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Thread: How does a settlement affect benefits?

  1. #1

    How does a settlement affect benefits?

    My son just received a small settlement. After the lawyer, Medicaid and our former health insurance company (which he no longer has) took their cut, he was left with only $16,000. We planned to buy a FES bike which would take all of that money. We are worried that he will lose his SSI and possibly Medicaid benefits (insurance, waiver program etc.) now. Does anyone have any experience with this, or any advice?

  2. #2
    Get a lawyer and ask about "special needs trusts". Ideally you should do this before he receives the cash in hand. My opinion.
    Aerodynamically, the bumble bee shouldn't be able to fly, but the bumble bee doesn't know that, so it goes on flying anyways--Mary Kay Ash

  3. #3
    Senior Member ColonusFan's Avatar
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    For the sake of your son

    Please DO NOT plow the remainder funds into an FES bike. If your son is a SSI beneficiary, settlement money will be considered as an asset and more than likely will impact benefits. Depending on your son's age he might be able to qualify for SSDI under your own FICA. You need to find a GOOD local advocate that can guide you through the process and possibilities. For the lawyer NOT giving your son council there is a huge problem.

    With such little knowledge regarding your son's age and your own SSA benefit there is very little any one on the posts can guide you with. In short unless money was segregated prior to settlement then yes, unfortunately settlement might impact SSI benefits.

  4. #4
    Quote Originally Posted by dsmartin View Post
    My son just received a small settlement. After the lawyer, Medicaid and our former health insurance company (which he no longer has) took their cut, he was left with only $16,000. We planned to buy a FES bike which would take all of that money. We are worried that he will lose his SSI and possibly Medicaid benefits (insurance, waiver program etc.) now. Does anyone have any experience with this, or any advice?
    Contact Community Trust Fund Management. here is a link to their website. http://www.cfmf.org/

  5. #5
    Senior Member anban's Avatar
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    A special needs trust would shelter the $ from SSA if you aren't planning on spending it. You need to let Social Security know about the money, and they may withhold SSI if the money isn't spent in the month it's received. But that's better than getting slapped with a backpayment.

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