Do I need a Personal Injury Trust

craftygran

I am due to receive between £2200 and £2800 for a Personal injury claim. My husband claims income related ESA and I claim carers. We have savings from an inheritance I received several years ago but have fallen foul of dwp rules of what we can spend the money on. At present they are treating us as having £10000 and our benefits are reduced accordingly. Is it worth setting up a pit for the amount of compensation I am looking at receiving.

TELLIT01

craftygran wrote: »

I am due to receive between £2200 and £2800 for a Personal injury claim. My husband claims income related ESA and I claim carers. We have savings from an inheritance I received several years ago but have fallen foul of dwp rules of what we can spend the money on. At present they are treating us as having £10000 and our benefits are reduced accordingly. Is it worth setting up a pit for the amount of compensation I am looking at receiving.

Money from a personal injury claim will be disregarded for 12 months anyway so will have no immediate effect on your benefit. As the intention behind setting up the trust is specifically to claim income related benefit I'm sure it would be scrutinised very closely to see if it did fall under 'Deprivation' rules.

craftygran

Thanks for your reply, so if the compensation will be disregarded for 12 months does that mean I can spend it on whatever I want or will they still treat me as having the money at the end of 12 months.

NYM

craftygran wrote: »

Thanks for your reply, so if the compensation will be disregarded for 12 months does that mean I can spend it on whatever I want or will they still treat me as having the money at the end of 12 months.

You may have already seen these links, if not, they may give you further information to help you decide if a Trust is advisable.


Money Advice Service

Personal Injury Trust..