Personal Injury Trusts FAQs
We represent a large number of clients who use trusts to safeguard their pay and benefits. Even if we didn’t handle your compensation claim, one of our lawyers might be able to counsel you on the potential advantages of a trust. Read our Mythbusters Guide to Personal Injury Trusts for more info.
Written by
Hatch Brenner Solicitors
Understanding Personal Injury Trusts
Myth#1
If I spend my compensation sensibly, I don’t need a Personal Injury Trust
A Personal Injury Trust offers additional security and invests your compensation to provide you with an income and capital growth (where value increases over the years). A Trust is like a bank account where your compensation is paid. Trustees – the people managing the Trust – follow strict legal and investment rules on how they look after it. They help decide how and when to pay compensation to enhance your quality of life; and sort out tax affairs.
Myth#2
If I get a large compensation pay-out, I’ll stop receiving state benefits
Benefits protection is a common reason for setting up a Trust, as it protects your entitlement to claim benefits if you cannot work following your injury. Even if you don’t claim now, a Trust may protect your ability to claim benefits in the future (if this looks likely). As if your savings are too high when you need to start claiming, you may not be entitled.
Myth#3
I can wait and decide to set a Trustup later
Yes, but you only have 12 months to decide whether to protect your compensation with a Personal Injury Trust. This 12 months starts the day you receive any pay out, even if just an interim payment.
Myth#4
I can be a trustee for my own Trust
No, but we recommend two trustees are family members or friends. A trustee doesn’t have to be a professional, but they do offer knowledge, experience and impartiality. You can opt to appoint two Hatch Brenner Partners as Trustees.
Myth#5
Setting up a Personal Injury Trust is expensive
No. Our charges to set up the Trust are just £500 plus VAT, though we charge more if acting as Trustees. We can help with the Trust’s yearly management – such as filing income tax returns, reviewing investments and giving further advice. Costs depend upon the type of Trust you need, which depends upon the benefits you claim. An initial telephone discussion about your circumstances is free of charge.
If you’re wondering how much do solicitors charge for personal injury claims, it’s important to note that Hatch Brenner offers transparent and competitive pricing for services such as setting up a Personal Injury Trust. For just £500 plus VAT, we can establish your Trust to safeguard your compensation and protect your entitlement to benefits. With our expertise, you can ensure your funds are managed effectively to enhance your quality of life while keeping costs manageable.
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This article is for general information only and does not constitute legal advice. The law may have changed since publication. Please contact us for advice on your own circumstances.
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