Capital

Could anyone please let me know if you
receive settlement as a result of a personal injury how will this be treated for the purpose of benefits?
Regards
Patel

Compensation for personal injury sustained by the claimant is ignored for income and capital purposes, but there are some circumstances in which the state can recover from a defendant to a personal injury claim benefits already paid.

This government web page gives guidance on compensation recovery.

Hi P,

I would just like to add to what Survivor has advised.

In that any compensation for personal injury is only ignored for benefit purposes if a "Personal Injury Trust" is set up.

Also the DWP Compensation Recovery Unit, (CRU) can claim back up to 5 years of any benefits paid in connection with the injury.

Your solicitor should be able to advise you on these matters.

bro58

Hi P,

With regards to "Capital" and benefits see information here :

www.disabilityalliance.org/capital.htm

Any monies clawed back by the DWP CRU, would be taken out of any settlement, before you received any payment.

So obviously the setting up a "Personal Injury Trust" would have to take into account whether it was necessary, pertaining to the amount of the settlement. Any monies placed within "The Trust" are not classed as "Capital".

There are also rules in the way that "The Trust" must be administered.

There is also a period of 52 Weeks disregard that may be taken into account.

It is not a straight forward issue, that is why I have advised you to consult your solicitor.

Hope this helps

bro58