Is a personal injury trust worth it?

In summary, whilst setting up a personal injury trust may seem a little scary at the start, it is a quick, easy, and efficient way to ensure that your compensation is protected and that the compensated person is able to continue to receive support from the state for their lifetime.

Can I set up a personal injury trust myself?

In most cases, the decision to set up a personal injury trust is one for the person to make for themselves, with advice from a specialist solicitor. However, if a person is unable to make their own decisions, it will be necessary to get approval to set up a trust for them.

What type of trust is a personal injury trust?

A Bare Trust is the simplest type. Here, the Trust is managed by the Trustees according to the terms of the Trust, and on the injured person’s death the Trust will be wound up and the funds will form a part of their estate.

Can you withdraw money from a personal injury trust?

Personal Injury Trust Income It is possible for income to be generated by trust investments, but for this not to affect your state benefits, provided withdrawals are not taken from the trust.

Do you pay tax on a personal injury trust?

Taxation of Discretionary Personal Injury Trust Any income tax will be initially assessed on the trustees at the trustee rate of tax. However, as this is a “settlor interested” trust, the income will also be assessed on the settlor who will get credit for the tax paid to set against his/her own income tax liability.

Does a trust fund affect benefits UK?

The trust is a formal legal arrangement whereby trustees hold money on behalf of the beneficiaries, in accordance with the terms of your will. The money is protected and if the right kind of trust is used, it will not affect any means-tested benefits.

How long do you have to set up a personal injury trust?

Therefore you have 52 weeks to set up a PI compensation trust to ensure that any personal injury compensation you receive won’t impact your ability to receive benefits moving forwards.

What happens to a Personal Injury Trust on death?

When money or assets are taken out of a Personal Injury Trust, they lose the protections that the trust provides. For example, with a bare trust, the death of the sole beneficiary means that the trust ceases and the trust property goes to form part of the beneficiary’s the estate.

Can I claim benefits if I have a trust fund?

How to set up a personal injury trust?

One solution is to set up a Personal Injury Trust, a trust fund that looks after the money on behalf of the claimant. The major plus of a trust is that it protects both current and future entitlement to certain state benefits, Local Authority assistance and/or other sources of state-assisted help.

What are the benefits of a personal injury trust?

The major plus of a trust is that it protects both current and future entitlement to certain state benefits, Local Authority assistance and/or other sources of state-assisted help. The wrong advice, or failure to invest in a Personal Injury Trust could result in benefits being affected once damages are awarded.

Can a pi Trust be used for personal injury?

Setting up a PI Trust – also known as a compensation protection trust or special needs trust – means that personal injury compensation can be paid into a trust bank account and won’t be taken into account when means-tested benefits are being assessed.

Who are the experts in personal injury trusts?

Nestor is an industry-leading expert in independent financial advice and the long-term management of damages awards. We offer expert help and advice in creating and managing Personal Injury Trusts.

Is a personal injury trust worth it? In summary, whilst setting up a personal injury trust may seem a little scary at the start, it is a quick, easy, and efficient way to ensure that your compensation is protected and that the compensated person is able to continue to receive support from the state for…