Can you trust that your money will be safe?
Claimants who receive lump sum awards in relation to personal injury claims can face the prospect of losing out on state benefits that they are entitled to.
When compensation is received the claimant is deemed to have the funds at their disposal, even though much of it may have been earmarked to cover future expenses, such as care or equipment for the future. The funds are taking into consideration when calculating a claimant's entitlement to certain benefits, such as Income Support, Disabled Person's Tax credit or Employment and Support Allowance.
Any Claimant receiving a sum in excess of £10,000 in compensation should be advised to consider taking out a Personal Injury Trust. This trust protects the compensation and ensures that the claimant can still receive the benefits they were already entitled to.
Rhiannon Daniel, a personal injury solicitor at Trethowans says "Claimants should consider taking out a Personal Injury Trust to protect their finances and enable them to plan for the future, safeguarding the money for the purposes it was intended. It is important that Claimants obtain specialist advice on these matters at the conclusion of their claim".