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Question

What is a Compensation Protection Trust?

Answer

You may lose means tested benefits if you receive compensation for a medical negligence claim.

If you 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. 

 

How can I set up a Compensation Protection Trust?

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.

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.

 

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