Personal Injury Trusts
Things for You to Think About
What is a Personal Injury Trust?
The trust is created by you when you sign a special document called a ‘trust deed’. It states who must look after your compensation upon your behalf. The people who look after it are your ‘trustees’. You can choose them. The trust deed also explains how the money is to be invested and otherwise looked after for your benefit.
Why should you bother?
If you receive compensation, even an interim payment, it will tend to cut your means-tested benefits. That is certainly after the 12 months ‘period of grace’ ends and sometimes sooner. The period of grace is based upon complex legal provisions and our advice is that you should not rely upon it. That is especially if like most people you want to retain some of your award for a ‘rainy day’.
Remember that your compensation may cost you more than you think if you do not put a trust in place. It may cut your present entitlements and also your ability to claim in the future. Not having entitlement to means-tested benefits can also stop you being able to obtain other valuable services such as free prescriptions and school dinners for children.
Even if you do not get means-tested benefits right now you might want to protect your compensation from the growing cost of long-term care. This is a big concern for many people. Why miss out when the rules allow you to retain your entitlements if you found a trust?
What can you do with the money in the Personal Injury Trust?
Your normal expenses of daily living are supposed to be met by means-tested benefits. That is things such as gas, water, electricity, food, mortgage interest, council tax, most rents and payments for any residential care. These should usually continue to be met by your benefits (so far as possible) because that will help you budget properly. But if there is a shortfall these bills can be met by the trust (e.g. if you get an unexpectedly large heating bill).
Other things which are not supposed to be met by benefits such as your phone bill, TV costs and the cost of extra care should be met from the trust. The trust can also pay for a place to live, a new car, petrol, a holiday and much more. It is really up to you. The money you do not need can be reinvested by the trustees for the longer term.
Who should you choose to be your trustees?
You need to pick a couple of trustees to look after the compensation you put into the trust and make decisions about payments from the trust.
Your choice of trustees is very important. Payments are subject to your consent. Trustees must take proper investment advice. You can have the power to get rid of and appoint new trustees if you want. The trust can be wound up if necessary although that may trigger loss of benefits.
At OHP we can advise you on a trust and prepare the Trust Deed for you. If you have any questions or need any advice please do not hesitate to contact us on our 24 hour Advice Line 0800 526368 or email firstname.lastname@example.org
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Mr Watson, Personal Injury Case
I have never had to deal with the solicitor for anything and for my first experience I am very glad to say that OH Parsons solicitors handled my case with utmost respect and professionalism. I would recommend OH Parsons to family and friends that need legal services. Thank you for all your help.
Ms Greca, Personal Injury Case
The service that you provided for me was very professional. I always felt at ease with you and easy to talk to you. I know if I ever need your services again I will not hesitate to contact OH Parsons family solicitor again.
Mrs P, Family Law Case
I would like to take this opportunity to thank OH Parsons for tremendous assistance throughout the legal claim. I was regularly informed about the proceedings of my case in a simple language. I am very happy with the service I was offered and would recommend it to others.
Mr Sehgal, Personal Injury Case
OH Parsons solicitors - Extremely helpful, honest, very professional, friendly and polite. Kept me informed and up to date with every development . Explained all the information thoroughly. Would definitely recommend and use them again. Thank you.
Mrs Power, Clinical Negligence Case
OH Parsons guidance and advise greatly appreciated. I have been well informed about my Personal Injury claim all the time. I would definitely recommend OH Parsons to my friends and relatives. Thanks.
Ms R. Nair, Personal Injury Case
I found OH Parsons very caring, yet professional in their approach to my case. Although I only had an accident report to support my claim, they took that and was able to prove that y employeers were negligible. I would recommend OH Parsons to anyone to represernt them. I am very happy with the support and service I received. Thank you to Nicholas especially, he was really ‘on the ball'.
Ms D Box, Personal Injury Claim
These last 3 years has been something that I would not want to go through again, we as a family nearly lost everything and each other. I and my family cannot thank Hannah and all the staff enough. A very professional company, with a very personal service to their clients. Thank you.
Mr A, Norfolk, Personal Injury Claim
Nazir had dealt with my case and was very very good, she dealt with the case very professionally, was nice and friendly on the phone, answered all my emails straight away, gave me good advice and I was very satisfied with the outcome, given the circumstances of my accident
Mr L, Personal Injury Claim
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Mr J Devaney, Personal Injury Claim
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