A personal injury trust is a trust which is set up either by the injured party or their family to receive a compensation payment. By setting up a personal injury trust, the compensation is held separately from the injured party's assets meaning that it is protected from assessment for means-tested beneficiaries. It also means that the injured person will benefit from the guidance and direction of their trustees who will ensure that the compensation payment is protected for their long-term benefit.
It is important to seek professional advice at an early stage if you think you or a member of your family might benefit from having a personal injury trust in place. A personal injury trust lawyer can guide you through the options for holding and managing your award to ensure that it meets individual, family and financial objectives.
What advice can a personal injury trust lawyer provide me with?
A personal injury trust lawyer can assist you from the very beginning of the trust journey. They will provide advise on the setting up of the trust, the ongoing management and the eventual winding up of the trust on the death of the injured person.
1. The right type of trust deed
It is not the type of trust but the source of funding in the form of compensation for personal injury that makes a personal injury trust special. This means that you have a lot of choice regarding what type of trust structure to use to create your personal injury trust. The most appropriate form of trust will depend on your individual circumstances and objectives.
A personal injury trust lawyer will provide bespoke advice on the right type of trust depending on your personal position. There are various forms of trusts which can be used to hold compensation funds: liferent trusts, bare trusts, discretionary trusts and disabled person's trusts.
It is important to ensure that the correct trust is set up to best meet your individual objectives.
2. The timescales for setting up your trust
It is never too late to set up a personal injury trust. However, ideally, a personal injury trust should be set up prior to receiving your compensation to ensure that any means-tested benefits received by you are not affected. The award will be disregarded for the first 52 weeks following receipt of the first interim payment. If you have received an interim payment more than a year before the final award is paid, you will have to ensure that the trust is created before receipt of the settlement to ensure that your means tested benefits are not affected. Your personal injury trust lawyer will be able to guide you through the process.
3. The appointment of trustees
Your personal injury trust lawyer is also there to explain the roles and responsibilities of your trustees. You should appoint more than one trustee. You may wish to appoint yourself to act alongside others. Your personal injury trust lawyer will be able to discuss the various options with you.
It is also open to you to appoint a professional trustee which can be useful, particularly if a large award has been granted to ensure that the trustees meet all their ongoing obligations and legal requirements. Your personal injury trust lawyer will explain the benefits of appointing a professional trustee.
4. On the day-to-day administration of your trust fund
Once your trust has been set up, your personal injury trust lawyer is your first point of contact for assisting with the day-to-day administration of the trust fund. The personal injury trust lawyer is there to advise the trustees on the exercise of their role and to ensure that they meet their responsibilities to manage the fund for your benefit.
Our team of personal injury trust experts benefits from the support of other colleagues across the firm. We work regularly with specialist colleagues across the firm to ensure that the trustees receive a full service tailored to their needs and your individual circumstances so that you get the most from your personal injury trust.
We understand that the process of creating and managing a personal injury trust can be overwhelming. Our personal injury trust lawyers can help you navigate challenges and make important decisions to ensure that the right structures and protections are in place. If you think that you or your client would benefit from a discussion about personal injury trusts, please get in touch.
Contributor
Solicitor
