Personal Injury Trust Calculator

A personal injury trust holds compensation from a personal injury claim so that it is disregarded when assessing eligibility for means-tested benefits such as Universal Credit, Housing Benefit, and Council Tax Reduction. Without a trust, compensation over £6,000 reduces benefits and over £16,000 eliminates them entirely. The trust must be set up within 52 weeks of receiving compensation.

A basic bare trust costs £300-£800 to set up. A discretionary trust costs £1,000-£2,500. Some solicitors include trust setup in the claim costs. Ongoing management fees (if using a professional trustee) are £500-£2,000 per year depending on complexity. Self-management is free but requires proper record-keeping.

You need a PI trust if you receive means-tested benefits (or might in the future) and your compensation exceeds £6,000. Benefits affected include: Universal Credit, Housing Benefit, Income Support, Pension Credit, Council Tax Reduction, and free school meals. The trust must be established within 52 weeks of receiving compensation — if you miss this deadline, the money counts as capital.

Yes, but you cannot be the sole trustee — you need at least one other trustee (typically a family member or friend). Being a trustee gives you more control and avoids professional fees. However, you must keep meticulous records of all transactions and be able to demonstrate that the money is still compensation funds if challenged by the DWP.

Trust funds can be spent on anything that enhances your quality of life related to your injury: adapted vehicles, home modifications, care costs, medical treatment, holidays, clothing, and daily living costs above what benefits provide. You must keep receipts and records. Spending must be reasonable and in the beneficiary's best interest.