Compensation protection trusts

If you make a successful claim for compensation following a personal injury or because of medical negligence and the money you are awarded is paid to you personally you may lose your entitlement to means tested benefits.  Setting up a Compensation Protection Trust can enable you to make full and free use of your compensation without forfeiting the entitlement you may have to means tested benefits. 

If you choose to use a Compensation Protection Trust the money that you are awarded would be paid to Trustees who would hold the funds on your behalf.  You would retain the right to demand the funds or the income from the funds at any time and the Trustees would have no right to use the funds for any purpose other than for your benefit.  In essence, you would still own the funds but they would be registered in the names of the Trustees. 

Placing the money in a Compensation Protection Trust could also have practical advantages as you would not have to deal with the day to day business of looking after the money or investments if you did not wish to do so; that could be left to the trustees unless and until you wish to be involved in investment decisions.

Tozers will help you decide whether the Compensation Protection Trust is right for your circumstances, advise you on the tax implications of establishing the Trust and help you to choose your Trustees.  We will prepare the papers you need to establish the Trust and offer as much or as little support as you need. 

Most compensation protection trusts require very little ongoing administration but once your trust has been established our dedicated Trust Officer can offer a comprehensive trust administration service should you want extra support.