What are these?
If you have just won a personal injury award and you are on benefits due to disability and incapacity for work the monies you received may impact on these benefits. There are various levels of benefit payable, however, under the Income Support (General) Regulations 1987 if you have capital of more than £6,000 you will not be eligible to claim the maximum means tested benefits.
If your capital exceeds £16,000 you cannot claim means tested benefits at all. If you, therefore, receive more than £3,000 in damages, this would mean your eligibility to Income Support would either be reduced or removed altogether. Such an outcome could mean that an award in damages is eaten up in living costs.
Can we avoid the problem?
Before the damages are paid, you can set up what is called a Trust. If the Trust is correctly worded, you can have your award and your benefits too.
You will need to appoint Trustees, one of whom can be yourself.
There are various different types of Trusts involved and it is crucial that you get proper legal advice which would be most suitable for your circumstances. At the same time you need to get independent financial advice as regards to the investment of the moneys through the Trust.
How to set up the Trust.
It is advisable to have the Trust Deed in place before any settlement is made. Clarkson Wright & Jakes have a dedicated team who specialise in this area and can advise you as to the most suitable Trust for your personal circumstances and the costs involved in setting it up.
For more information please contact our Estates and Administration Department on 01689 887887.
Personal Injury Trusts
What are these?