UC/Interest

door123

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

marcia_

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

door123

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

Yamor

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

The wording used in the legislation is that capital of the trust which is "derived" from the sum awarded in compensation is disregarded.
I would argue that interest received in the trust account is derived from the sum of compensation, so should also be disregarded.door123 said:

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

As long as the money is held on trust, then that is sufficient. So, it could be in a regular bank account in someone else's name, as that person would then be holding the money on trust for you.

The Sweet and Maxwell commentary to the legislation suggests that even a regular joint bank account where you are one of the account holders will also be sufficient, as there is still technically a trust relationship.
This is supported by the case law here:
https://assets.publishing.service.gov.uk/media/5e68fab7d3bf7f269e22a12e/CJSA_2628_2017-00.pdf

marcia_

door123 said:

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

 Yes 2 people is enough. Me and hubby are going to be trustees in mine, my solicitor says that is fine. 

 Only mainstream bank offering PIT is metro. Others are private banks with no high street presence. 

 Normal savings accounts give you no protection except for the first 12 months. After that it's counted if not in a PIT 

marcia_

Yamor said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

The wording used in the legislation is that capital of the trust which is "derived" from the sum awarded in compensation is disregarded.
I would argue that interest received in the trust account is derived from the sum of compensation, so should also be disregarded.door123 said:

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

As long as the money is held on trust, then that is sufficient. So, it could be in a regular bank account in someone else's name, as that person would then be holding the money on trust for you.

The Sweet and Maxwell commentary to the legislation suggests that even a regular joint bank account where you are one of the account holders will also be sufficient, as there is still technically a trust relationship.
This is supported by the case law here:
https://assets.publishing.service.gov.uk/media/5e68fab7d3bf7f269e22a12e/CJSA_2628_2017-00.pdf

 Thats not a PIT 

Yamor

marcia_ said:

Yamor said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

The wording used in the legislation is that capital of the trust which is "derived" from the sum awarded in compensation is disregarded.
I would argue that interest received in the trust account is derived from the sum of compensation, so should also be disregarded.door123 said:

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

As long as the money is held on trust, then that is sufficient. So, it could be in a regular bank account in someone else's name, as that person would then be holding the money on trust for you.

The Sweet and Maxwell commentary to the legislation suggests that even a regular joint bank account where you are one of the account holders will also be sufficient, as there is still technically a trust relationship.
This is supported by the case law here:
https://assets.publishing.service.gov.uk/media/5e68fab7d3bf7f269e22a12e/CJSA_2628_2017-00.pdf

 Thats not a PIT 

It is for these purposes. See para. 43 of the case law I linked to.

door123

I did not want to start a new thread. I understand. 

Is Capital above £16000 from a personal injury compensation which is in a trust. Is this disregarded for council tax?

I am North Northamptonshire 

marcia_

door123 said:

I did not want to start a new thread. I understand. 

Is Capital above £16000 from a personal injury compensation which is in a trust. Is this disregarded for council tax?

I am North Northamptonshire 

 Yes it is 

HillStreetBlues

Yamor said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

The wording used in the legislation is that capital of the trust which is "derived" from the sum awarded in compensation is disregarded.
I would argue that interest received in the trust account is derived from the sum of compensation, so should also be disregarded.door123 said:

marcia_ said:

door123 said:

Hi my understanding is that personal injury compensation is disregarded for a period of 52 weeks from when it lands in the bank account. And if placed in a trust it's disregarded indefinitely for UC.

When the compensation is put into a trust account any interest paid on the money is this also disregarded?

 Yes all money in a personal injury trust account is ignored. Unsure if a trust account even pays interest. 

I have found Metro Bank who offer a PIT account which also pays a small amount of interest. For the trust I'm going to be the beneficiary also 1 of the trustees and 1 other trustees there is only going to be 2 of us. 

Would a normal joint savings account be sufficient? As can't find any other banks.

Any recommendations on bank/building societies?

As long as the money is held on trust, then that is sufficient. So, it could be in a regular bank account in someone else's name, as that person would then be holding the money on trust for you.

The Sweet and Maxwell commentary to the legislation suggests that even a regular joint bank account where you are one of the account holders will also be sufficient, as there is still technically a trust relationship.
This is supported by the case law here:
https://assets.publishing.service.gov.uk/media/5e68fab7d3bf7f269e22a12e/CJSA_2628_2017-00.pdf

Thank you Yamor, I have been looking for PI case law over the last couple of years and turned up blank.
When reading the UC Regs, I noticed it stated " If the sum is held in trust"  not " If the sum is held in a trust,"

I have read a few things, but never been backed up with actual CL. In that reading I have noticed errors, mainly I expect is most solicitors have little understanding of benefit law.

As I couldn't find anything I would have had to open a PI Trust with the cost involved and the pittance of interest.
Cheers.

HillStreetBlues

Yamor said:

As long as the money is held on trust, then that is sufficient. So, it could be in a regular bank account in someone else's name, as that person would then be holding the money on trust for you.

The Sweet and Maxwell commentary to the legislation suggests that even a regular joint bank account where you are one of the account holders will also be sufficient, as there is still technically a trust relationship.
This is supported by the case law here:
https://assets.publishing.service.gov.uk/media/5e68fab7d3bf7f269e22a12e/CJSA_2628_2017-00.pdf

thought it easier to tack on my question that to start a new thread as it's PI related

@Yamor
With that case law my reading of it is that while Q was joint legal owner of the money (with the parent named on the account) Q remained sole beneficial owner of that money (48).

Two people (A&B) on IRB  both have an PI payout.
A puts their payment in a joint account(1) with B,  B puts their payment in another joint account(2) with A

Account 1 the money would be ignored for person A as it's in trust, it would also be ignored for person B was although legal owner they aren't the beneficial owner
Account 2 the money would be ignored for person B as it's in trust, it would also be ignored for person A was although legal owner they aren't the beneficial owner

Is that correct, or am I missing something?