Personal Injury Trusts: What Should You Know About Them?
If you have been critically wounded in an accident, you will face several problems. In addition to your injuries and the labor required to get your life back on track, pursuing legal action to seek compensation can provide its own set of challenges. One unanticipated stumbling block is the possibility of your claim being successful. A sudden and possibly considerable infusion of cash can have a variety of repercussions, especially when it comes to means-tested benefits. Personal Injury Trusts are one option for addressing some of these issues.
What Is A Personal Injury Trust?
A Personal Injury Foundation is a charity designed to safeguard payments made due to a personal injury claim. There are several financial advantages to using a Personal Injury Trust. It also gives you a mechanism to manage the compensation payments you get, which might be pretty significant.
The most significant advantages of a Personal Injury Trust are the means-tested benefits it provides. A lump sum settlement from a personal injury claim may diminish or eliminate your eligibility for means-tested assistance. In the long run, you may be worse off financially due to a sufficient compensation payment to cease your benefits but insufficient to eliminate the need for such benefits in the future.
Will Personal Injury Trusts Assist Other Members Of My Family?
Means-tested benefits may also take into account any assets owned by members of your family. As a result, it will not be considered towards any household capital assessment in the means-test.
If you want to establish a Personal Injury Fund, you must do it as quickly as you hear that you will be compensated. This is to ensure that any remuneration you get is not included in any means-testing.
It is the responsibility of the legal professionals representing you in your injury claim to inform you of the dangers that compensation may pose to any means-tested benefits. You should include complete information about your history and any advantages you or your family members get. If you want to set up a Personal Injury Trust, you should speak with an attorney specializing in trusts, such as Gibson Hill.