Personal injury trusts versus deputyships

The two main options for holding and managing the affairs of a person without capacity are a deputyship and a personal injury trust. A deputyship has the benefits of greater financial protection and court oversight but many injured people and their families find a private trust arrangement to be more personal, accountable and responsive, especially where complex projects such as the purchase and adaptation of a property are involved. Many also find the psychological separation from the court system helpful after a long and traumatic litigation.

The court however has had concerns about the potential lack of oversight of personal injury trusts and the way that costs are charged. Under a deputyship, costs are subject to assessment by the Senior Court Costs Office, but under a trust, this is not generally the case unless specific provision is made.

In SM v HM, the court considered when it was appropriate to authorise the creation

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