Personal Injury Trust
A trust is a device in English Law which allows you to be legally separated from your money whilst still having control of it.
What is a Personal Injury Trust?
A personal injury trust is a special kind of trust set up to enable you to retain your entitlement to claim means-tested state benefits. There is only one mechanism for doing this though there are lots of names for it. You may hear people refer to a Special Needs Trust, Compensation Protection Trust or Plan, or a Benefits Protection Trust. They are all the same thing.
Trusts are not dodgy, nor do they have any great tax savings purposes. Your compensation is held on trust for you, for your benefit, by your Trustees.
Even if you are not on benefits now, you should still consider this advice carefully, as you may need to claim benefits in the future.