The Benefits of Holding Your Compensation in a Personal Injury Trust
One of the benefits of investing in a personal injury trust is that it will help you with future care costs. One thing that you should understand is that as long as you live you will need medical assistance 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. This is where personal injury trust comes in as it will allow you to benefit from the funds held in your trust and also receive local authority funding. This is not the case when the compensation is held on your name as you will use the compensation benefits to take care of the bills.
Personal injury trust will also help in planning for inheritance tax. You need to understand is that the cost of houses is becoming expensive and this also means that inheritance tax also increases. The only way to make sure that the compensation is not included in your estates by placing it under a personal injury trust. This is important as it will help in reducing the inheritance tax. This is not what will happen when you put compensation under your name as it will be included in your estate making the inheritance tax to be higher.
You should also invest in personal injury trust for means-tested benefits. This will especially benefit the people who are trying to place a claim for any type of means-tested benefits. The thing is that when the compensation is held by you, the chances are that you may lose your entitlement benefits. But when the compensation is put under personal injury trust, it will not be used in the calculation of your entitlement benefits. This way you will use then trust funds for other vital things.
You should also hold your compensation on personal injury trust for protection during the divorce. 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. One thing nobody would want is for your compensation to be included in the finances to be divided. For that matter, it is recommended that you have your compensation held in personal injury trust so that they are not included in the assets to be divided.
To sum up, you should also use personal injury trust as it will help in safeguarding your compensation for the future. It is natural that some of your family members or friends might want you to use the funds to benefit them. The good thing with personal injury trust is that your compensation will be protected by trustees to benefit only you.