How a Personal Injury Settlement Affects Disability Claims
Social Security programs like Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) have different eligibility requirements for different purposes. Personal injury settlements will uniquely affect the two programs. SSDI is an earned benefit through tax contributions, while the SSI program is needs-based, where income must fall within a defined poverty range.
Given the complex nature of personal injury settlements and disability claims, consider consulting with your disability attorney. They can provide specific advice regarding your circumstances and the laws governing your state.
An attorney with expertise in special needs planning personal injury law can help in evaluating the following:
- Income and Asset Limitations
- Impact on Medical Evidence
- Coordination of Benefits
- Insurance Offsets
Legal solutions are available that can help you avoid the loss of SSI benefits. For example, with the help of an attorney, you may be able to transfer personal injury settlement funds into a special needs trust (SNT). A first-party SNT is a legal arrangement that can hold your settlement funds for your benefit. This legal arrangement then allows you to qualify for government benefits such as SSI or Medicaid.
