The purpose of compensation for severe, permanent disability is to meet the injured person’s additional needs that arise from their disability for the rest of their life. The injured person’s compensation may also be intended to replace their net loss of income from earnings or pension if their injury has left them unable to work. If a severely injured child, teenager or adult will have to rely on their compensation to pay for essential care, therapies, specialist equipment and adapted housing throughout their life, it is important that arrangements are made to protect their money, whilst ensuring that it is available and accessible to meet those essential needs. In most claims arising from severe injury which has caused lifelong disability, such as cerebral palsy, brain injury or spinal cord injury (SCI) cases, or where the injured person is a child or lacks mental capacity, we advise that large compensation funds should be professionally managed. The court also has rules relating to the management and protection of compensation for ‘protected parties’, such as children, and adults who are vulnerable owing to brain injury or learning disability. Our medical negligence and personal injury teams work closely with our Court of Protection deputyship specialists to ensure that our clients receive the highest level of specialist guidance and support in managing their own or their child’s compensation. How can I protect my injury compensation? For large compensation payments arising from severe injury claims, there are two ways in which we invest, manage and safeguard our clients’ compensation funds. The choice of process depends on the injured person’s (expected or actual) mental capacity and vulnerability at the age of 18. Court of Protection deputyship If the injured person does/will not have mental capacity to manage their finances at the age of 18 we ask the Court of Protection to appoint a deputy to make financial decisions in the injured adult or child’s best interests. This also enables the deputy to take care of day-to-day management of the disabled person’s finances, such as paying household bills, carer’s invoices and other expenses associated with their disability. Personal Injury trusts If the injured person has or is expected to have mental capacity at the age of 18 but is vulnerable owing to physical, emotional or behavioural disability, we can help their family set up a personal injury trust which will hold and manage the compensation. Where a large sum of compensation is to be managed via a personal injury trust, we recommend that at least one of the trustees should be a solicitor to ensure that the trust manages the injured person’s compensation effectively and complies with all of the relevant rules and regulations. Will I lose my benefits if I get compensation for my injury? Compensation funds that are managed via Court of Protection deputyship and personal injury trusts are excluded when the individual’s finances are assessed for means-tested benefits, so they do not affect the disabled person’s entitlement to means-tested welfare benefits. Find out more about how we help families of children with cerebral palsy, severe birth injury and neonatal brain injury protect and manage their child’s compensation here.
