If you are an adult who has received compensation following a personal injury or medical negligence claim, personal injury trusts may be the best way to look after it. Please contact us if you think we can help advise you.
Personal injury trusts
We support people to establish and manage personal injury trusts for compensation and insurance pay-outs.
Find out more about the cases we can help you with
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Understanding Personal Injury Trusts
A personal injury trust (PI trust) is a way of holding funds received due to injury and ensuring they are not a barrier to accessing the means-tested benefits you are entitled to.
Named trustees are appointed to oversee the fund and must agree to how the money is spent.
It is usual to have between two and four trustees. They can include anyone aged 18 or over who can make decisions for themselves (i.e. anyone who does not have mental capacity issues). This can include the person who was awarded the funds.
Professional trustees, such as solicitors, can be used. It is also possible to name close friends or relatives.
Benefits of a Personal Injury Trust
The benefits of creating a personal injury trust include:
- allowing a person and their partner and dependents to continue to claim means-tested state benefits they are entitled to now and in the future, which may include universal credit, council tax support and Jobseeker’s allowance
- providing a structure for managing funds, which may be particularly helpful for large damages awards that are intended to help the beneficiary throughout their lifetime
- providing additional security for funds awarded for someone who is or becomes vulnerable, to ensure they are only spent in the person’s best interests
- allowing opportunities to draw on the experience and knowledge of other trustees when it comes to spending decisions
- ensuring the burden of managing a compensation award does not all rest with one person
- allowing compensation to be spent in any way that is in the interest of the beneficiary and with a great amount of flexibility.
Personal Injury Trust Legal Process and Costs
Expert solicitors are best placed to manage the process of setting up a PI trust for you.
You will need to decide and nominate the trustees who will be responsible for the trust and how the money held in it is spent. Trustees may include you, a spouse, some other trusted person or a professional trustee such as a solicitor. You will need at least two trustees and it is usual to have up to four.
If a professional trustee is appointed to support the management of the trust, there will usually be an additional annual fee.
Trusted expertise
As expert solicitors focusing on serious injury, medical negligence, mental capacity and education, you can trust us to get the best results for you.
Dedicated team
We know how hard it is to deal with the harm you or a loved one has suffered. We’ll support you with empathy every step of the way.
No win, no fee
We can help you on a no win no fee basis, meaning you don’t need to worry about funding legal costs
Ongoing support
Our support doesn’t end after a claim. We can help you with your financial affairs after settlement and introduce you to charities and organisations that might be able to help you going forward.
Choosing a Personal Injury Trust Solicitor
As specialist personal injury, medical negligence and mental capacity solicitors we have extensive experience with personal injury trusts and can help with all aspects.
This includes:
- advice on whether a personal injury trust is a good option for you
- advice on who to appoint as trustees
- help with management of the trust and protecting entitlement to benefits
- preparation of trust documents
- help with adding or removing trustees
- help if disputes or difficulties arise in relation to a trust
- acting as professional trustees where required.
Our expert team will be happy to provide you with some further advice regarding personal injury trusts relevant to your own specific circumstances. Please give our friendly team a call for a warm, free initial consultation.
Client stories
November 5, 2019 |
1 minute read
Our partners
Expert legal help following a serious personal injury
If you’ve suffered a serious injury, speak to one of our specialist serious injury solicitors now for a free, confidential discussion of your claim.
Annabelle Vaughan
Partner
Alison McClure
Consultant
Paula Barnes
Consultant
Bethan Phillips
Managing Associate
Clare Tindale
Senior Associate
Hannah Loosemore
Senior Associate
Catherine Diamond
Senior Associate
Nikki Bedford
Associate
Shannen Raynor-Dewis
Associate
Vikki Heard
Associate
Sarah Phillips
Associate
Beth Dean
Associate
Personal injury Trusts FAQs
Is a personal injury trust ethical / a legal loophole?
Personal injury trusts are completely ethical and are not a legal loophole. They are an established way for people who have suffered an injury to look after compensation awards to ensure the money is there to support them as intended.
People who have suffered injuries may need to access means-tested benefits because of their injury or due to other reasons. They are entitled to do so without their compensation payments being used, which could mean the money is not then available to be spent in the way it was intended.
What is a personal injury trust deed?
A trust deed sets out all the rules and obligations concerning a personal injury trust.
It must be prepared by a specialist solicitor and signed by the trustees.
If the person who is entitled to receive the personal injury award does not have the mental capacity to manage their affairs they cannot sign the necessary trust deed. Instead, they will require a deputy appointed by the Court of Protection to manage their affairs.
Are there any drawbacks / disadvantages of having a personal injury trust?
Some perceived drawbacks of a personal injury trust may include:
- there must be at least two trustees
- at least two trustees must provide consent for withdrawals from the trust
- a separate bank account is required to hold the trust funds
- there are some costs involved in setting the trust up
- ideally, compensation should be paid into a trust immediately on being awarded (and within one year if they are to be ignored for means-tested benefits).
Can I manage my own personal injury trust?
There need to be a minimum of two trustees for a personal injury trust. You can be one of them.