When considering a lawsuit, many clients are worried about the impact a win might have on their Social Security Benefits. Each situation is different, but receiving a significant amount of money could affect your SSI, SSDI, or Social Security. It is important to talk toa personal injury lawyer that can handle these matters efficiently. There are petitions, filing requirements, and other guidelines that need to be met in order to prevent losing any benefits.
Proper LegalRepresentation Can Protect Social Security Benefits
Obtaining social security benefits is often a long and drawn out process that may involve a legal battle. The thought of losing this income can lead to great anxiety. Whether you will lose benefits comes down to the size of the compensation package you receive and how your attorney handles the paperwork. Generally, any settlement that you would get will have terms and conditions to consider. Therefore, it is important for your personal injury attorney to ensure that the terms of your settlement are written in a way that will not terminate your Social Security benefits.
Why SSI Is Most Impacted By Settlements?
SSI is a “needs based” program that is given to people whose income level is at or below the poverty line. When the resources or income of an individual exceeds the programs preset limits, this service will be suspended or terminated. It is important to consider that any amount of compensation received will likely not be equal to the amount of benefits lost. Those who receive SSI are eligible for free or reduce medical care, prescriptions, and other services. An ongoing medical problem can be quite costly when there are large out of pocket premiums. A personal injury law firm can explain what must be done to avoid any reduction or loss in these benefits. This program is essential for many to financially survive.
Understanding A Spend Down and Special Needs Trust
When entering into settlement negotiations, it is important to consider all avenues available. One option that you have is to do a spend down. This means that the settlement amount must be spent upon receipt. It can be used to pay bills, do home improvements, or purchase a car. Keep in mind, many make foolish decisions when they have a large lump sum amount of money to spend in such a short period of time. With this method, there is no consideration for the future and any financial needs that may arise. The other option is a special means trust. This trust is held by a third party and they oversee the spending aspects. You will get to keep your settlement and your SSI benefits. These trusts are set up for those who are disabled, either physically or mentally. The money held in trust is not considered income, and you cannot be penalized for having these funds.
Handling Your Injury Settlement Efficiently
Making decisions that impact your financial future is not always easy. You need legal assistance to help get you through any claim from beginning to end. David S. Kohm & Associates is a personal injury law firm ready to assist you during this difficult time. You cannot afford to have just anyone handle a case that affects your financial well-being. Our attorneys handle not only personal injury cases, but also handle all aspects of disability law. Our wealth of knowledge spans many decades. Having well versed legal representation is vital for a favorable outcome. We have 13 locations to serve our clients. Call today for a free consultation!
