Disabled Trust

What is a Disabled Trust?

A Disabled Trust can mean two different things:

  1. another name for a Personal Injury Trust that contains money received as a consequence of personal injury or
  2. a trust founded to protect the interests of a disabled person generally.

A personal injury related Disabilities Trust is a trust created for disabled individuals, which is intended to supplement, but not replace, any means-tested benefits to which the disabled individual may be entitled.

Personal injury related Disabilities Trusts are established for working-age adults or some children who want to retain their entitlement to means tested benefits, now or in the future, such as:

  • Income Support
  • Housing Benefit
  • Working Families Tax Credit
  • Disabled Person’s Tax Credit
  • Income Based Jobseeker’s Allowance
  • Employment & Support Allowance
  • Some care at home/in residential care
  • Council Tax Support (for those of Pension age) 

Under the current rules – if you have over £6,000 capital you are at risk of having some or all of your benefits reduced. If you have over £16,000 then you are at risk of losing them all entirely. If your compensation is paid directly to you, rather than put into a trust, then you will be classed as having this money as your disposable capital.

If you are expecting to receive more than £6,000 in compensation for your personal injury, then you should consider setting up this type of Trust. Even if you are expecting to receive less than £10,000 in compensation for your personal injury, you should still seek advise on whether to establish a Trust of this kind as it still may prove cost effective.

In other circumstances, a traditional Disabled Trust is usually founded by a third party for the benefit of another e.g. a child with a disability. It has certain tax and other advantages apart from fulfilling a protective function.

 

Click 'email your query' to fill in our enquiry form so we can contact you.

Request a No Obligation Pack

Mailing List

EAT shows a number of factors decide when TUPE applies

In the recent case of ALNO (UK) Ltd v Turner the EAT stressed the need to apply the “multi-factorial” test established in an earlier TUPE case

Click here to view more

Good news for self builders

Local authorities now have a statutory duty to meet local demand for self build and custom build. Groups should register for land in their area.

Click here to view more

Can segregating boys and girls at school be sex discrimination?

High Court rules draft Ofsted report was wrong to label segregation of girls and boys discriminatory.

Click here to view more

Receive the latest news, events and updates from Wrigleys:

Follow Wrigleys: