Lawsuits And Ssi Checks: Can They Collect?

If you are a recipient of Supplemental Security Income (SSI) and are thinking about filing a personal injury lawsuit, it is important to note that any settlement funds received may impact your SSI benefits. SSI is a needs-based program, and there is a limit on the amount of money you can have in cash, bank accounts, or other resources. This means that a lawsuit settlement could push your total assets above the allowed limit, affecting your SSI eligibility. However, there are steps you can take to mitigate this impact, such as establishing a special needs trust or consulting with an attorney experienced in SSI benefits to explore your options. It is crucial to be transparent with your personal injury attorney about your SSI status to ensure your benefits are protected.

Can a lawsuit collect your SSI check?

Lawsuit money can affect SSI benefits

If you are a recipient of Supplemental Security Income (SSI) and/or Medicaid, any money you receive from a lawsuit may affect your benefits. SSI and Medicaid have a limit on the amount of money you can have in cash or in a bank account. This limit is $2,000 for one person or $3,000 for a couple, and cash and bank accounts are counted towards this limit. Therefore, if you receive a large sum of money from a lawsuit, it could push you over the resource limit and affect your SSI benefits.

It is important to note that not all resources count towards the overall resource limit. For example, you can set aside up to $2,000 for a single person or $3,000 for a married couple in non-exempt resources such as savings or checking accounts. Additionally, physical property can also count towards the resource limit if it is not your home and can easily be sold.

If you are thinking about bringing a personal injury lawsuit and receive SSI benefits, it is important to consult with an attorney to understand how the settlement funds may affect your benefits. You can also take steps to protect your SSI benefits, such as establishing a special needs trust.

In some cases, a successful lawsuit may not impact your SSI benefits. For example, if you receive Social Security Disability Insurance (SSDI) benefits, a personal injury settlement will not affect your benefits as SSDI is an "earned benefit" program based on your participation in the system and not on your income or assets.

SSI is a needs-based program

Supplemental Security Income (SSI) is a needs-based program that provides monthly benefits to people with limited income and resources. To be eligible for SSI, individuals must be aged 65 or older, blind, or have a disability. The medical standard for disability is based on the severity of the condition, with financial need not considered during the eligibility process for those aged 18 or older. For children, however, there is a separate definition of disability under SSI.

SSI is available to US citizens, non-citizens in certain alien classifications, and citizens of the Compact of Free Association States (CFA). These include the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau, along with their spouses and children under 21. To receive SSI, individuals must reside in one of the 50 states, the District of Columbia, or the Northern Mariana Islands. They must also not be absent from these locations for a full calendar month or 30 consecutive days or more. Additionally, SSI recipients cannot be confined to an institution, such as a hospital or prison, at the government's expense.

SSI has limits on the amount of money an individual can possess in cash or in a bank account, with a resource limit of $2,000 for a single person and $3,000 for a married couple. This limit includes cash, bank accounts, and certain non-exempt resources, such as savings and checking accounts. Physical property, if easily sellable, can also count towards this limit. It is important to note that SSI recipients may also qualify for additional benefits, such as Medicaid, Supplemental Nutrition Assistance (SNAP), and food assistance.

SSI benefit limits

In the United States, Supplemental Security Income (SSI) is a means-tested programme intended to support individuals and families with limited income and resources. To be eligible for SSI, applicants must not earn more than a specified amount each month, with the limit currently set at $2,019 for individuals. This limit increases for couples and parents applying for children. For instance, parents applying for a child can have a monthly income of up to $4,019. Additionally, the resource limit for SSI is generally $2,000 for individuals and $3,000 for couples, which includes cash, bank accounts, and certain physical properties.

SSI benefits are calculated by subtracting an individual's "countable income" from the SSI Federal benefit rate. As a result, higher countable income leads to lower SSI benefits, and individuals with countable income above the allowable limit are ineligible for SSI. Countable income includes earned income, such as wages and net earnings from self-employment, and unearned income, like Social Security benefits, pensions, and unemployment benefits. However, not all income is considered countable; for example, income set aside under a Plan to Achieve Self-Support (PASS) is excluded from the SSI program's income calculation.

It is important to note that certain circumstances can impact SSI eligibility and benefit amounts. For instance, individuals with unsatisfied felony or arrest warrants are ineligible for SSI benefits during those months and will not receive retroactive payments for that period. Similarly, individuals incarcerated in a federal, state, or local government institution for a full calendar month are generally ineligible for SSI during that time, except in specific cases, such as residence in a public emergency shelter.

Regarding the impact of lawsuit money on SSI, it can affect benefits since SSI has limits on the amount of cash and resources an individual can possess. If an individual receiving SSI wins a significant amount of money in a lawsuit, it could exceed the resource limit and affect their eligibility and benefit amount. Therefore, it is advisable to seek specific legal advice in such situations to understand the potential implications on SSI benefits.

SSI and SSDI benefits

If you receive Social Security benefits and are thinking of bringing a personal injury lawsuit, it is important to know that any settlement funds received from a lawsuit may affect your benefits. The two largest federal programs that provide assistance to people with disabilities are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

SSI is a needs-based program, and as such, any settlement funds could affect your SSI benefits. You must report all income, assets, and other aid, including money recovered from a personal injury lawsuit. SSI and Medicaid have a limit on how much money you can have in cash or in a bank account. In most situations, the resource limit for SSI and Medicaid is $2,000 for one person or $3,000 for a couple.

On the other hand, SSDI is an entitlement program based on your participation in the system for a number of years, and so SSDI benefits are not dependent on your income. If you collect both SSDI and SSI benefits, a personal injury settlement could affect your overall payment. However, a personal injury settlement will have no impact on your SSDI benefit, and you do not need to take any additional steps to continue receiving your full SSDI monthly payments.

To best protect your benefits, it is important to tell your personal injury attorney if you receive Social Security benefits, especially SSI benefits. You can also take steps to lessen the impact and protect your SSI benefits while pursuing a personal injury lawsuit, such as establishing a special needs trust.

SSI and Medicare benefits

If you receive SSI benefits and are thinking about bringing a personal injury lawsuit, it is important to note that any settlement funds received from the lawsuit may affect your SSI benefits. SSI, or Supplemental Security Income, is a needs-based program with a limit on the amount of money you can have in cash, bank accounts, or certain other resources. This limit is $2,000 for a single person and $3,000 for a married couple. Cash and bank accounts are counted towards this resource limit, as well as some physical property.

It is important to consult with an attorney experienced in SSI benefits to fully understand your options and take steps to protect your benefits. One possible option is to establish a special needs trust. Additionally, you must report all income, assets, and other aid, including money recovered from a personal injury lawsuit.

It is worth noting that if you receive Social Security Disability Insurance (SSDI) benefits in addition to SSI, a personal injury settlement will not impact your SSDI benefit. SSDI is an earned benefit program based on your participation in the system and is not dependent on your income.

While this information provides a general overview, it is always best to seek specific legal advice for your particular situation, especially as laws can vary by state and individual circumstances.

Frequently asked questions