36.2 The reasons for creating a personal injury trust
36.2.1 Trusts and means testing
If an individual is entitled to a damages award for personal injury and receives his or her compensation outright, the funds will have to be disclosed on any financial assessment for benefits. This will impact upon any means-tested benefits currently received by the individual and may prevent the client from becoming entitled to means-tested benefits in the future. The main purpose of a personal injury trust is to protect the client’s entitlement to current or future means-tested benefits and to preserve the fund for the client’s benefit and upkeep, and for the benefit of the client’s dependants or relatives.