It depends on what kind of social security he is receiving. Social Security Disability (SSD), paid on the basis of one's work record would not be affected by a settlement. If your father did not have much of a work record (lots of disability, mostly worked for cash, etc.), or his disability occurred after his SSD coverage ran out, he would be collecting Supplemental Security Income (SSI). SSI is a needs based benefit (like Welfare) where one does not qualify if they have too much money or too many assets.

If that is the case, the settlement can be put into a "special needs trust." That kind of trust prevents the settlement proceeds from affecting your father's SSI entitlement. It does restrict your father's use of the settlement money somewhat but it prevents disqualification from SSI.

There are other strategiesto use that do not avoid some impact but drastically minimize the impact. If the lawyer handling the settlement does not know these techniques, your father (or his lawyer) should consult with a SS lawyer.

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