Personal injury trust / useing your money

scottorange

Hi I need to setup a personal injury trust very soon I understand most things about this but failing to understand the rules on how you can use your money and getting the cash out ? Can I make cash with draws over the counter as long as the other trusty co sighns the withdrawal slip ? Ive been told check book only for a trust account . So the rules are I can write myself a check for £6,000 and pay this into my normal account and once that is gone I can do that over and over YES ? How often should or could I do this without it looking like a income ? It's my componsation so I want to enjoy it and a check book only would be a pain as a lot of shops don't take them . I'm hopeing to keep my benifits as that's the reason for setting up the trust. ALLSO I'm hoping to buy a house with the cash from the trust will that effect benifits ? If I buy a house I will no longer need to claim HB but would still like to claim IS . Any help would be great

jonesMUFCforever

Yes once a trust account is set up you can write a cheque to your personal account.
You then use your personal account debit/credit card for your day to day spending.
You need to go onto the benefits board for answers about income support once you buy a property.

xylophone

http://www.markthompsonlaw.com/personal-injury-trust/personal-injury-trust-to-protect-personal-injury-compensation/

might be worth a look.

FAQ

"How do I access my Personal Injury Trust Fund?

You must set up a separate bank or building society account. You are not limited to one account, so you can have a current and a savings account. Depending on the terms of the trust property and other investments can be held. The golden rule is that all holdings should be owned by the trust, and not by you personally. The trustees will have banking facilities and the correct approach is to use only a cheque book. All Trustees should sign cheques issued on your behalf from the Trust fund. You should pay for items you buy directly from the trust bank account and avoid transferring funds to your personal bank accounts."

10pence

scottorange wrote: »

Hi I need to setup a personal injury trust very soon I understand most things about this but failing to understand the rules on how you can use your money and getting the cash out ? Can I make cash with draws over the counter as long as the other trusty co sighns the withdrawal slip ? Ive been told check book only for a trust account . So the rules are I can write myself a check for £6,000 and pay this into my normal account and once that is gone I can do that over and over YES ? How often should or could I do this without it looking like a income ? It's my componsation so I want to enjoy it and a check book only would be a pain as a lot of shops don't take them . I'm hopeing to keep my benifits as that's the reason for setting up the trust. ALLSO I'm hoping to buy a house with the cash from the trust will that effect benifits ? If I buy a house I will no longer need to claim HB but would still like to claim IS . Any help would be great

Many of these questions you'll need to raise with whoever is setting up the trust.

Just some of the issues you've raise:

It's cheque not check -- before the grammar police turn up

How often should or could I do this without it looking like a income ?
I'm hopeing to keep my benifits as that's the reason for setting up the trust

Benefit capitals rules simply put are: for means-tested benefits anything between £6000-16000 will reduce it and above £16000 stop them.
Rules regarding income are slightly more complicated and it's obvious you are seeking ways of it not impacting your benefits; as you need to consider deprivation of capital and notional capital rules.
Won't help you commit benefit fraud, but basically, any monies paid into your account can be classed as income for benefit calculations and need declaring.
The relevant benefit agencies have a right at any time to check on all your bank/savings accounts your name is attached to. At anytime they can consider you weren't eligible for benefits based on info provided leading to benefit overpayments. Keep all agencies up dated on all changes of circumstances, especially now as most will be recorded in realtime.

scottorange

Thanks all