Compensation Protection Trusts
If you receive a compensation payment in respect of a personal injury and you are in receipt of means tested benefits, your benefits may stop because the lump sum you receive may take you over the means tested financial thresholds.
Having the payment paid into a Compensation Protection Trust can preserve your entitlement to means tested benefits.
By setting up a Compensation Protection Trust, you can ring fence your compensation money to ensure it is disregarded in any assessment for means tested benefits. You will be able to claim or continue to receive your means tested benefits without the money you have received from your personal injury settlement being taken into account. Your benefits will be able to cover your day to day expenses and the money in your trust can be used to buy extra items, pay off liabilities or even a holiday. Alternatively you can keep your compensation money safe for a rainy day.
Such a trust can also protect your compensation with regard to care fees. Should you ever require long term care in the future, the money in your compensation protection trust will be disregarded when you are assessed for liability to pay care fees.
Foot Anstey can provide advice on:
- Whether a Compensation Protection Trust is appropriate
- What type of Compensation Protection Trust is best for you
- Choice of Trustees
- Convincing the Benefits Agency that the Compensation Protection Trust should be disregarded as capital when assessing means tested benefits
- The tax implications of setting up and running the trust
- Trustees’ duties and the ongoing management of the trust
We can prepare all the trust documentation required so that everything is ready for when you receive your compensation payment.
For further information, please contact:
Jenny Slater, solicitor
t: 01752 675084
e: jenny.slater@footanstey.com
If you have, or think you may have, a personal injury or clinical negligence claim our specialist lawyers may be able to help. Click on the relevant link below for futher details:
Clinical Negligence
Personal Injury Claims and Advice
