Legal News | 11.03.21
When life gives you lemons make lemonade (or a personal injury trust)
Life does not always pan out quite as we might hope and sometimes life can really deal you a blow. If you are unlucky enough to be left in a position where you are awarded a payment as a result of an injury (or negotiated settlement or some insurance payments) then it’s worth knowing about personal injury trusts.
A personal injury trust allows you to transfer a compensation payment into a trust and ring-fence that money so it’s not taken into account for means-tested benefits. While life is going along well, means-tested benefits might not even be on your radar but if you’re unlucky enough to suffer a personal injury then you want to be sure your interests are protected and you can claim assistance for all the help you need, whether straightaway or in the future.
The ring-fencing not only relates to means-tested benefits but can also extend to present or future care costs.
Not only that, by setting up a trust you can appoint trustees to help you manage the fund at a time when you probably want all the support and help you can get.
We can help advise you on the type of trust that might suit you, and the tax implications of your choice. If you go for a basic (bare) trust then you will also need an up to date Will to state what happens with the trust fund on your death. Again, Wansbroughs can help you with this; please contact us at firstname.lastname@example.org for further information.