Clients who have capacity are protected by the appointment of a professional trustee.

Receiving compensation for your injury can seem like the end of the road but what about the future? The compensation you receive can lead to a reduction in means tested benefits unless it is held within a Personal Injury (PI) Trust.

You are entitled to a period of grace of 52 weeks from when you first receive a payment in relation to your injury ; during which time it can be spent before these funds will count in a means test assessment but it is important to note this only applies to the very first payment received and will include payments from an insurance policy. After this time, or when further payments are received, it is important for the funds to be held in a PI trust.

A PI trust is a legal agreement known as a trust deed which names two or more people or a Trust Corporation (known as Trustees) to look after your compensation for you. When the money is placed into a PI trust it becomes known as your trust fund.

Typically it is a bare trust : the money is still yours and it can be used to pay for the things you need such as a car, care, therapy or other every day living expenses but because it is held in the trust it is separate from your own funds and it means you can still claim your normal benefits such as Universal Credit or Employment Support Allowance.

Your trustees will need to agree to any purchases made using the trust fund so it is important that you chose the right trustees.

Royds Withy King acts as professional trustee through our Trust Corporation, Withy King Trustees Limited. An individual director will be nominated to work closely with you to ensure the money in the trust is used for your benefit. The normal vagaries of life mean that you are likely to experience many changes over your lifetime (often heightened by your injury); involving a professional can help you navigate the decisions by relying on our extensive experience and knowledge to make the right decisions for and with you.

We will additionally work with you to consider life planning, advising in respect of appointing attorneys for (1) finances (funds outside the trust) and (2) health and welfare, and on making a will.

Contact us if you have any queries relating to the protection of compensation arising from a personal injury or clinical negligence claim. Please contact a member of the CPU on