Personal Injury Trusts
Personal injury trusts are used to separate personal injury compensation payments from your personal finances.
If a compensation payment would affect your eligibility to receive benefits for example, you might be able to use a personal injury trust to keep both your compensation and your benefit payments.
Disclaimer: This guide outlines general topics you should be thinking about if you want to make a personal injury claim. But it is not legal advice. If you need legal advice, you should contact a specialist personal injury claim solicitor for guidance on your specific circumstances.
What Is A Personal Injury Trust?
A personal injury trust legally separates your compensation from your personal finances. The main advantage of a personal injury trust is that you can receive compensation without affecting your eligibility to claim means-tested benefits.
Normal people like us can use them too!
A personal injury trust fund allows you to keep both your compensation and your means-tested state benefits.
It is a legal deed that separates your compensation payment from your personal finances. It sounds complicated but it’s not. It just means that when you are being assessed for benefits, your compensation money will not be taken into account.
A personal injury trust document will:
- say how much compensation you have been paid
- set out the reasons why you have been paid the compensation
- detail the names of the trustees (these are the people who control the trust)
- hold your compensation money in a separate bank or building society account
If you claim means-tested benefits, you should seriously think about setting up a personal injury trust for your compensation.
And even if you don’t claim benefits right now, who knows what is going to happen in the future?
Setting up a personal injury trust now will give you peace of mind. If you fall on hard times, you can apply for benefits without worrying if your compensation will affect your entitlement.
As an added bonus, a personal injury trust fund also keeps things tidier when accounting for your taxes.
The above article is part of our guide on how to make a personal injury claim in Northern Ireland.
If you are thinking about making a personal injury claim, you should get in touch with a Northern Ireland personal injury solicitor who will help you assess the strength of your case.
If you have any questions, you are very welcome to get in touch.
All the best,
The Team @ Lightlaw
Every effort is made to keep this guide up to date. Although it is not to be regarded as legal advice, we strive to make sure the information is helpful, accurate and practical. If you are a Northern Ireland personal injury solicitor and have spotted an inaccuracy, you can submit a suggested change.