Personal injury and disabled persons trusts

Personal injury trusts

For most people, a bare trust is the most appropriate type of trust. The injured person retains a large degree of control in a bare trust and the trust is tax neutral. If the person changes their mind later, the bare trust is also easiest to unravel.

Precisely because of the control that a bare trust gives to an injured person, some people will want to opt for a different type of trust because they fear what they might do if they had that control.

The different types of personal injury trust and how to select the most appropriate type are discussed in this Practice Note. It also explains how personal injury trusts can be used to ring fence compensation payments from assessment for means tested benefits and it explains the duties and powers of trustees of a personal injury trust.

See Practice Note: Personal injury trusts.

Tax and the personal injury trust

This Practice Note provides an overview of the inheritance tax (IHT), income tax and capital gains tax (CGT) treatment of the main types of trust used as

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