Having recently secured settlement for a client at just under £50,000.00, I was asked by her whether she would need to take any measures to protect this money.
Many of my personal injury clients receive means-tested state benefits such as Employment and Support Allowance (ESA). Especially those who have suffered injuries so serious that they are no longer able to work.
The current law states that individuals in receipt of means-tested state benefits must declare any savings in excess of £6,000.00. The amount of savings the individual holds will reduce the amount of means-tested state benefits they are able to receive. Where an individual holds more than £16,000.00, they will not be entitled to receive state benefits.
It is not uncommon for our Personal Injury Department to recover £6,000.00+ in settlement for our clients.Depending on their injury and the circumstances surrounding their claim.
This could mean that clients who receive more than £6000.00 in compensation would have to spend their settlement on everyday living expenses until they are entitled to full benefits again. In cases like this one where the compensation exceeds £16,000.00, it could have even more serious implications for the individual.
However, at Ringrose Law we are able to assist our clients by suggesting an appropriate Trust. A Trust will allow the client to keep their settlement protected and still receive their means-tested state benefit.
Our Personal Injury Department at Ringrose Law provides a comprehensive service from start to finish. We work with our clients to ensure that their compensation is maximised and protected. We consider and advise on all areas of loss (lost earnings, lost leave, ruined clothing, damage to equipment or personal belongings) and strive to do the very best for our clients.