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Personal injury trusts

If you have been awarded personal injury compensation your entitlement to  means-tested benefits can be reduced unless it is paid into a personal injury trust.

A personal injury trust is a way in which entitlement to means tested benefits (both present and future) can be protected, even if a person is in receipt of a significant compensation award for personal injury.

As a general rule if you have over £6,000 at your disposal you are at risk of having your benefits reduced. If you have over £16,000 then you are at risk of losing them entirely.*

If your compensation for personal injury is paid directly to you into your current account (or any other account that is not connected to a personal injury trust) then you will be classed as having this money at your disposal.

Means tested benefits

By putting your money into a personal injury trust you avoid having it means tested. If the compensation is not held in a personal injury trust then you will have to use it to pay for your care fees. Some other examples of means tested benefits which are protected by the use of a personal injury trust include Income Support, Council Tax and Housing Benefit.

There is a compelling argument that a personal injury trust is needed by anyone who receives a compensation award over £16,000, regardless of whether or not they claim means tested benefits at present, as no-one knows what their future holds.

You can ensure that, should you need care, your award remains available to you if needed – for example to buy luxuries such as a television, to pay for a holiday or even to top up the cost of your care so can you can afford a ‘nicer’ care home.

Why choose Linder Myers?

A niche area of law we have a dedicated team of lawyers specialising in drafting personal injury trusts, helping to make sure that your finances are secure and protected at all times. We can help set up the trust and provide all the necessary advice and support you need. We are also able to act as trustees where required. By law, only a solicitor is permitted to draft a trust, so if you’d like to discuss your circumstances in more depth, please contact us today.

Contact us Read our personal injury trusts FAQs Set up a personal injury trust

*Correct at the time of writing

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