You may already receive Social Security Insurance (SSI) benefits because you have limited income and resources as an adult 65 or older, blind, or disabled. But what may cause you to struggle more both financially and physically is if you are made the victim of a personal injury accident. Here, your monthly benefits payments may not be enough to pay for your damages. As a result, you may carefully consider pursuing legal action to cover these additional costs. However, please continue reading to learn whether you should pursue a personal injury settlement while collecting SSI benefits and how an experienced New Jersey SSDI benefits lawyer at The Law Offices of Sheryl Gandel Mazur can help you maximize the financial payout you deserve.
Should I accept a personal injury settlement offer if I receive SSI benefits?
Without a doubt, the third party responsible for your personal injury accident and your subsequent injuries and damages should be held accountable. That said, while we do encourage you to fight for justice, we would be remiss if we did not inform you of its potential consequences to your SSI benefits.
Specifically, the Social Security Administration (SSA) uses a means-test program to determine whether your income and resources fall below its enforced limits for eligibility. So, when you finally receive your personal injury settlement, your income and resources may spike, and you may be temporarily disqualified from collecting SSI benefits.
This is until you possibly spend this resource down to pay off your outstanding medical bills, pay to repair your damaged property, purchase replacements for your damaged property, etc. Even then, though, you may have more funds left over than anticipated, still causing your countable monthly income to be too much. This is given that you were also compensated for non-economic damages, such as your pain and suffering.
Lastly, it is worth mentioning that your spouse’s entering a personal injury settlement offer may consequently affect your SSI eligibility. Also, whether it be you or your spouse as the plaintiff, your current Medicaid benefits may be compromised.
How can I protect my eligibility for SSI benefits while pursuing legal action?
You should not have to reduce or terminate your SSI benefits simply because you were wrongfully made the victim of a personal injury accident. Rather, there are legal strategies you may adopt to maintain both income sources simultaneously.
One popular method is by establishing a special needs trust. You may fund this trust with your personal injury settlement and transfer ownership rights to your appointed trustee. Since you cannot directly manage and use the trust’s funds, the SSA may no longer consider it part of your countable income. In other words, you may remain below its enforced income and resources limit for SSI eligibility.
In the end, if you are ready to fight for the financial compensation to which you are entitled, please retain the services of a skilled New Jersey SSDI benefits lawyer. Our team at The Law Offices of Sheryl Gandel Mazur awaits your phone call.
