Disabled Persons Trust and CICA payment

My client is looking to set up a Disabled Persons Discretionary Trust with two forthcoming CICA payments (one award to be decided). So far, these are within the NRB.

The client satisfies the definition of a disabled person and a s.89/s.89A trust seems to satisfy their requirements.

I am cautious of deliberate deprivation of assets in the transfer of the CICA payment into the trust. There is no specific personal injury trust set up to receive the payment in the first instance, although I am not all familiar with the terms of a CICA payment in this respect and whether this would automatically be deemed the case.

Would the trust need to be set up with an initial small payment (i.e. £10) before the payment is released directly into the trust?

Who would be the most appropriate ‘settlor’ in these circumstances. I am considering this to be the disabled person under a s.89A but would be grateful for any other considerations.

Capacity is not an issue, there is an attorney in any event if that’s helpful.

Michelle Crump
Woollcombe Yonge