Personal Injury Payment

skye_

Hi, I'm on ESA support group and full PIP. I was in a really bad car accident. An eldery man disreguarded a junction and came straight into a 60pmh road and basically T-boned me when I was driving at speed. I was trapped in car etc. They're talking about a 5 figure payment. I know about a personal injury trust but was reading the first payment gets disreguarded for 52 weeks. Am I correct in thinking if I get 10k, spend 5k on stuff within that 52 weeks, I'll be below the 6k threshold and won't need to make a trust? Thanks

poppy12345

It can be disregarded for up to 52 weeks but this only applies if you're setting up a trust for the money to go into. You can't just spend the money on anything you want within that time because it can be seen as deprivation of capital. I found this link here, which maybe helpful.

https://www.markthompsonlaw.com/i-have-received-personal-injury-compensation-and-i-claim-means-tested-benefits/personal-injury-trust-to-protect-personal-injury-compensation/

skye_

poppy12345 said:

It can be disregarded for up to 52 weeks but this only applies if you're setting up a trust for the money to go into. You can't just spend the money on anything you want within that time because it can be seen as deprivation of capital. I found this link here, which maybe helpful.

https://www.markthompsonlaw.com/i-have-received-personal-injury-compensation-and-i-claim-means-tested-benefits/personal-injury-trust-to-protect-personal-injury-compensation/

Ah, ok thanks.
So, could I keep say 4k in my account and put 6k in the trust or does it all need to go in?

poppy12345

You either want to keep all of it or put all of it in a trust. I don't think you can choose to put part of it in a trust.

Also be aware that if you are claiming any of your benefits because of your injury then these will need to be repaid back from your compensation amount.

The Compensation Recovery Unit (part of DWP) will be informed of your compensation amount.

Have a read of this. https://www.gov.uk/government/publications/compensation-social-security-benefits-and-lump-sum-payments-technical-guide

skye_

poppy12345 said:

You either want to keep all of it or put all of it in a trust. I don't think you can choose to put part of it in a trust.

Also be aware that if you are claiming any of your benefits because of your injury then these will need to be repaid back from your compensation amount.

The Compensation Recovery Unit (part of DWP) will be informed of your compensation amount.

Have a read of this. https://www.gov.uk/government/publications/compensation-social-security-benefits-and-lump-sum-payments-technical-guide

No, I've been claiming since 2013 as I have a genetic disorder, nothing to do with the crash. 
Thanks, I'll probably have to get some specialist help when I receive the payout.