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Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
If you have won compensation in a personal injury claim, a compensation protection trust allows you to protect the money from creditors without restricting your access.
They are also useful for preventing a substantial compensation payout from being spent too quickly.
In a compensation protection trust, trustees manage the compensation lump sum, these may be family members or a professional trustee such as a solicitor, if the sum is large, or you and your family don’t want the burden of financial and tax administration.
In this guide, we explain what's involved in setting up a compensation protection trust, explain its benefits, and answer some frequently asked questions.
Our network of trust lawyers can help you set up this type of trust.
Contact us for a free case assessment to discuss your circumstances and get a no-obligation quote for the services of a specialist lawyer.
A compensation protection trust, also known as a personal injury trust, is a trust that is set up to protect compensation payments from being claimed by creditors.
It is a way of protecting your eligibility for means-tested benefits such as pension credit, housing benefits, and more.
You may set up a compensation protection trust following medical negligence, a road traffic accident, or an incident of clinical negligence.
A compensation protection trust protects your eligibility for the following means-tested benefits:
You can set up a trust with funds from:
The type of trust that you should set up and even if a trust is appropriate depends on the circumstances of the individual who was injured.
A compensation protection trust, sometimes called a special needs trust, allows you to protect the funds from a compensation payout without affecting your eligibility for means-tested benefits.
Your benefits including residential care assessments, income support, and income-tested job seekers allowance will be preserved under a trust.
Your trustee can invest your compensation through a trust in managed assets, including stocks, property, or funds to provide you with an income.
The primary benefit of a compensation protection trust is that it protects your current or future entitlement to benefits.
Other benefits include:
It can take some time to set up your trust, the length of time it will take depends on your circumstances, including the size of your payout.
If you can, you should set up your trust as soon as possible, it’s in your best interests to set up the trust before any compensation payment has been received.
Further, you should set up your compensation protection trust within 52 weeks of receiving an interim or settlement payout, otherwise, your eligibility to receive benefits could be impacted.
Yes, however, it is usually a good idea to speak with a legal professional when considering setting up a trust. They can help you choose the most appropriate trust to put in place, and whether a trust is required.
Consulting a financial expert is especially important if the type of trust you want to set up has tax implications, or it is being set up to provide for dependants.
You must choose a trustee or more than one trustee to manage your compensation protection trust. This can include yourself so that you are both beneficiary and trustee of the trust.
A minimum of two trustees is required, unless one of the trustees is in a trust corporation, and there can be a maximum of four.
Trustees should be responsible, trustworthy, responsive, and financially savvy. They must also be over the age of 18 and be mentally capable of undertaking their trustee duties and responsibilities.
Yes, the purpose of compensation is to cover cover past losses and meet future costs.
The main benefit of a compensation protection trust is that you can access compensation funds and remain entitled to means-tested benefits.
If the trust makes income via interest or rental income this must be declared in your tax return.
Capital gains tax (CGT) is payable for any sale of property held in the trust. CGT must be paid within 30 days of the property disposal.
The compensation in the trust belongs to the trust, not the individual so these funds won’t directly impact their personal tax or allowances.
When you die, funds in your compensation protection trust will be transferred to your estate and should be distributed to your beneficiaries by your executors as per your will.
If you die without a will, funds will be distributed as per the rules of intestacy.
A compensation protection trust can only contain a settlement from a personal injury. You can't add funds from other sources.
Yes, when a compensation protection trust is set up for children their guardian or legal representative will appoint the trustees.
The court will need to approve the appointment of trustees for a minor to ensure they will run the trust for the child’s benefit.
Our network of trust lawyers can help you decide whether a trust is right for your circumstances and if so, offer advice on setting up the right kind of trust.
We can also guide you during the setting up of a trust, including helping you pay the right tax.
Contact us today to explore compensation protection trusts further and get a fixed-fee quote for the services of a specialist lawyer to set one up.
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