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Compensation into Trust Fund?

Hi
I got a query yesterday from a friend.
Friend's wee daughter's sight was badly damaged due to a fault by a chemical company (sorry for being general).
They have paid compensation to her, in the form of a USD$ for c. $ 40k

She is paranoid about declaring it, fears it might be impact some of the benefits she gets to support the child.

While the cheque is in her name, she is adamant that it is for her daughters future and wants to lock it away until the child is older and needs to draw down on it. ...the cheque is in her name but the money isn't hers so to speak.

Any ideas of how to go about it / what to do / who she should talk to?

My initial reaction was a Trust for her daughter, but I'm no expert.

Cheers
MM
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