Personal Injury Trusts - can you set one up without a lawyer?

ticktack_2

From the DWP website, "PC10S - A detailed guide to Pension Credit for advisers and others (September 2011)", Capital Disregards:

"Lump-sum personal injury (including vaccine damage) payments

If your customer or their partner received a lump-sum payment, which is not held in a trust fund, because of a personal injury we will ignore an equal amount of capital. If the payment was used to set up a trust fund we will ignore all capital in the trust – which may be more or less than the original payment – and any income gained from it."

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/pc10s-guide-to-pension-credit/capital-disregards/#personalinjury

No need to set up a trust. :D:D

ticktack_2

And for Housing Benefit / Council Tax Benefit:

"RR2 - A guide to Housing Benefit and Council Tax Benefit", Working It Out, Income and Capital, Compensation Payments:

People aged 60 or over

Compensation Payments made as a result of personal injury are ignored whether or not placed in a trust. [HB(SPC) Sch 6.17, CTB(SPC) Sch 4.17]

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

FCA

How does that DWP advice square with the actual regulations?


HOUSING BENEFIT (PERSONS WHO HAVE ATTAINED THE QUALIFYING AGE FOR STATE PENSION CREDIT) REGULATIONS 2006
Schedule 6
17.—(1) An amount equal to the amount of any payment made in consequence of any personal injury to the claimant or, if the claimant has a partner, to the partner.
(2) Where the whole or part of the payment is administered–
(a) by the High Court or the County Court under Rule 21.11(1) of the Civil Procedure Rules 1998, or the Court of Protection, or on behalf of a person where the payment can only be disposed of by order or direction of any such court;
(b) in accordance with an order under Rule 36.14 of the Ordinary Cause Rules 1993(a) or under Rule 128 of those Rules; or
(c) in accordance with the terms of a trust established for the benefit of the claimant or his partner, the whole of the amount so administered.

ticktack_2

FCA wrote: »

How does that DWP advice square with the actual regulations?

My guess would be that there might have been amendments since 2006. I believe the rules are so complex that every change to one benefit precipitates a bunch of changes to other benefits, trying to keep everything aligned. The CAB might be able to help you track down relevant amendments, if that's what you want to know.

skintandscared_2

ticktack wrote: »

And for Housing Benefit / Council Tax Benefit:

"RR2 - A guide to Housing Benefit and Council Tax Benefit", Working It Out, Income and Capital, Compensation Payments:

People aged 60 or over

Compensation Payments made as a result of personal injury are ignored whether or not placed in a trust. [HB(SPC) Sch 6.17, CTB(SPC) Sch 4.17]

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

I'm confused. Are you now over 85 years old? If not, you were younger than 60 when you received the payment, or doesn't that matter?

ticktack_2

skintandscared wrote: »

I'm confused. Are you now over 85 years old? If not, you were younger than 60 when you received the payment, or doesn't that matter?

Unless/until I learn otherwise, I'm assuming that if the disregard only applied to awards received after the age of 60, it would say so.

skintandscared_2

ticktack wrote: »

Unless/until I learn otherwise, I'm assuming that if the disregard only applied to awards received after the age of 60, it would say so.

I read that it does, to be honest. Otherwise why put in the age restriction? Anyone of any age could receive an award and stash it away until they're over 60. It makes the restriction completely redundant otherwise! I read it that the legislation applies if you receive the award and are aged over 60 at that time of receipt.

ticktack_2

skintandscared wrote: »

I read that it does, to be honest. Otherwise why put in the age restriction? Anyone of any age could receive an award and stash it away until they're over 60. It makes the restriction completely redundant otherwise! I read it that the legislation applies if you receive the award and are aged over 60 at that time of receipt.

Anyone of any age can receive a PI award and stash it away until they're over 60, by putting it in a trust.

skintandscared_2

ticktack wrote: »

Anyone of any age can receive a PI award and stash it away until they're over 60, by putting it in a trust.

Yes they can, as long as they do it immediately!

FCA

I have looked at the Statutory Instruments that modify the 2006 Act and cannot find any supporting the RR2 comment - which specifically references paragraph 6.17 as above.