Will my personal injury settlement effect my Social Security and Medicaid Benefits?
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A personal injury claimant, who suffered from a previous impairment resulting in an award of Social Security and Medicaid Benefits, may risk the loss of SSI and Medicaid Benefits upon the receipt of settlement funds or funds from a jury of verdict as a result of his or her personal injury claim.
Under applicable federal or state laws and regulations, a personal injury claimant's direct receipt of net proceeds from a settlement or verdict would more than likely disqualify the recipient from the benefits as those would be considered a "countable resource" pursuant to 40 USC § 1396(b)(3). Fortunately, federal law authorizes the establishment of a trust arrangement for such situations that when properly created, funded and managed would preclude the assets in such a trust from being considered a "countable resource". Such a trust arrangement is commonly referred to as a "Special Needs Trust". For instance, the lawyers at SMITH, WELCH, WEBB & WHITE are currently in the process of creating a Special Needs Trust for an SSI and Medicaid beneficiary who was injured in a collision with an eighteen-wheeler on Interstate-75 between McDonough and Stockbridge in Henry County, Georgia. The client suffered from severe and catastrophic injuries from the tractor trailer collision in addition to her pre-existing medical condition. The trust will serve both to protect her SSI and Medicaid benefits, as well as any proceeds after settlement. The lawyers at Smith, Welch, Webb & White provide free consultations for personal injury clients.
Posted by John P. Webb
John P. Webb
John Webb specializes in personal injury: car accidents, tractor trailer litigation, and has appeared as a guest commentator, providing legal opinions for CNN, Fox News and MSNBC. His office is in Stockbridge, Georgia.