Personal Injury Trust

This type of trust is typically used when the recipient of a compensation award is claiming or may in the future claim means-tested benefits and the size of the award would reduce their eligibility for benefits. This type of trust can also be set up on behalf of a person who has lost capacity to manage their own financial affairs.

Where a person suffers an injury and is awarded compensation, funds received should not be included in assessing eligibility for means-tested benefits provided that they are kept in a trust separate from any other funds. However, the assets in the trust (the ‘trust fund’) and income from it should not be used to pay for everyday living expenses such as food, clothing and regular household bills since these should be covered by the benefits awarded. 

The person who receives the compensation can place the compensation award into any of the main types of trust.

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