Personal injury trusts

stefano

Not sure this is the correct board.
I was the victim of a serious RTA 3 years ago, and we are getting close to some sort of settlement.
My solicitor has sent me details of Personal injury trusts, but I wanted to hear the MS community feedback.
I am now 44yo, and have been made redundant twice since my accident.
I was run over by a van after falling off a motorbike on a dual carriageway. I was nearly killed and suffered 10 major fractures in my lower limbs. My original job, and where all of my work experience is, is the hospitality industry, restaurants, and my injuries now prevent me from being able to carry out duties involved in such a job.
My life has changed dramatically, and now I find myself with little chance of employment. I know I am not old, but the job market will find ways of discriminating, especially given my mobility impairment.
I do not know how much the compensation is likely to be, nor if I will be able to find a job soon.
What do people think of Personal Injury trusts then?

antrobus

stefano wrote: »

...
What do people think of Personal Injury trusts then?

They're a means of protecting your compensation payment from being swallowed up DWP capital rules on means tested benefits. Or indeed, at a later date, by LA care home fees.

If you have a proper real life professional type person advising you to have one, then I'd be inclined to follow their advice.

stefano

Well, the solicitor pursuing the claim on my behalf has only sent me the leaflet for my information. I assume there will be costs involved in the running of the scheme, and I believe that the DWP will still need the details of any trusts.

antrobus

stefano wrote: »

Well, the solicitor pursuing the claim on my behalf has only sent me the leaflet for my information.

Perhaps they're just warming you up for the 'real thing'?

Anyway, it depends on how much you expect to get. From the sound of things, "nearly killed" and "10 major fractures" probably a fair chunk of cash even if it isn't on the scale of a lottery payout. So if you're on benefits at the moment the answer would be very likely to get one.

stefano wrote: »

... I assume there will be costs involved in the running of the scheme, and I believe that the DWP will still need the details of any trusts.

Well one bunch of solicitors (Linder Myers) say that they can set one up for £695 plus VAT, but seem to suggest that the ongoing cost is negligible where you and another family member act as trustees.

http://www.lindermyers.co.uk/personal-injury-trusts---some-faqs_754.html#b1q3

You still need to tell the DWP, but if the thing has been properly set up, that isn't an issue.

Finefoot

I suggest you set one up. Are you using a Personal Injury solicitor ?

stefano

Finefoot wrote: »

I suggest you set one up. Are you using a Personal Injury solicitor ?

Yes, I am using a solicitor for my personal injuries.
And I did not know I could be the trustee. Would that be legal?

stefano

Can my wife and I be the trustees?

Quentin

stefano wrote: »

Can my wife and I be the trustees?

Yes (assuming you are both old enough!) (ie over 18)

stefano

And why does the website state:
Without going into a complex legal argument we would advise the following:

• Do NOT transfer the interest payments alone into your normal bank account.
• If you need some spare cash try not to make regular payments to yourself. Avoid doing things like paying yourself a regular income (whether weekly, monthly etc). Do NOT, for example, transfer £500 on the 1st of every month from the trust account to your current account.
• If you must make payments from the trust account into your personal current account then make irregular payments such as £200 one week, £300 six weeks later and so forth. Ideally, however, you would only make payments directly out of the Trustee account to purchase specific items.

I have little or no chance of gaining employment, as my career has been in the hospitality/restaurant industry since I was 14, and at 44yo, I cannot see anyone employing me as a PA, secretary or any kind of desk job.

Quentin

That refers to the paying out of income (interest) from the trust fund, not the original compensation, which you can spend on anything you want.

You do need to discuss this with your solicitor so you understand it before making any decision. And ask them to explain again anything you don't follow.

stefano

Would I be wise to use some of the compensation to settle my mortgage, or should I not do that?