Personal Injury Trust Property Procedures
A personal injury award often triggers a decision to move house. This may be due to:
- the personal choice of the client in terms of standard of living or location;
- the need to move closer to family members, carers or amenities;
- the client’s physical needs may have changed, their existing property may no longer be suitable;
- there may be a need to accommodate family members and or carers.
Bargaining power - Trustees are well placed to negotiate the purchase price. Evidence of funds can be provided without delay. A ‘no strings attached’ cash offer (subject to contract and survey) will always be attractive to a seller.
Speed - Purchase monies can be made available at short notice.
Flexibility - The trust fund may enable a client to purchase a property and deal with the sale of an existing property at a later date. If a vulnerable person is involved the transaction can proceed without Court of Protection involvement.
Structure - A Personal Injury Trust provides a safe and identifiable framework for property transactions and the legal structure avoids any confusion on accessing a client's entitlement to means tested benefits. This is particularly important if the client still has a 'pre-personal injury trust' property to sell.
Trustees need to protect themselves and seek specialist advice before committing to a purchase.
Common concerns
- Is the level of the purchase price appropriate in the context of the available fund?
- How important are the needs of others such as partners, spouses, parents, brothers and sisters?
- What if the house needs to be extended or adapted?
- What if others want to contribute towards the purchase price or cost of alterations?
- What is the appropriate budget for improvements?
- What happens on eventualities such as the marriage, divorce, death of the client or of contributing third parties.
- What are the tax implications?
- What if I get it wrong?
