compensation trust fund accounts

denise070

Hi there

I am currently in receipt of benefits for ill health. I am soon going to be receiving a fairly large sum of money from a compensation claim. I have been advised my solicestor to place my compensation money in a compensation trust fund to protect my benefits payments. My solicestor is setting up the legal paperwork for this, but has left me to open an account.
My question is which banks supply these accounts and which ones are better. I would prefer one where i can access my money as and when i need it as i need to pay off a lot of bills along with some home diy projects. I also have a problem as i do not have a good credit rating.

jonesMUFCforever

As far as I understand you need only open a basic account for receipt of income from the trust.
(Please correct me if I am wrong)
The solicitor will hang on to the fund to put into a trust fund?

You don't say how the fund is to be invested - if this has not been sorted consult an IFA.

emweaver

I thought any savings you have regardless of where they are from including compensation would affect your benefits ? You will have to declare them even if they are in a trust fund and depending on how much you receive your benefits may stop.

Debt_Free_Chick

denise070 wrote: »

Hi there

I am currently in receipt of benefits for ill health. I am soon going to be receiving a fairly large sum of money from a compensation claim. I have been advised my solicestor to place my compensation money in a compensation trust fund to protect my benefits payments. My solicestor is setting up the legal paperwork for this, but has left me to open an account.

I'm not sure that this is right. If a trust is being set up then I would have expected the trustees to open the account. I'd check again with the solicitor.

xylophone

http://www.lindermyers.co.uk/personal-injury-trusts---some-faqs_754.html
might be worth a read.

Debt_Free_Chick

xylophone wrote: »

http://www.lindermyers.co.uk/personal-injury-trusts---some-faqs_754.html
might be worth a read.

That's helpful. It includes this ....

"You then need to open up a bank or building society account in the names of the trustees. Ideally the account should be in the name of ‘The Trustees of the (your name) Personal Injury Settlement’. However, provided that it is a joint account in the names of all of the trustees it should be fine."

Which I think the OP needs to take in to account.

denise070

Thanks for the replys, its actually lindermyers (the link xylophone posted) that is setting up the trust fund.
I have been advised it is a special account but most high street banks do them.
The benefit agency by law will have to be informed but because it goes into a trust the benefit and compensation is protected .

McKneff

Would you rather not have an enhanced life and use this compensation money to make things better for you rather than living on benefits.
I can never understand this way of thinking to be honest.