Does a Personal Injury Settlement Affect SSDI
Generally, personal injury settlements do not affect Social Security Disability Insurance (SSDI) benefits. Your eligibility for SSDI depends on your past work history. However, a settlement could affect your eligibility for Supplemental Security Income (SSI). SSI depends on your financial resources, which a personal injury settlement could increase. The Law Offices of Wolf & Pravato can evaluate your legal options during a free case review. Call (954) 633-8270 to begin.
What Are SSDI and SSI? Are They the Same?
SSDI is a program offered through the Social Security Administration (SSA). It offers benefits for disabled people. Your eligibility depends on your work history, including how many “work credits” you have.
SSI does not depend on your work history. It depends on your countable resources. You cannot make more than a certain amount and still qualify for SSI.
Because SSDI depends on your work history, you can keep receiving benefits even if you’ve received compensation through a personal injury claim. Matters change if you receive SSI benefits; you generally have 10 days to report your settlement to the SSA. From there, it may alter or terminate your benefits, depending on the settlement’s amount.
You Can Partner with a Florida Lawyer on Your Injury Case
If you receive SSI and you recover compensation, you may have concerns about losing your benefits. Our lawyers can help you maintain your SSI benefits and the compensation you need. We can do this by creating a special-needs trust.
A special-needs trust would separate your injury settlement from your countable resources. We would assign a trustee to the trust who would use those funds to pay for your injury-related losses.
Yet, setting up a special-needs trust is harder than it sounds. You could lose SSI benefits even with a simple mishap. Yet, when you entrust your case to our team, we can help create this trust and explain your options.
Your Injury Settlement Affects More Than Your SSI Benefits
Recovering a personal injury settlement affects more than your SSI eligibility. It can also affect:
- Divorce Proceedings. Some aspects of your injury settlement are marital property. This means you could owe your spouse some of your settlement––like money paid for your medical treatment.
- Alimony. The divorce court will create an alimony agreement based on your financial resources. It may consider your injury settlement when drafting an arrangement.
- Child Support. Like alimony, the court will consider your child’s needs when determining an agreement. If your settlement increases your financial resources, you could pay more money each month. Alternatively, if your injury affects your earning power, you could owe less depending on your finances.
- Medicaid. You cannot make more than a certain amount and still receive Medicaid. If you receive Medicaid and an injury settlement, your lawyer may create a special-needs trust. This would prevent you from losing your health coverage.
- Taxes. The government will not tax many aspects of your injury settlement. However, it can if you received punitive damages.
These are just some elements that your injury settlement can affect. You can learn more when you connect with our firm.
Partner with a Lawyer on Your Injury Case
Recovering compensation is already a challenge. Learning how a settlement affects your Social Security benefits is another matter entirely. Partnering with a personal injury lawyer Fort Lauderdale does more than put your mind at ease. Your lawyer can:
Evaluate Your Eligibility for Damages
Did you recently suffer harm due to negligence? If so, you should consider your legal options. A Fort Myers personal injury lawyer can evaluate your situation and pursue compensation for your losses. They can also identify the at-fault and liable parties to pursue what you need.
Examine Your Settlement’s Effect on Your Benefits
As noted, recovering a settlement could affect various aspects of your life including your eligibility for Social Security benefits. We will listen to your story, evaluate your options, and implement a plan of action from there.
Pursue What You Need
Your injury settlement should account for your injury-related losses, even those without concrete dollar values. Your settlement could account for:
- Medical bills, including medications and hospitalization
- Lost wages and other employment-related benefits
- Property damage expenses, including repair or replacement costs
- Pain and suffering
- Scarring and disfigurement
- Funeral expenses
- Various out-of-pocket costs, such as childcare expenses
We will review your injury-related documentation to calculate what you need. We can also consult with field experts, witnesses, and other professionals to learn more.
Help You on a Contingency-Fee Basis
Our team doesn’t charge hourly rates or retainers when managing your case. We offer our help on a contingency-fee basis, so you pay nothing out of pocket for our services.
Begin Your Free Case Review with the Law Offices of Wolf & Pravato
If you’re concerned about whether your injury settlement will affect your SSDI benefits, our Florida personal injury lawyer stands ready to help. The Law Offices of Wolf & Pravato serves injured people throughout South Florida. To learn more about what our team can do for you, Call (954) 633-8270. We can answer your questions about settlements and Social Security distribution.