16th June 2021
Ian Gunn looks at the Supreme Court Judgment in Mrs Claire Tomlinson-Blake’s case against her employer, Mencap, which was handed down on 19th March 2021.
It is often necessary for interim payments to be held on client account. Sometimes this is to facilitate care and case management costs or to meet disbursements required during the course of litigation.
Some claimants have not had the financial experience in life to enable them to manage funds beyond a weekly allowance, and others in the early stages of recovery may simply be unable to manage their affairs in the short-term.
In such circumstances it can often be helpful for funds to be retained on client account with a manageable allowance forwarded to the claimant to meet their every day expenditure needs, and costs associated with the claim managed from client account.
However, Benefit regulations are clear on the point that funds held on client account are that of the claimant’s. Consequently, funds held on client account must be added to the claimant’s personal savings and, if exceeding the relevant capital threshold, be reported to the appropriate benefit department so that entitlements can be reduced accordingly.
The solution is simple. By establishing a Personal Injury Trust with a nominal amount from the interim payment, the trustees may simply make a declaration that funds on client account are being held on behalf of the trustees. This, in turn, will ensure that the funds are to be disregarded in relation to any means-tested support in payment.
Ian Gunn considers whether cash is still ‘real money’.
Ian Gunn considers the investigation of Dame Elizabeth Gloster into London Capital & Finance plc (“LCF”), a failed financial firm, and into the Financial Conduct Authority’s regulation of it. Her report was presented to Parliament at the end of last year.
Ian Gunn considers whether the Retail Prices Index finally to be laid to rest
Investors would do well to bear in mind these words from Gilbert & Sullivan’s HMS Pinafore, since things are seldom what they seem in financial markets. Ian Gunn considers a couple of examples, past and present.
Richard Cropper confirms that the feared post-Brexit risks have gone away.
Richard Cropper notes the positive impact of the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2020