Want to know if you can keep receiving your supplement income benefits after receiving your settlement money? Then this article is for you. Keep reading to learn about how settlement money can affect your ongoing government benefits.
Why would your government benefits be affected by a lawsuit settlement?
SSI benefits are “means tested.” That’s the legal language. In regular terms, your right to receive SSI benefits depends on your income and assets. The government sets a limit to how much money you can make on a monthly or annual basis and still qualify. There is also a limit on assets, which means the value of the things you own, such as a house, stocks, bonds, and other things that have financial value.
Which benefits are affected by settlements in Oklahoma?
You may lose your right to some government benefits if you receive money in a lawsuit settlement. Other programs will not be affected. It all depends on which program you are enrolled.
Social Security Disability Insurance (SSDI) will not be affected by a lawsuit settlement. The reason is that you acquired those benefits from working and paying taxes on your earned income.
However, Supplement Security Income (SSI) will be affected, and permanently or temporarily reduced. The reason is that SSI is a welfare program that is needs-based, and you are only considered to be in need of the program if you are under a certain asset/income limit.
According to the means test, if you own more than $2,000 in assets, you will not qualify. If you make more than $2,000 per month, you will also not qualify.
How to keep your SSI after a lawsuit settlement in Oklahoma
There is a way to receive your settlement money and keep receiving your monthly SSI benefits. The key is to create a Trust that is specially designed to protect your settlement money while also complying with state and federal law.
There are different names for this type of trust. We call it a “Special Needs Trust,” but there are many other names, such as a “First Party SNT” or a D4A Trust. The name is not important. You can actually name your trust however you want.
What you need to know is that setting up this type of trust requires an attorney with knowledge of the federal and state laws that apply to your government benefits program, as well as general knowledge and experience in creating trusts. In addition to handling Medicaid Asset-Protection Trusts, we also handle Special Needs Trusts for people receiving large settlements. Our Special Needs Trusts will protect your money AND allow you to keep receiving your government benefits.
Trusts are not just tools of the wealthy. They are tools of the financially savvy. Those who are smart enough to look for ways to keep their money will search out for lawyers who can set up these legal instruments. If you are one of these people, then you have found the right law firm.
Hire an Oklahoma City Attorney to set up a trust to protect your settlement money
If you are expecting to receive a large settlement, and you don’t want to lose your eligibility for SSI or Medicaid benefits, you should contact our office immediately. Do not wait, even if your lawsuit has not yet settled. It is important to get this type of planning started early.
If you have a personal injury lawyer working on your case, then let us know and we can work together with them to make sure you get to keep your settlement money.
Call our office at (405) 607-7799 or send us an email.