You’ve been told that you’re entitled to compensation for your injury which is good news but you may find that, without some early planning, your award could bring some unnecessary and unwelcome financial consequences.
How might my compensation be affected?
If you receive benefits from the Department of Work and Pensions (DWP) or help from your Local Authority towards the cost of your care and support, the calculation of the amount you receive is usually based on an assessment of your savings or income (a “means test”). Receiving compensation for your injury changes your financial circumstances and could result in you losing the financial support you have from your benefits.
What’s the solution?
The creation of a simple trust to look after your award can enable you to retain your benefits as well as the additional support that you might need.
I’m not receiving any financial entitlements so why does it matter?
The certain thing about life is its uncertainty! Your future may involve changes that you cannot predict so, even if you’re not receiving care and support now or your disability doesn’t entitle you to any means tested benefits, your circumstances may change over time.
What’s more, you may be entitled to funds you don’t know about – its worth asking about that now so you can plan appropriately.
When should I act?
You need to set up the Trust within 52 weeks from the date that you receive any compensation payment if it is going to be disregarded. That payment may be an interim or final payment from an insurance company or, in some circumstances; it may be a payment from another source such as a benefit connected with your employment. It is, therefore, important to act promptly if you know that a payment is due.
Hyphen Law will help you make the most of your compensation payment – get in touch and find out how we can help.