If you receive Social Security Disability Insurance benefits, receiving a personal injury settlement may affect your ability to continue getting SSDI payments. It’s important to discuss this consideration with your lawyer as you negotiate your settlement. At DWK Law, you can trust a compassionate Orlando personal injury attorney to protect your interests and help you retain your benefits.
Why would a personal injury settlement affect my Social Security benefits?
The Social Security Administration (SSA) manages the SSDI and Supplemental Security Income (SSI) programs. Unfortunately, receiving a personal injury settlement can affect SSI benefits as well as SSDI if the amount means you suddenly have too much income and assets, putting you outside the strictly defined criteria. These criteria vary slightly between SSDI and SSI.
If you receive SSDI benefits, you can earn no more than $1,620 per month (or $2,700 if you are legally blind). For SSI eligibility, you can own no more than $2,000 ($3,000 for couples) in assets and resources. Personal injury settlement funds are paid in either a lump sum payment or through a structured payment plan, potentially causing you to have too much in resources for SSI or temporarily boosting your monthly income past the SSDI limit with a payment plan.
Are there legal solutions to avoid loss of my SSI or SSDI benefits after winning a personal injury case?
You deserve your benefits, and you also deserve the settlement paid when you held someone accountable for hurting you through their negligent actions. Your attorney can help you investigate options such as transferring your settlement funds into a special account.
By using a special needs trust (SNT), you can allow the trust to hold your personal injury settlement funds as a legal entity separate from yourself. You’ll need to assign someone to be the trustee and make yourself the beneficiary. These trusts have to be irrevocable, which means you can’t end them and take the money back.
You will also need to carefully consider the terms of the trust so it doesn’t pay too much each month to affect your Social Security Disability benefits or loss of SSI benefits. Done properly, an SNT can protect your settlement without jeopardizing SSDI, SSI, and Medicaid payments. It’s essential to consult an experienced attorney with a background in many fields and who can work with a financial planning expert to help you create an SNT specific to your needs.
How do I maintain my proof of disability after winning a personal injury settlement?
You might be concerned that winning a personal injury case after a slip-and-fall or car accident could make the SSA feel you are no longer disabled. The truth is that these accidents often make existing disabilities even worse, and you are still in need of government program benefits. One of the ways your attorney can help you is by collecting and presenting vital evidence from your case to demonstrate your continued need for SSI or SSDI payments.
For example, your lawyer can submit medical records, physician statements, and treatment programs as proof that you are still or more disabled. They can also help you coordinate your benefits so you are not removed from any necessary programs. This is vital when your settlement involves insurance payouts, which could lower your benefits for a certain amount of time.
What if I haven’t started my personal injury claim and already receive Social Security benefits?
If you are already receiving SSDI, SSI, or Medicaid payments and are involved in a personal injury, you may want to speak with an attorney to decide whether you should pursue a lawsuit. Those who have significant benefit payments may want to consider the potential settlement amount and how it could affect their eligibility. In some cases, such as a minor car accident, the payout could be more trouble than it’s worth if it upsets your SSA benefits.
Each case is unique, and your personal injury attorney can help you assess your options during a free consultation. Contact DWK Law today by calling (407) 244-3000 or through our online form to speak with an Orlando personal injury lawyer today.
