personal injury trusts

Most clients are more than happy to receive their compensation payment at conclusion of a successful clinical negligence claim and are then free to spend or invest the money for whatever purpose they choose.  However, for some clients this is not as an attractive option for various reasons.

If, for example, you are a client on means tested benefit and then receive a lump sum of compensation, this can often reduce your benefit or even stop you being entitled altogether.  A client who is on income support receiving full housing benefit and council tax benefit who suddenly finds that they are required to meet all these costs themselves, could find that their compensation payment is rapidly depleted and has little prospect of meeting their ongoing means in the longer term, even if part of the compensation was paid for ongoing care or equipment.

For clients in this situation it is often possible to pay compensation received through a clinical negligence claim into a personal injury trust.  As long as certain Inland Revenue requirements are adhered to, your entitlement to means tested benefit will be protected, meaning that your compensation can be used to cover your additional needs as intended.

This is a specialised area of clinical negligence work and you will require expert advice.  Trustees must be appointed and their duties explained.  The Clinical Negligence team at Blake Lapthorn have considerable experience in setting up personal injury trusts and we have the added benefit of being able to draw on the additional expertise of our Tax and Trust team.  If needed, we are also happy to act as trustees to administer the trust for your benefit.  We should be more than happy to discuss the benefit (or otherwise) of a personal injury trust in relation to your particular circumstances.

For further information please contact Alison McClure in the Clinical Negligence team on 023 8085 7345 or email alison.mcclure@bllaw.co.uk.