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Personal Injury Trusts and why you should have one.

A Personal Injury Trust is created by an individual who has been awarded compensation, usually as a result of an injury or an accident, it can play a vital role in protecting a Claimant’s right to access means tested state benefits or even state funded care.

When to set up a Personal Injury Trust

As soon as your compensation has been awarded you should really begin to consider getting a Personal Injury Trust set up. It is always advisable to have the trust set up before the payment is made so that the award can be transferred directly into the trustee bank account and can be ring fenced from the outset.

Why set up a Personal Injury Trust?

If compensation is received, even if it is an interim payment, it will have an effect on any means tested benefits that you are in receipt of or that you may receive in the future. This may reduce or, in some cases, eliminate the whole of the compensation payment as you will have to utilise the funds for your day to day living expenses if your benefits are removed.

The main reason for setting up a Personal Injury Trust is to protect any current or future means tested benefits, the following are means tested benefits:-

  • Income Support
  • Housing Benefit
  • Council Tax Benefit
  • Working Families Tax Credit
  • Disabled persons Tax Credit
  • Job Seekers Allowance
  • (income based)
  • Employment and Support
  • Allowance (income based)
  • Pension Credit
  • Child Tax Credit


Currently, as a general rule if you have over £6,000.00 in savings you are at risk of having your benefits reduced. If you have over £16,000.00 in savings you could lose your benefits entirely.

The Personal Injury Trust may also serve to protect your assets/savings should you go into care in the future.

If you want to find out more about Personal Injury Trusts then why not call us today and speak to our private client department. Our Personal Injury Trust experts are able to answer your questions and provide you with the advice that is best suited to your situation. Call us today on 0151 735 1000, or why not ask a solicitor a legal question using our online ask the expert service?


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What others say about us

Extremely happy with the outcome of my Personal Injury Claim and can only thank Paul McCarthy and his team at EAD Solicitors and also Tim Trotman my barrister arranged by EAD, for all their work and efforts on my behalf. As such I would highly recommend EAD to anyone in need of their service. Once again thanks to all involved.
Brodie Martin, Merseyside
Excellent, very professional, approachable when I needed advice. I would just like to say thank you to your staff.
Robert Adams, West Midlands

  • Liverpool City Centre

    Prospect House, Columbus Quay
    Liverpool L3 4DB
    Phone: 0151 735 1000

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