What is a Personal Injury Trust
Personal injury trust is the name given to trusts which are usually set up by solicitors from payments as a result of an accident, injury or malpractice. The funds normally are paid directly via the solicitor into a suitable trust. They are normally either absolute or discretionary in nature and the settlor of the trust is normally the injured party. The solicitor is usually responsible for drafting a suitable trust. For the avoidance of doubt, the term “Personal Injury Trust” has no statutory basis. If at all possible, the trust should be set up before the individual receives the funds otherwise the funds will be treated as belonging to the individual before the trust was established.