Personal injury claims and personal injury trusts
People who receive large sums of compensation from personal injury claims will inevitably have to think about what they will do with the money.
Experts such as lawyers and accountants who work in areas that have an interest in personal injury claims tend to agree that one of the best things a person who receives upwards of £10,000 compensation can do is set up a personal injury trust (PIT).
There are several advantages to doing this. They are useful for the purposes of tax exemption, personal finance control and the basic protection of capital. However, they are perhaps most useful in allowing compensation recipients to protect their entitlement to means tested benefits.
Those in receipt of or hoping to receive any of the following means tested benefits should consider setting up a personal injury trust:
- Housing benefit
- Income support
- Working families tax credit
- Council tax benefit
- Disabled person's tax benefit
- Income based job seekers allowance
While lump sum compensation awards upwards of £6,000 can affect a person's entitlement to any of the above benefits, amounts of £10,000 or more are most likely to affect benefits. Those who receive £16,000 or more should almost certainly seek to set up a trust as sums of this size can lead to people losing benefits completely and only having a trust can mitigate against the possibility of local authorities vetoing a person's entitlement to benefits.
Although money held in a PIT will be guarded by trustees, recent changes in the laws relating to PITs mean that it is now possible for the compensation recepient to spend the money practically however they please.
YouClaim's expert no win, no fee lawyers
Here at YouClaim we have many years experience in helping people who have suffered injury in accidents receive the compensation they deserve.
We have expertise in practically every area of personal injury law. Whatever your needs, with specialists in workplace law, road accident law, holiday accident litigation and medical negligence cases, the lawyers on our panel are likely to be able to meet them.
All are governed by the high standards of the Solicitors Regulation Authority and all work on a, win or lose, cost-free basis. In addition, since we never take a cut from any client, in the event of your claim being a success you are guaranteed 100% compensation.
If you would like to discover more about why we have a near-unrivalled satisfaction rate among our clients, fill out an online claim form, have an echat or call us on 0800 10 757 95 to get your personal injury claim underway today.
