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Would A Lawsuit Settlement Affect My Benefits Even If I Sign The Money Over To My Mother?

I'm currently receiving both Snap,social security and SSI. I use this income for monthly rent and food. Last year I was in a car accident and lawsuit was filed due to injury etc. This year they finally settled and giving me 20,000 or so but still need to deduct medical / attorney's fees. However I owe money to my mom fully for helping me with other bills my monthly check didn't cover and clothing etc. I'm worried because the check is under my name they will assume I'm taking in the money which I'm going to legally sign over to my mom for helping me with those extras that my monthly ssi / social income didn't cover. Would an reciept and document notarized stating I'm signing over the $ to pay back debt be enough so SSI /SS doesn't suspend my benefits? I really need to pay her back but afraid they'll consider it a gift / donation. I'll be screwed either way. Just want legal advice.

Hi,

I'm not a lawyer, so I can't offer legal advice. A financial settlement like you expect to receive could affect your Supplemental Security Income (SSI) and SNAP eligibility, since they are both needs based benefits. The settlement payment would not, however, affect your Social Security benefits.

There are both income and resource limits involved in determining SSI eligibility, and my guess is that your receipt of the settlement will make you ineligible for payments for at least some period of time even if you use the funds to repay a debt. You'll probably need to check with an SSI specialist at Social Security to be sure. I don't know much about the SNAP program, so I can't help you with that.

Best, Jerry

Category: 
Posted: 
Aug 29 2017 - 11:47am
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