Compensation payout - On benefit due to injury so Solicitor advises Ring Fencing

james2005 · 11 November 2010 at 8:53AM

Hello my friend has received a medical negligence compensation payout and the solicitor has recommended they ring fence it by putting it into a trust, which means appointing trustees and therefore this will not affect there entitlement to benefits as the payout exceeds the savings amount.

Has anybody any experience with these, any disadvantages/advantages?

I suppose the disadvantage is the solicitor is holding my money, can my friend be ripped off.

What sort of fees are payable for administering it as I am sure its not free of charge?

Whats the best way forward...

Many thanks

dave030445 · 11 November 2010 at 9:38AM

Why not come off benefits and pay your own way in life with this payout. Why should the tax payer still pay for you when you have all this money.

james2005 · 11 November 2010 at 9:44AM

Firstly Its not that much, its over the threshold thats all. And its compensation for not earning for 2 years, it doesnt really compensate.

My friend is still unable to work, if she was she wouldnt be on benefits, She hates it! She have been volunteering at cancer research for 25 hours per week

If I want you silly comments I will ask you so jog on.

sod off and go and annoy someone else

james2005 · 11 November 2010 at 9:51AM

Its Benefits not benifits.

"And why should the tax paying still pay for you"

You dont make sense, what are you on the booze this hour of the morning Dave!

dave030445 wrote: »

why not come of benifits and pay your own way in life with this payout why should the tax paying still pay for you when you have all this money

AnxiousMum · 11 November 2010 at 10:05AM

Isn't the compensation payout paid so that a person can help provide for themselves whilst not working due to the problem they have incurred? It's not a rainy day savings account - it's money that is supposed to help make her days more bearable and manageable in a financial sense.

Your friend is able to volunteer 25 hours per week but not work?

Don't know anything about the 'ring fencing' or the costs involved........but her life would be alot more stress free I'm sure if she had use of the money for her day to day expenses rather than having to rely on handouts when she has received compensation.

james2005 · 11 November 2010 at 10:07AM

She is entitled to this! anyone actually know the answer or just more uncalled for comments?

Yes the charity suits her well as she just has to greet people, anyway due to her rural location there isnt any work only factory work which she is unable to do.

I hope that helps Anxious Mum!

Anyone actually know the answer?

skintbint_2 · 11 November 2010 at 10:19AM

benefit system asks for details of trust funds so am thinking they will take it ito account, as its still her money.They will also look at wilful disposal of capital, in other words she chose to do this so her benefit can still be paid, doesnt usually bode well for benefits as she has the means to support herself but has chosen not to use them.

kingfisherblue · 11 November 2010 at 10:20AM

Even if she is entitled to the compensation - and nobody has said otherwise - she may not be entitled to benefits any longer as she is over the threshold. Once she is below the threshold, she can reapply for benefits.

Also, being rude to posters who take the time to answer will not help. AnxiousMum makes very valid points. Dave may not be able to express himself as clearly as you would like, but there are many people who have difficulties with language. If you read his post slowly, you will understand what he is saying.

james2005 · 11 November 2010 at 10:32AM

I havent been rude to anxious mum, I answered her questions, Cant understand Dave!!

Its ok I have the answer from the claims forum, thanks ever so much for all your help.

kingfisherblue wrote: »

Even if she is entitled to the compensation - and nobody has said otherwise - she may not be entitled to benefits any longer as she is over the threshold. Once she is below the threshold, she can reapply for benefits.

Also, being rude to posters who take the time to answer will not help. AnxiousMum makes very valid points. Dave may not be able to express himself as clearly as you would like, but there are many people who have difficulties with language. If you read his post slowly, you will understand what he is saying.

DX2 · 11 November 2010 at 11:25AM

James google Personal Injury trusts

DX2 · 11 November 2010 at 11:27AM

Why Should I have a Personal Injury Trust?

If you are in receipt of means tested benefits then you should consider having Linder Myers Solicitors set up a PI Trust for you. The following are means tested benefits:

· Income Support
· Housing Benefit
· Council Tax Benefit
· Working Families Tax Credit
· Disabled Person’s Tax credit
· Income Based Jobseeker’s Allowance

As a general rule – if you have over £6,000 at your disposal you are at risk of having your benefits reduced. If you have over £16,000 then you are at risk of losing them entirely. If your compensation is paid directly to you then you will be classed as having this money at your disposal.

Therefore, if you are going to be receiving more than £10,000 in compensation you should give serious thought to having Linder Myers set up a PI Trust fund on your behalf. If you are expecting to receive less than £10,000 you should discuss it with us as it may still be cost effective to set up the trust.

Finally, if you think you may need to go into residential care at some point in the future, the setting up of a PI Trust will protect your compensation from being taken away by the Local Authority in order to pay for your care.
http://www.lindermyers.co.uk/article.asp?id=412

Compensation payout - On benefit due to injury so Solicitor advises Ring Fencing

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