Personal Injury Trust
If you have received compensation following an accident or injury, protecting that money is essential. A Personal Injury Trust allows you to safeguard your compensation while ensuring it does not affect your eligibility for means-tested benefits.
At MWQ Estate Planning, we help individuals and families establish Personal Injury Trusts that protect compensation payments, provide financial security, and ensure funds are managed in the best interests of the injured person.
Our experienced advisors offer clear guidance, tailored solutions, and affordable pricing, helping you make the right decisions during what can often be a difficult time.
If you have received, or expect to receive, a compensation payment, a Personal Injury Trust may be one of the most important steps you take to protect your financial future.
Request a free consultation today to discuss your options.
What Is a Personal Injury Trust?
A Personal Injury Trust is a legal arrangement designed to hold compensation payments received as a result of an injury, accident, or medical negligence claim.
Instead of holding the compensation in your personal bank account, the funds are placed into a trust and managed by appointed trustees for your benefit.
The key purpose of a Personal Injury Trust is to ensure that your compensation:
- Does not affect your entitlement to means-tested benefits
- Is protected and managed responsibly
- Can be used to support your long-term care and financial needs
Without a Personal Injury Trust, compensation payments may be counted as personal savings, which could reduce or remove access to benefits such as:
- Universal Credit
- Income Support
- Housing Benefit
- Council Tax Support
- Pension Credit
By placing the compensation into a Personal Injury Trust, it is generally disregarded when assessing means-tested benefits, allowing you to maintain your entitlement.
Why Set Up A Personal Injury Trust?
A Personal Injury Trust offers several important benefits for individuals who have received compensation.
Protect Means-Tested Benefits
One of the main reasons people establish a Personal Injury Trust is to ensure their compensation does not impact their eligibility for benefits. Compensation kept in a standard bank account may be treated as savings and affect entitlement.
Safeguard Compensation
Compensation payments are often intended to cover long-term needs such as care, rehabilitation, or adapting your home. A trust ensures that these funds are protected and used appropriately.
Financial Oversight and Support
Trustees help manage the funds responsibly, ensuring that spending decisions support the injured person’s wellbeing and long-term needs.
Peace of Mind
Knowing that your compensation is protected can provide reassurance for both the injured person and their family.
How A Personal Injury Trust Works?
A Personal Injury Trust involves placing compensation funds into a dedicated trust account managed by trustees.
The typical process works as follows:
- Compensation is awarded following a personal injury claim.
- A Personal Injury Trust is established by legal professionals.
- Trustees are appointed to manage the funds.
- The compensation is transferred into a separate trust bank account.
- Funds are used to support the injured person when required.
The injured person remains the beneficiary of the trust, meaning the money is still used for their benefit, but it is managed in a way that protects benefit entitlement.
Who Should Be A Trustee?
A Personal Injury Trust typically requires at least two trustees, although you may appoint more if needed.
Trustees may include:
- Family members
- Close friends
- Professional advisors
The injured person can usually act as one of the trustees, alongside another trusted individual.
Trustees are responsible for:
- Managing the trust funds
- Making financial decisions in the beneficiary’s best interests
- Keeping clear records of trust activity
Choosing reliable trustees is an important part of ensuring the trust operates effectively.
When Should You Set Up A Personal Injury Trust?
Timing is important when establishing a Personal Injury Trust.
Generally, a trust should be created within 52 weeks of receiving compensation to ensure the funds can continue to be disregarded when benefits are assessed.
Even if you have already received compensation, it may still be possible to set up a trust within this timeframe.
If you are expecting a settlement, it is often advisable to arrange the trust before the compensation is paid, ensuring a smooth process.
What Is a Personal Injury Trust?
At MWQ Estate Planning, we understand that dealing with injury compensation and financial planning can feel overwhelming.
Our services include:
- Personal Injury Trust setup and documentation
- Guidance on trustee responsibilities
- Advice on protecting benefits and compensation
- Ongoing estate planning support
- Affordable and transparent pricing
As members of the Society of Will Writers, we follow strict professional standards and provide reliable estate planning services across England and Wales.
Why Choose MWQ Estate Planning
Clients choose MWQ Estate Planning because we combine professional expertise with a personal approach.
✔ Clear, straightforward advice
✔ Affordable alternatives to high-street solicitors
✔ National service across England and Wales
✔ Members of the Society of Will Writers
✔ £2 million professional indemnity insurance
✔ Thousands of satisfied clients and excellent reviews
Our goal is simple: to help you make informed decisions and protect your financial future.
Request A Free Consultation
Our friendly advisors are available to explain your options and guide you through the process.
Call us today on 0800 066 2930 or request a free, no-obligation consultation.