Frequently Asked Questions on Keeping Means Tested Benefits
1. When I get my compensation, can I keep getting benefits?
If you are in receipt of non means tested benefits, such as Industrial Injuries Disablement Benefit, Attendance Allowance, Disability Living Allowance, then your benefits will not be affected by receiving a compensation payment.
If you are 60 or over when you receive your compensation payment, your benefits will not be affected.
However, if you are under 60 and in receipt of means tested benefits such as Jobseekers’ Allowance or Income Support then receipt of your benefits will be affected by having capital, the figure currently is over £6,000. In this case, we would recommend that you set up a Special Needs Trust which allows you to keep getting state benefits.
2. When do I need to set up a Trust?
It is best to set up a Trust before you receive any compensation, even before an interim payment.
3. Who can be the Trustees of the Trust?
Either a family member, a Trustee appointed by the Court, or anyone you choose to appoint.
4. Can I spend the money on what I like in the Trust?
The Trustees of your Special Needs Trust can pay for services or benefits provided for you for example, house purchase, holidays, a car, travel, therapy or care costs.
5. How much will it cost?
Setting up such a Trust costs approximately £500 plus VAT.
6. How can I set up a Trust?
Ask your solicitor whether it is appropriate for you and if it is, they will arrange one for you.
The paperwork is not complex and you shall receive straightforward advice about what needs to be done.
7. What other advice will you give me?
To make a Will.
This is a general guide. It is not a full or authoritative statement of the law or current change. Changes in the law will make this gradually less accurate as time goes by.






