In such challenging times financial security and peace of mind are crucial. If you or your client are due or have received financial compensation within the last 52 weeks as a result of medical negligence then creating a trust to receive these funds can be very beneficial.
Having a medical negligence trust enables appointed trustees to carefully manage and invest the compensation funds, ensuring they are available to support the individual’s needs in the future.
The main benefits of setting up a medical negligence trust are:
The compensation is placed outside of means tested benefits assessment
If the compensation is paid into trust, then the funds are not considered when assessing the patient’s means-tested benefits or care funding eligibility.
The compensation is intended to help the beneficiary pay for necessities such as house adaptations, specialist equipment or support so they can live their life as close as possible to the one they had prior to the practitioner’s malpractice.
Loss of capacity and asset protection
If the patient has lost, or was to lose, mental capacity to manage their own affairs as a result of the medical malpractice, by having a trust in place the trustees can arrange payments on the patient’s behalf.
The trust acts as a safeguard from pressures within a family to use the funds for other purposes, as the funds are ringfenced away from the beneficiary’s personal bank account.
Depending on the type of trust set up, the trust can also shield the compensation funds from creditors, lawsuits, or potential bankruptcy, providing additional security for the patient.
How Ludlow can help
- Our expert team can help you to set up and administer the trust in line with all the necessary legal and tax requirements.
- As a professional corporate trustee, we can offer the expertise with the long-term management of funds and assist with budgeting for client’s needs. We are one of the few corporate trustees who can provide a bank account for all of our trusts.
- Acting as an independent trustee, we can ensure that the beneficiary’s interests are diligently maintained and can act as an intermediary between them and their family members.
Speak to one of our expert advisors about how we can help you establish a medical negligence trust.