Facing a life-changing injury or illness can be overwhelming; physically, emotionally, and financially. For many, the impact extends beyond the individual, to their entire family, and in some cases, there’s the added complexity of navigating litigation.
With the recent abolition of the Wards of Court system for adults, managing compensation to ensure it meets long-term financial needs can be increasingly complex. Families now often bear the responsibility for making investment decisions and safeguarding assets for their loved ones.
We have established a dedicated Compensation Awards Team which is focused on supporting individuals and their families. We work with clients who have received compensation as a result of medical negligence and other events, each with their own varying financial needs and care requirements. We also work with families where a loved one is transitioning from the Ward of Court system.
Our team is made up of investment and tax experts equipped with the knowledge to deliver the best outcome for individuals and their families, and our senior advisors are Certified Financial PlannersTM.
Our engagement goes far beyond an assessment of financial needs. We provide a high-touch, personalised service to understand the individual's particular circumstances and deliver the best outcomes for them.
In each case, two financial advisors are assigned to support our clients to deliver consistency of service over time.
We work with individuals and their decision-making supporters to give them the reassurance and confidence that they need to manage their long-term financial future.
Large compensation awards require meticulous financial planning to ensure that they meet the recipient's financial needs throughout their life. Our team develops comprehensive financial plans tailored to each individual's unique circumstances, ensuring that the funds are managed effectively to meet both immediate and long-term needs.
Financial planning is a continuous long-term process. As people's lives and circumstances change, so too will their financial goals. We continually track clients' plans over time, monitoring external factors such as market fluctuations and interest rate changes, as well as any changes in personal circumstances, adjusting as needed. Our proactive approach ensures our clients' financial strategies stay on course.
We discuss each proposal with clients in detail to ensure it is the right strategy for their circumstances, making adjustments where needed. Investment solutions may include fund-based options and segregated model portfolios, with the recommended approach guided by the individual’s tax status.
The first element of the strategy is to establish a cash reserve to provide regular income as required in the short to medium term. This amount will typically be sufficient to meet three to five year’s outgoings.
Where additional funds are available, they can provide an added layer of financial security. With a longer investment horizon, a broader range of investment options may also be considered to support growth.
Many individuals who have received a compensation award, or who have been made a Ward of Court, may not be liable for tax on their investment returns. Where certain conditions are met, income and capital gains arising from the investment of a compensation award may qualify for exemption under Section 189. However, this exemption does not apply in all cases, and the nature of the investments can still give rise to tax considerations. For those who qualify for the Section 189 exemption, portfolios can be structured in a tax-efficient manner, taking into account applicable rules and considerations. As appropriate, tax specialists may work with individuals, their decision-making supporters, and their advisors or trustees.
We operate a transparent fee structure, with the Davy Management Fee rate reducing as the combined value of assets under management increases. Davy Compensation Awards clients qualify for discounted rates across all asset levels, in line with our institutional and charitable client framework. We believe this approach can offer clear value to individuals seeking advice on assets in excess of €1 million.
For almost 100 years, we have been helping Irish individuals, families and businesses safeguard and grow their assets. Over this time, we have developed the tools, expertise and solutions to deliver exceptional outcomes for our clients.
Our Compensation Awards Team is supported by an investment team of 40 professionals, a financial planning team of 30 professionals and has access to the broad expertise of Davy's team of over 900 in developing solutions to meet the unique needs of our clients. This includes a dedicated team of pensions, tax and protection specialists who collaborate closely with clients' tax and legal advisors.
As a member of the Bank of Ireland group, Davy can provide introductions to dedicated advisors within Bank of Ireland who can provide assistance to our clients with their everyday banking and lending needs, should they require it.
If you or a family member is in receipt of a compensation award and would like to speak to one of our advisors, why not book a no-obligation consultation.
Director, Tax Specialist
Private Clients, Financial Planning
Director, Tax Lead
Private Clients, Financial Planning
Associate Director
Private Clients, Financial Planning
Senior Associate
Private Clients, Financial Planning
WARNING: The information on this page is not a recommendation or investment research. It does not purport to be financial advice and does not take into account the investment objectives, knowledge and experience or financial situation of any particular person. Investors should determine whether an investment is appropriate to their own personal circumstances.
WARNING: Tax information provided/discussed on this page is provided for Irish Resident investors only by way of general guidance only and is neither exhaustive nor definitive and is subject to change without notice, including potentially retrospectively. It is based on Davy’s understanding of Irish Tax legislation, provided by Revenue as at 02/05/2025. It is not a substitute for professional tax advice. Please note that Davy does not provide tax advice. You should consult your own tax advisor about the rules that apply in your individual circumstances.
