Personal Injury And Disabled Trusts

10 November 2004 / Mark McLaughlin CTA (Fellow) , David Coldrick

Issue: 3983 / Categories: Comment & Analysis

MARK McLAUGHLIN and DAVID COLDRICK outline some important considerations and forthcoming changes affecting trusts of damages and trusts for the disabled.

Blame And Claim?

IT IS ALLEGED that society has developed a culture of 'blame and claim' although lawyers naturally resent this assertion and point to contrary evidence since the introduction of the 'Woolf Reforms' of civil procedures.

For accidents involving physical injury there can appear to be a knee-jerk reaction. The injured party often thinks about financial compensation before they have even had a chance to assess their physical injuries! Unfortunately accidents resulting in serious physical injury are frequent and substantial damages may be involved. This article outlines two reasons why the use of trusts for personal injury damages may be attractive and the potential tax consequences.

Richard Curtis's article 'Black and White' (see Taxation 30 September 2004 page 673) addressed a particular issue involving trusts for disabled persons within IHTA 1984 s 89. In some cases...

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