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SSI, SSDI, and Your Settlement

Social Security, Social Security Disability Income (SSDI), and Supplemental Security Income (SSI) are distinct benefits with different purposes. Compensation from your personal injury lawsuit may affect SSI, but should not affect the others. 

Social Security

Social Security payments are distributed to individuals who, over the course of their working careers, have paid into the federal Social Security system through FICA taxes. Since you have essentially already earned your Social Security payments after years of working and paying into the system, your settlement will not affect your Social Security.

Social Security Disability Income (SSDI)

SSDI is similar. SSDI is awarded to disabled individuals who have worked and contributed to the Social Security system. It may also be awarded to a disabled child or spouse of a person who has paid into the Social Security system. Like Social Security, SSDI is considered an entitlement benefit; you are entitled to it because you earned it. Therefore, it is not affected by your settlement. 

Supplemental Security Income (SSI)

SSI, however, is a supplemental income program providing financial assistance to low-income disabled, blind, and aged individuals. It is considered “needs-based” and there are financial limits that need to be met and maintained in order to continue to receive the financial supplement.

SSI has income limits as well as asset (or resource) limits. Income refers to money that you earn. Assets are valuable items, such as cash, money in the bank, or a second car. Items of value that are exempted from the resource limit include the home you’re living in (and its land), one vehicle per household, most personal belongings and household goods, and property that you can’t use or sell. The 2024 asset value limit for a single person is $2,000 and for a married person is $3,000.

Your settlement would not be considered income, it would be considered an asset. Therefore, a cash settlement would undoubtedly exceed the limit allowable to continue to receive SSI. Fortunately, a special needs trust can be set up to allow you to receive the settlement while maintaining your SSI eligibility. 

Special Needs Trust

A special needs trust has a number of stipulations, so it’s not the right choice for everyone. There are strict rules regarding the use of the funds and the ability or inability to dissolve the fund once it is established. Because of these limitations, it’s best to discuss your settlement and SSI eligibility with a knowledgeable Florida attorney.

As a Florida personal injury lawyer, I am committed to helping Florida residents throughout the state receive just and fair compensation to help them cope with the injuries they have sustained through someone else’s negligence. Contact me at (954) 448-7288  for a free consultation to see how I can help you. 

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