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 threshold. 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.
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 specialist advice to ensure your trust is set up to meet your individual needs.