also notify the Benefits Agency about the Personal Injury Trust on your behalf. In order to do this, we require proof of identification for your trustees.
I do not have anyone who could manage the trust with me. What can I do?
Price Slater Gawne can act as a Professional Trustee. Please contact the team to discuss this.