One of the benefits of investing in a personal injury trust is that it will help you with future care costs. It is essential to note that when you are still living, you will need medical care. You should also know that the cost of care is also increasing at an alarming rate. When you develop complications you will seek local authority assistance with settling your fees. The good news is that when your compensation in a personal injury trust, you will receive local authority funding and still benefit from the funds held in your trust. The last thing that you would want is to use the compensation funds towards the cost of your care like when the compensation is held in your name. Click here to know more about personal injury trust services.
This is also beneficial as it will allow you to plan for inheritance tax. The thing is that prices of houses are increasing and this might increase the inheritance tax. The only way to make sure that the compensation is not included in your estates by placing it under a personal injury trust. By doing this, your inheritance tax will be lower. On the other hand, when the compensation is put under your name, the payable tax will be greater since the compensation is counted as one of your estates.
Besides, you should also place your compensation on personal injury trust for means-tested benefits. This is important when you and your partner are claiming any type of means-tested benefit. The thing is that when the compensation is held by you, the chances are that you may lose your entitlement benefits. The good thing with putting your compensation held in personal injury trust is that it will be disregarded as part of the calculation of your benefits. This will allow you to spend the trust fund for other vital things.
Protection on divorce is another benefit of holding your compensation in a personal injury trust. It is essential to note that one thing that happens during divorce is that the couples divide the property. This means that you will have to bring all your financial resources together. The last thing that you would want your compensation fund to be included in the finances to be divided. If you don’t want your compensation to be included in divorce then you should invest in personal injury trust. Visit our website to know about setting up personal injury trust.
The last benefit of using personal injury trust is that it will help in safeguarding your compensation for the future. One thing that you cannot avoid is pressure from family members or friends to use the funds to benefit them. It is upon the trustees of the personal injury trust to protect your compensation. For further reading about this topic, click here: https://en.wikipedia.org/wiki/Personal_injury_trust.
