Compensation Protection
Compensation Protection Trusts
If you have received money or compensation as a result of an accident or injury, our compensation protection lawyers can provide specialist advice to ensure that any compensation payment that you receive for a personal injury or in respect of a claim for clinical negligence is protected. It may be beneficial to create a Compensation Protection Trust, otherwise known as a ‘Personal Injury Trust’.
If you are in receipt of means-tested benefits and receive a compensation payment, this may result in your means-tested benefits being reduced or stopped altogether. Paying your compensation into a Compensation Protection Trust can ensure that your entitlement to means-tested benefits is not affected. The effect of the Trust is that the compensation payment will be disregarded in the assessment of your entitlement to means-tested benefits.
A Compensation Protection Trust can also ensure that your compensation is not taken into account in any assessment of your contribution to the cost of your care fees should you ever require long term care.
Compensation Protection Trusts are different to Trusts for Vulnerable Persons or Disabled Person’s Trusts, more detail about which can be found here.
Recent experience
Advice to Individuals:
Working with the owners of significant privately owned family companies to ensure an effective succession to the control and capital value of the business.
Regulatory nuptial arrangements to protect family assets, both before and after a marriage.
Advising non-domiciliaries how best to structure assets before becoming UK resident.
UK advice:
We act for more than 30 landed estates and act as trustees of a considerable number of these.
We have recently provided family constitution advice to a client with a £15m family business and a disparate successor generation.
Our Tax Compliance team has worked with our tax planning Lawyers to develop a comprehensive tax compliance and mitigation service.
Advice to trustees:
We are the sole legal advisers to the trustees of a group of eight family trusts that own significant City property interests and investment portfolios.
Have developed with the trust beneficiaries an agreed understanding of the future for the family wealth and related interests.
Advice to institutional trustees:
Advice regarding the availability of the ‘motive defence’ to mitigate significant beneficiary tax liabilities.
Managing a £50 million distribution of limited partnerships interests.
Negotiating warranties, indemnities and advice as to the conditions on assignment.
Advice to non-UK law firms:
Advising as to best practice for a Liechtenstein Foundation in view of the recent UK/Swiss tax agreement.
Advising as to how best to structure the tax efficient receipt by a UK resident (US citizen) of capital distributions from an existing offshore structure.
Areas of focus
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