Trusts created by recipients of personal injury awards are going to become the subject of a new tax regime that will cause confusion and could prove costly, often to the more vulnerable and poorer sections of our society.
The personal injury award (PIA) was introduced under the Income Support (General) Regulations (Northern Ireland) in 1987. The purpose was to protect those recipients of PIAs who were penalised by having state benefits reduced or withdrawn as a consequence of receiving a cash settlement as a result of a serious injury, often one that prevented them from being gainfully employed.
