Will Personal Injury Settlements Affect SSI?
Suppose you receive Social Security benefits and are considering filing a personal injury case. In that case, you should talk with an attorney beforehand because receiving settlement cash from a lawsuit may influence your Social Security payments. Consult Turco Legal to learn more.
Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are the two major government programs that support persons with disabilities. While the Social Security Administration handles both programs, they differ in many ways.
What is SSDI?
Social Security Disability Insurance is an entitlement program that benefits you and certain family members if you have worked for a particular number of years, contributed to the system for a certain number of years, and have a medical condition that matches the program’s definition of disability. Social Security revenues finance the program.
What is SSI?
On the other hand, Supplemental Security Income is a needs-based program that benefits those with proven financial needs and medical issues that fulfill the program’s definition of disability. The program is supported by ordinary tax revenues rather than Social Security levies.
Will my personal injury lawsuit have an impact on my social security benefits?
Maybe, depending on the sort of benefits you get or will receive. Since SSI is a needs-based program, any settlement cash you receive may impact your SSI payments. All income, assets, and other aid, including money collected from a personal injury case, must be reported. However, you can mitigate this impact and maintain your SSI payments while pursuing a personal injury claim by establishing a special needs trust. Consult with an SSI benefits attorney to fully understand your choices.
SSDI benefits, on the other hand, are not based on your income because they are an entitlement program based on your involvement in the system for a specific number of years. If you get both SSDI and SSI payments, a personal injury settlement may impact your entire payout.
Government aid programs are crucial but difficult, and you must take all precautions to ensure you meet their standards. If you get Social Security payments, particularly SSI benefits, notify your personal injury attorney immediately.
Will my disability cause me to lose a personal injury lawsuit?
Receiving government disability benefits does not preclude you from filing a personal injury case or recovering compensation for your injuries. Any money you recover, however, may diminish your Social Security benefits. To better understand how to maintain your benefits, consult an expert attorney with a background in these matters.