Protecting your compensation
Your compensation needs to be protected for you so that it lasts as long as possible. There are several issues you need to consider and we can help you with this.
Trusts
It may be appropriate to consider protecting your compensation through what is known as a Personal Injury Trust (a Trust).
By setting up a Trust, you are able to receive your compensation and also retain any means-tested benefits, now and in the future.
This is perfectly legal and acceptable to both the Department of Work and Pensions and Local Authorities. The Regulations treat Personal Injury Trusts in a special way. But the special rules only apply if you decide to 'opt in'. This means setting up a Trust.
The Trust can also protect your compensation from being assessed in the future, for example, if you need to go into residential care in later life.
You also have the peace of mind of knowing that your Trustees are able to look after things, in case you are unable to do so yourself for any reason.
Wills
You may already know that it is important for you to make a Will to cover what happens to your assets on death.
If you don't already have a Will in place (or if you would like to revise your existing Will), please feel free to contact us.
Making a Will provides you with the assurance that matters are arranged as you would like them and that there are no unexpected surprises later on.
Also, bear in mind that you should consider if any family members or friends have made a Will leaving monies to you. If they have, this may have an adverse effect on any benefits you receive (now and in the future).
Specialist advice is needed on the precise wording of their Wills to ensure that leaving monies to you isn't going to have unexpected and unpleasant consequences.
Lasting Power of Attorney (LPA)
An LPA can also be arranged at the same time as creating your Trust and Will.
Making an LPA enables you to appoint persons (Attorneys) to look after any property & investments that are not already held within your Personal Injury Trust.
A Lasting Power of Attorney is vital if you become mentally or physically incapable. It is a common misconception that your spouse / partner will be able to look after your financial affairs if you are unable to do so yourself.
Unless you take the precaution of making an LPA, you may find that a spouse / Partner has to obtain a Court Order to enable them to sign on your behalf. If you would like any further advice about this, please ask.
Independent Financial Advice
Although we do not provide financial advice ourselves, we have identified and carefully selected experts who specialise in advising people who've been through what you have.
Our advisors understand the need to protect your compensation for as long as possible and they are always willing to have an initial discussion with you, free of charge.
There is, of course, no obligation to accept any advice given but you can be sure of truly independent, good, solid advice, which differs from the kind of advice you would receive from your own bank as they are not 'independent'.
Our advisors can advise in investments, budgeting and also check that you are claiming all of the benefits you are entitled to.
We would be happy to put you in touch with a suitable advisor, if you wish.
Why choose Access Legal from Shoosmiths?
Specialist advice
You need specialist advice to get the best deal for you and your loved ones. Our specialist Private Client Team will work with you to ensure that you secure the best deal after you receive your personal injury award.
Financial matters
We can work with you and your Independent Financial Advisor to help you to secure the best possible financial security after you get your compensation.
Share this article
All documents should be read and used in accordance with the terms and conditions. This document is for your general information only and is not a detailed statement of the law. It is provided to you free of charge and should not be used as a substitute for specific legal advice. If you require specific legal advice please contact our helpline on 03700 86 86 86.
