Injury and Compensation trusts are usually established under the terms of a Court Order or Settlement, where funds have been paid to an individual in compensation for a personal injury or as a victim of crime.

Often these funds will be held in trust for the injured individual who is the beneficiary of the funds.

All expenditure from the trust must be for the benefit of the beneficiary. When a request for funds is made, the trustee should consider:

• the amount of funds in the trust and how long the trust funds need to last
• any specific rules about what purposes the funds may be used for, as outlined in the trust deed or Court Order
• the needs of the beneficiary - e.g funds may be released for medical expenses, accommodation, education, recreation or respite.

It is the trustee’s responsibility to make sure payments made from the trust benefit the beneficiary - this could be the medical needs of beneficiaries who have a disability or other special health needs.