Funds held in a PI trust are disregarded capital for the purposes of means tested benefits. Therefore it is very important to advise clients on setting up a PI trust if the client is claiming means tested benefits or may ever claim benefits or require local authority funded care in the future.
A PI Trust may also be useful for other reasons such as:
If your client is a child and the damages award is substantial, the court will often only approve the settlement if one of the trustees is a professional.
Click here for more information about PI trusts.
Click here for more information about sending damages to clients who are on benefits.