Coldrick on Personal Injury Trusts (eBook)

Chapter 1: An overview of personal injury trusts Introduction Getting over the fear factor What exactly is a 'personal injury trust'? Do all personal injury clients need advice on personal injury trusts? Does advice on personal injury trusts only need to be given to those already in receipt of means tested benefits? Do personal injury trusts have tax advantages? Do personal injury trusts help clients retain entitlement to means tested benefits? Timing: when is it 'too late' to found a personal injury trust? Independent financial advice and the Trustee Act 2000 (TA 2000) A summary of the financial obligations of trustees of personal injury trusts The Solicitors' Accounts Rules 1998 and personal injury trusts Thinking long term Summary of Chapter 1. Chapter 2: Choice of personal injury trust Why is it important to consider different types of personal injury trusts? The implications of the 2006 Budget upon the choice of personal injury trust Underlying considerations behind the choice of a personal injury trust Types of personal injury trusts Original Section 89 IHTA trusts for the disabled Making a decision over the choice of trust Finance Act 2006: the implications for pre 22 March 2006 personal injury trusts and future personal injury trusts The extension of Section 89 IHTA trusts for disabled persons The capital gains tax principal private residence exemption, ordinary discretionary trusts and Section 89 and 89A trusts Summary of Chapter 2. Chapter 3: Getting technical - means-tested benefits Benefits implications of personal injury trusts A brief overview of benefits Mainstream income-related means-tested benefits and awards for personal injury A word about tax credits Residents in long-term-care and the receipt of personal injury awards Personal injury trusts and care provided at home Additional notes on personal injury trusts and means-tested benefits Pension credit. Chapter 4: Choice of trustees Can a settlor be a trustee of his/her own personal injury trust? How many trustees should there be? Are friends and family suitable trustees? Are professional trustees appropriate? Can trustees be beneficiaries? Can a trustee live abroad? How old should a trustee be? Who should never be a trustee? When does trusteeship take effect? Summary of Chapter 4. Chapter 5: Personal injury trusts and investment Introduction Defining and meeting the investment challenge Modern Portfolio Theory and its implications for trust investment policy Building an asset class portfolio - the basics Selecting and working with a financial adviser Summary of Chapter 5 and conclusion. Chapter 6: Periodical payments A brief history Why have few structured settlements been implemented in the past? The Courts Act 2003 Can periodical payments be assigned or charged? What about variable periodical payments orders? Are periodical payments treated any differently than a lump sum for benefits entitlement? The viability of periodical payments and indexation The indexation of periodical payments The indexation issues RPI The Annual Survey of Hours and Earnings (ASHE) 6115 Other elements The creation of a two-tiered system The advantages of periodical payments The disadvantages of periodical payments Other issues Conclusions. Chapter 7: Personal injury trusts and the Court of Protection Introduction Jurisdiction The Court of Protection and personal injury trusts Why apply to found a personal injury trust for a patient ? Should the deputy be retained? Worked example of an application for a personal injury bare trust Court of Protection Application form Guidance notes Court of Protection Annex A Supporting information for property and affairs applications Court of Protection Assessment of capacity Guidance notes Court of Protection Witness statement. Chapter 8: Will-making in the context of personal injury bare trusts Executors The beneficiaries Indecisive testators 'Letters of Wishes' Property issues and succession Inheritance tax planning in the context of personal injury trusts Death of family members and benefits-related planning Death of carers Other potentially important matters Summary of Chapter 8. Chapter 9: Property transactions and personal injury trusts The natural link between personal injury trust work and property transactions What are the advantages of the trust framework for a purchase? Practical issues to consider on a purchase Legal issues to consider on a purchase prior to exchange of contracts Legal issues on a purchase post completion What are the relevant tax-related issues for personal injury trusts and property transactions? Worked examples of property transactions and personal injury trusts. Chapter 10: Personal injury trusts - some problem areas Fatalities cases Professional negligence compensation Other types of compensation Past care awards Divorce Disagreement among the trustees Can the defendant reduce the award if a personal injury trust is contemplated? The implications for litigators The choice and use of powers comprised in a personal injury trust. Chapter 11: General precedents Precedent covering letter and guide for clients Precedent Pro Forma Instructions Precedent Guidance for Beneficiaries and Trustees Precedent Guide on Compensation Protection Trusts for Benefit Paying Agencies Including the Local Authority Precedent Resolution to Distribute. Chapter 12: Drafting personal injury trusts The fundamental responsibilities of the draftsman in using these personal injury trust precedents The style of the following personal injury trust precedents Who may legally draft a personal injury trust? Common factors contained within the personal injury trust precedents Uncommon factors contained within the personal injury trust precedents Precedent for a Personal Injury Discretionary Settlement: Notes Precedent for a Personal Injury Flexible Life Interest Settlement: Notes Precedent: Personal Injury Bare Trust: Notes Precedent for a Personal Injury Bare Trust: Mentally Capable Adult Precedent for a Personal Injury Bare Trust: Court Order for a Minor under rule 21.11 of the Civil Procedure Rules 1998 Precedent for a Personal Injury Bare Trust: Court of Protection for a Mentally Incapable Beneficiary Precedent for a Personal Injury Life Interest Settlement: Court of Protection for a Mentally Incapable Beneficiary Precedents for Personal Injury Section 89 IHTA 1984 Trusts for the Disabled: Notes Precedent for a Personal Injury Section 89 IHTA 1984 Trust for the Disabled: Wide Form Precedent for a Personal Injury Section 89 IHTA 1984 Trust for the Disabled: Narrow Form for a Mentally Incapable Person Examples of the Type of Further Provisions the Draftsman May Also Choose to Incorporate. Appendix 1: The Standard Provisions of the Society of Trust and Estate Practitioners (1st Edition) Appendix 2: Paying family carers: income tax and national insurance issues Appendix 3: A practitioner's guide to Court of Protection property procedures Index