Personal Injury Trusts - What you Need to Know

Personal Injury Trusts

If you have suffered an injury and are due compensation, opening a Personal Injury Trust is a secure way to protect your means tested benefits and local authority funding claims. By ringfencing the damages, you can be safe in the knowledge that you can continue to make the claims you are entitled to.

Whether you are in England and Wales, our experienced team at BBH are here to make the process as simple and hassle-free as possible; we will handle the drafting of your Trust Deed for a bank account and make the necessary notifications to the DWP about your Trust. Complete the enquiry form following the link below and a member of our team will be in contact to answer any questions that you may have.

 What is a Personal Injury Trust ?

A Personal Injury Trust (PIT) allows you to ringfence damages arising from a personal injury claim. This means that you can continue to make a means tested benefits claim at your current level without the fear of them being denied. Opening a PIT also provides the following protections:

Ringfencing the damages for local authority care funding
Ringfencing the damages for care home fees
To hold property
Adding that extra layer of security for your money thanks to the Trustees

If you are not currently on any means tested benefits, placing the damages into a Trust will future proof the money should your circumstances change as well as providing the benefits listed above.

How long do i have to open a pI trust ?

 

Whilst there are no deadlines to put your damages into a Trust, it is always best to ringfence the damages sooner rather than later. After the first payment from the defendant has been made, whether an interim or final damages, you have a period of 52 weeks where the money is disregarded for any ongoing means tested benefits claims. If you hold onto the damages after this period has elapsed, your means tested benefits can be affected until they are ringfenced in a PIT.

How do they work ?

Unlike regular banking accounts, the trust needs to be operated by a minimum of two Trustees. You can name yourself as a Trustee, meaning that you then only need one other individual to operate the account. As a result, all payments from the Trust are made via online banking or cheque where payments are raised by the Beneficiary (you) and authorised and signed by your Trustees