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.
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:
Without a Personal Injury Trust, compensation payments may be counted as personal savings, which could reduce or remove access to benefits such as:
By placing the compensation into a Personal Injury Trust, it is generally disregarded when assessing means-tested benefits, allowing you to maintain your entitlement.
A Personal Injury Trust offers several important benefits for individuals who have received compensation.
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.
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.
Trustees help manage the funds responsibly, ensuring that spending decisions support the injured person’s wellbeing and long-term needs.
Knowing that your compensation is protected can provide reassurance for both the injured person and their family.
A Personal Injury Trust involves placing compensation funds into a dedicated trust account managed by trustees.
The typical process works as follows:
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.
A Personal Injury Trust typically requires at least two trustees, although you may appoint more if needed.
Trustees may include:
The injured person can usually act as one of the trustees, alongside another trusted individual.
Trustees are responsible for:
Choosing reliable trustees is an important part of ensuring the trust operates effectively.
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.
At MWQ Estate Planning, we understand that dealing with injury compensation and financial planning can feel overwhelming.
Our services include:
As members of the Society of Will Writers, we follow strict professional standards and provide reliable estate planning services across England and Wales.
Clients choose MWQ Estate Planning because we combine professional expertise with a personal approach.
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Our goal is simple: to help you make informed decisions and protect your financial future.
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.
Our skilled team is well-versed in Estate Planning, especially regarding property protection trusts.
We understand that every situation is unique so we aim to provide tailored solutions to meet your specific needs.
Our services are competitively priced, and we pride ourselves on clear and straightforward communication.
Property Protection Trusts are a powerful tool in Estate Planning, providing security for your most valuable asset – your home. With MWQ Estate Planning, you can rest assured that your property will be protected and preserved for your loved ones.
Contact us today for a no-obligation consultation to explore how a Protective Property Trust can benefit your estate plan.
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