Personal Injury Trust

Any trust that receives funds as a result of a personal injury and that is set up by the injured person can be classed as a ‘Personal Injury Trust’.

As there is no one type of trust that is a Personal Injury Trust, the first step is to meet with a Solicitor in order to discuss the different types of trust that can be used and which type would be most suitable for your circumstances.

You would then need to select your trustees (see ‘Who can be a trustee of a Personal Injury Trust?’ below). We would normally recommend that at least three trustees are selected to ensure that a majority decision can always be reached.

In order to formally set up the trust, your Solicitor would prepare a Trust Deed and it would signed by you and your trustees. Your compensation award would then be transferred to the trust for your trustees to administer for your benefit.

A Personal Injury Trust might be suitable for anyone who has received compensation as a result of:

• Medical negligence causing injury
• Criminal injuries
• Accidental injuries
• Disease or injury caused as a result of disease

If you think you have grounds for a personal injury claim, our expert Personal Injury Solicitors can advise you on your situation and help you through the whole claims process.

You can put the entire amount of compensation that you receive as a result of a personal injury into a Personal Injury Trust.

Anyone who is over the age of 16 and mentally capable can be a trustee of a Personal Injury Trust. It is possible for the injured person setting up the trust to also be a trustee.

No. One of the main advantages of putting compensation received as a result of a personal injury into a Personal Injury Trust is that the assets held within the trust fund will be disregarded for the purposes of assessing your ability to claim means-tested benefits.

However, your trustees will have to be careful when making payments from the trust fund to you that they do not exceed the maximum limits permitted when claiming means-tested benefits.

Yes. Once the trust has been established, the trustees must administer the trust funds for your benefit. They are responsible for deciding when to make payments to you. They are also responsible for paying any tax and ongoing expenses for the trust. The level of administration varies depending on the type of trust chosen.

Trustees have a number of duties when administering the trust, such as duties to meet regularly, to keep an account of their actions and to act in your best interests.

Depending on the type of trust used, your Personal Injury Trust will either end on your death or it can continue on after your death in order to benefit your family. However, if appropriate, the trust can be brought to an end before this.