Q&As

Does a personal injury bare trust preserve a person's entitlement to benefits or protect the lump sum award being taken into account for means-tested purposes? If so, is there any authority for this?

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Produced in partnership with Rosalind Hamlyn of Thomson Snell and Passmore LLP
Published on LexisPSL on 20/06/2019

The following Private Client Q&A Produced in partnership with Rosalind Hamlyn of Thomson Snell and Passmore LLP provides comprehensive and up to date legal information covering:

  • Does a personal injury bare trust preserve a person's entitlement to benefits or protect the lump sum award being taken into account for means-tested purposes? If so, is there any authority for this?

Receipt of personal injury damages by a claimant, unless placed in trust, will affect assessable capital and income as regards means-tested benefits.

The capital threshold for most means-tested benefits is £6,000, with an upper limit of £16,000. This figure includes not only the claimant's capital, but also that of a spouse or civil partner or someone with whom they live as such. Between £6,000 and £16,000, the claimant partially loses benefits on a sliding scale. It is important to check that there is no other capital

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