Skip to main content
Our Services

Personal Injury Trusts

What Is a Personal Injury Trust and When Is It Needed?

A personal injury trust or a “PIT” can be set up if someone has had an injury and received compensation as a result by way of a settlement.

Usually, a PIT is set up when the injured person has capacity to make decisions (unlike when a Deputyship is required).

Why have a Personal Injury Trust?

Compensation can affect your entitlement to means-tested benefits and so a PIT can ringfence your settlement monies so that these funds are not considered when looking at entitlements for benefits.

A PIT will cover the management of several types of expenses including medical fees, home adaptations, payment of bills, utilities, filing tax returns and a most financial affairs.

A PIT can also help to protect settlement funds from third party claims. It also provides a structured way in which to manage settlement monies in the injured person’s best interests at all times.

smiling women with suits, sitting

Who can act as Trustee?

When choosing a trustee, it is recommended that you select trustworthy individuals. Typically, this can include family members, friends, or professional trustees such as solicitors. Trustees must understand their responsibilities and the need to act in the best interests of the beneficiary.

The injured person will also be involved in decision making.

Sometimes it is suggested that a Protector within the trust is also appointed to ensure that certain financial information is shared and to safeguard transparency.

A man reviewing a document

Preparing a Trustee Deed

A solicitor can help you draft a trust deed which will include details such as the reason the trust was created, it will name the trustees, the beneficiaries and outline how the trust fund should be managed and used.

A trust account will also need to be opened specifically for the PIT.

The trust’s financial situation should be regularly reviewed to ensure that the use of the injured parties funds are being used in their best interests.

Setting up and running a Personal Injury Trust can be complex therefore it is advisable to seek legal advice before doing so. If you have any questions or require further information please contact one of our specialist lawyers at Apricity Law:

Get in touch

Ready to Take the Next Step?

Let us support you through your legal journey with expertise and care.