Investing Personal Injury Trust money

stefano

I have settled a personal injury claim, and as my earning potential is severely affected, I need to think about investing some of the money into some interest bearing saving accounts.
I spoke to the company that set up the PIT account, and apparently, as long as the saving account is in the name of the trust, any money would be disregarded for any future means-testing.
But finding banks that will allow account to be opened for anything other than an individual, is a total minefield.
I went to ask my bank, and they treated me as if I was dodging taxes or something, and really upset me.
Does anyone know of any institution that will allow saving accounts to be opened for a trust?

jimjames

If you are putting it into savings then that isn't investing.

However if it is money for long term support then investing may well be a good idea for at least part of the money so that it keeps pace with inflation.

Depending on the amounts it may be worth speaking to an IFA if you aren't confident making your own investment choices.

stefano

jimjames wrote: »

If you are putting it into savings then that isn't investing.

However if it is money for long term support then investing may well be a good idea for at least part of the money so that it keeps pace with inflation.

Depending on the amounts it may be worth speaking to an IFA if you aren't confident making your own investment choices.

Putting it into savings will at least protect it against inflation. Some interest rates can be up to 2.5%

xylophone

http://www.nsandi.com/contact-us-helpful-information-faqs-can-i-invest-trust

http://www.bathbuildingsociety.co.uk/bath-building-society-guide-to-trust-accounts/

You can try other building societies - my recollection is that (for example) Yorkshire BS allows certain accounts to be held in trust.

A family trust has an account with Barclays Bank- I should imagine that any of the big banks provide such an account?

http://www.markthompsonlaw.com/best-bank-or-building-society-account-for-personal-injury-trust/personal-injury-trust-to-protect-personal-injury-compensation/ might be worth a read.

jimjames

stefano wrote: »

Putting it into savings will at least protect it against inflation. Some interest rates can be up to 2.5%

Yes, up to 2.5%. INflation (RPI) is currently still 2.6% so you will still be losing albeit slowly if you manage to get 2.5% on the savings.

4% income from investments would give more of a cushion though.

kidmugsy

It's notoriously hard to find providers who are happy to take trust accounts. Even law firms who specialise in this area, and who therefore have a lot of business to direct to a provider, complain.

My memory says that Beverley Building Society is, or was, such a provider.

Linton

If its a serious amount of money, say £75K+, needed to support you for many years I would strongly suggest you get professional advice. Just putting it in a bank account would mean that you lose out significantly.

stefano

Well, the settlement was enough to pay off my mortgage and leave me with around £90k. I understand it would be prudent to invest 50%, and have the rest available.
Another possibility would be to invest in a rental property, allowing the rent to be paid back in the trust.
The issue with professional advice, is that they now charge you significantly, and with returns very poor, one may struggle to make a profit.

kidmugsy

stefano wrote: »

that they now charge you significantly

They always did; it was just that it was invisible to you.