Answering your questions regarding Personal Injury settlements
Why do I need to manage my personal injury settlement?
A personal injury settlement, both during the settlement process and after the settlement has been completed, may need managing for a number of reasons, including:
- When to apply for interim payments, how to manage them and what on-going costs to claim, plus advice on ultimate recoverability.
- Protecting the right to means tested state benefits.
- Protecting against being pressured to give money to other people or from using it in the wrong way.
- Being unable to deal with the settlement yourself due to a lack of capacity.
- To ensure that the funds are managed to provide for you for the rest of your life – we appreciate, especially with larger settlements, that this is their primary purpose.
How can Nelsons help in managing my personal injury settlement?
We can help in a number of ways:
We can set-up a Personal Injury Trust for you, so that you can protect your entitlement to means tested state benefits and/or to protect you from being pressured by others. A Trust places the settlement under the control of other people, called Trustees, who use the funds for your benefit.
We can apply to the Court of Protection, if you unfortunately lack the capacity to deal with the funds yourself. The Court of Protection will then appoint a Deputy to manage the settlement as well as the person’s general financial affairs.
We can manage the settlement for you, whether under a Personal Injury Trust or a Court of Protection Deputyship. The costs of having a professional Deputy are usually paid as part of the settlement.
The settlement is often meant to last for a lifetime and it is very important that the funds are invested appropriately – our in-house Independent Financial Advisers can advise on the full range of investment options and guide you as to which may be most appropriate for you.
How much does it cost to set-up a Personal Injury Trust?
The cost for setting up a Personal Injury Trust, including all advice, is £800 plus VAT. There is an additional charge of £150 plus VAT for registration with HM Revenue & Customs, where necessary.
Annual on-going fees will depend on the amount of work we carry out. These costs will normally be paid as part of a personal injury settlement.
If our involvement is simply the completion of a tax return, then the fees will be approximately £300 plus VAT.
The costs for a Court of Protection Deputyship application are £950 plus VAT. There is also a Court fee of £385, and a medical practitioner may also charge for the capacity report.
A Security Bond is also required and annual premiums can range from £80 to £400. There will also be on-going annual costs which may be substantial.
These fees are our standard costs but these charges may be higher if your case is more complex. If this is the case then we will provide you with a quote. However, in the vast majority of cases our standard fees will apply.
What do I do if I want to discuss my options?
"Nelsons Solicitors Limited's 'exceptional service level' and 'strength-in-depth' make it a popular choice for clients seeking inheritance tax advice or assistance with trust administration and a broad range of other asset protection issues.”Legal 500