Have you received a personal injury award or compensation payment?
A settlement following a personal injury, medical negligence or similar claim may mean that an injured person suddenly receives a substantial amount of money. The sum awarded is usually calculated on the assumption of potential income lost plus any additional costs that the person will have to meet as a result of their injury or disability. Such costs might include rehabilitation, travel, care and adaptations to the home. The injured person will still have their daily living costs to meet, and might well need their normal state benefits to help them get by. They will also have to make sure that they use their award payment to provide for their needs, however long-term those needs might be. In these circumstances, a ‘personal injury trust’ (or ‘PI trust’) can be invaluable.
What is a PI trust?
A PI trust is a legally binding arrangement in which named trustees hold and manage a compensation award for the benefit of another person. For example, parents or guardians may act as trustees for a child awarded compensation for injuries arising from medical negligence at birth.
What are the advantages of a PI trust?
A PI trust can play a major role in protecting an injured person’s assets. For example, it will:
- place the compensation award outside any means test calculations
- preserve the compensation for the injured person by reducing the risk of claims from unscrupulous others
- allow for optional help from professional and experienced trustees (or ‘deputies’) and administrators on matters such as tax returns, investments and benefit claims
- offer an alternative for children and young people under the age of 18 to compensation held by the high court (these arrangements are sometimes known as CPR 21.11 trusts, infant trusts or special needs trusts)
Would a PI trust be right for me?
If you or a loved oneare likely to receive substantial compensationforany kind of personal or criminal injury, a PI trust is a wise consideration. We recommend that you seek expert advice on the best route forward for you or your loved one as it could make all the difference to your lives, both now and for the future.
To talk to PI trust specialists who understand, just call Wrigleys on 0114 267 5588 or email us.