I have a client who was on IS and had some Criminal Injuries compensation paid. The first payment was ignored for 52 weeks as per para 12 (A)(a) Sch 10 of the IS regs but as it was not put into a trust or spent it put the cl. over the capital limit as soon as the 52 weeks expired.

About six months after that the cl. recieved the balance of the compensation which has to be counted as capital immediately under para b) of the above regs.

If the cl. puts this subsequent payment into (or use it to create) a trust fund will it be ignored as capital and immune from accusations of deprivation? The CPAG handbook says that a second payment of compensation is disregarded unless it is put into trust which would imply that it was possible to do this. Reg 12 just says that capital in a trust can be disregarded if it is 'derived from a payment made in consequence of any personal injury to the claimant...'

The commentary in Bonner et al also sems to imply that even though the first payment of compensation is only ignored for 52 weeks it may be possible for that payment to be put into a trust after the 52 weeks has expired and then be ignored as capital/not counted as deprivation. Reg51 (1) of the IS regs doesn't seem to set any time limits on putting such payments into trusts.

any thoughts /previous experineces of this would be gratefully recieved

the PI trust should have been set up for the client before the CICA claim was settled, or within the first 52 weeks thereof, and it is now too late to do it.
was the client in receipt of professional advice for his/her CICA claim? if so, client shoudl seek separate professional advice re a prof neg claim against the first advisor....would be bang to rights as a claim against a solicitor for failing to advise re that.
if the advice was given and not acted on, then client's own fault, of course...