Legal Question in Social Security Law in Pennsylvania

My fathers gets social security disability, he recently won a law case for a medicine related thing, and got a settelment of about 12,000. Now there telling them if he takes the money his disability will be cut or even taken away. Can they do this and is there any way around it?


Asked on 10/29/11, 9:10 am

1 Answer from Attorneys

Terence Sean McGraw Warren & McGraw, LLC

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.

This answer to your legal inquiry is based upon the limited facts stated in your question. Accurate legal advice is based upon an exchange between a lawyer and a client. The lawyer can then ask about other facts that may change or confirm the answer. Without that exchange, this reply should be considered limited in value. You should rely on this answer only at your own risk. Direct consultation with a lawyer is always recommended. Answering your question does not create an attorney-client relationship.

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Answered on 10/29/11, 11:01 am


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