For anyone who has received a significant compensation award as a result of a personal injury or are likely to benefit from such an award, creating a trust to receive the award is a crucial financial tool.
These trusts are often established to manage compensation lump sums or settlements, ensuring that the money is used for its intended purpose — the injured party's long-term care, rehabilitation, or future financial security. They are particularly beneficial for individuals who are unable to manage their finances or who are receiving compensation as part of a settlement that might impact government benefits eligibility.
The creation of a trust for personal injury compensation offers several key benefits:
There are different types of personal injury trusts. Each type has different implications, such as how much discretion the trustees have and how funds are distributed.
It is also important to set up the trust as soon as possible after the settlement is awarded, as delays in establishing the trust could affect the injured party's eligibility for government benefits or result in mismanagement of the funds.
Establishing such a trust requires careful planning, professional advice, and a commitment to responsible financial management, making it a powerful tool for those seeking to secure their financial future after an injury or accident.
Planning is essential when it comes to safeguarding your compensation award, and we’re here to guide you through every step. Susannah Emson, a Partner in our Private Client team, specialises in creating and managing personal injury trusts tailored to your unique circumstances.
Whether you’re looking to protect your assets, maintain eligibility for government benefits, or ensure your long-term financial security, our expert advice will help you make informed decisions. Contact us today to arrange an appointment.