We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
benefits and adding compensation to existing PI trust
Ms_Wheels
Posts: 40 Forumite
Hello,
I am wondering if anyone has a link to official policies or regulations regarding benefits and adding compensation (from a separate personal injury claim) to an existing personal injury trust? And whether the additional compensation needs to be paid into the trust by the solicitor or whether the claimant can receive the settlement as a cheque and them pay this into the PI trust?
The existing personal injury trust was set up via a solicitor who paid the compensation direct into the trust. I cannot access the money without the two trustees and for benefit purposes the compensation is disregarded.
Unfortunately, a couple years ago I suffered further personal injury. The claim was settled earlier this month. The solicitor did not discuss method of payment and the first I knew the case was settled was when a cheque arrived in the post.
A google search confirms additional personal injury can be placed in an existing PI trust. My concern is whether this is still OK from a benefit's perspective if I pay the cheque into the trust myself, rather than the solicitor paying it directly. I am assuming as I have the cheque then, for benefits purposes, I have access to the money. Whereas, with the previous compensation I technically have never had direct access.
I would be most grateful if someone can assist me,
Ms Wheels
I am wondering if anyone has a link to official policies or regulations regarding benefits and adding compensation (from a separate personal injury claim) to an existing personal injury trust? And whether the additional compensation needs to be paid into the trust by the solicitor or whether the claimant can receive the settlement as a cheque and them pay this into the PI trust?
The existing personal injury trust was set up via a solicitor who paid the compensation direct into the trust. I cannot access the money without the two trustees and for benefit purposes the compensation is disregarded.
Unfortunately, a couple years ago I suffered further personal injury. The claim was settled earlier this month. The solicitor did not discuss method of payment and the first I knew the case was settled was when a cheque arrived in the post.
A google search confirms additional personal injury can be placed in an existing PI trust. My concern is whether this is still OK from a benefit's perspective if I pay the cheque into the trust myself, rather than the solicitor paying it directly. I am assuming as I have the cheque then, for benefits purposes, I have access to the money. Whereas, with the previous compensation I technically have never had direct access.
I would be most grateful if someone can assist me,
Ms Wheels
0
Comments
-
I am sure that someone will post the relevant legislation later but for most benefits personal injury compensation is disregarded for 52 weeks.
This appears to be in line with websites that say you can put the payment into a trust up to one year after you have received it.
For people to give you the correct regulations it would be helpful to know which benefits in particular you need to know about.
Apologies, can't do links at the moment.0 -
How much are we talking about?0
-
Thank you for your responses.
pmlindyloo,thanks for confirming the 52 week disregard.
specialboy, the amount from the second compensation claim is £1200 ..... this will not take me over (or near) the £6000 saving limit for benefits, however I thought if I can add it to the PI trust it will be ring-fenced for future use on disability related costs. For example, when my drive from WAV is renewed using the Motability scheme as the advanced payments are high due to the level of conversion and adaptation I need.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards