A personal injury trust is suitable if you have been awarded compensation as a result of a personal injury.
It is a way of keeping your lump sum compensation award separate from your other assets so that the regulations which would otherwise apply with regard to obtaining means-tested benefits are not applicable i.e. you get to keep your compensation award and your means-tested benefits.
The funds remain your own and you are able to use these funds as you please, although payments should not be made on a regular basis and you must never have a total of more than £6,000 in your own name at any one time.
Why do I need a personal injury trust?
If you have been awarded damages as a result of a successful personal injury claim and receive means-tested benefits, having a lump sum of compensation in excess of £6,000 may lead to you losing your entitlement to any means-tested state benefits you receive.
If your compensation is paid into a personal injury trust, you will be able to have access to these funds (subject to some minor restrictions) and still keep your entitlement to the means-tested benefits which assist you with your day to day expenses.