Disability benefits are vital to your financial support if you cannot work. Two types of disability benefits are available. Receiving a settlement for a Louisville personal injury after an accident may impact your disability benefits, depending on the type you receive. Multiple avenues may exist to protect your disability benefits from penalties after receiving an accident settlement in Kentucky.
The Social Security Administration (SSA) oversees two disability benefits programs. Social Security Disability Insurance (SSDI) is funded through taxes that employees and employers pay. Employees earn credits toward SSDI based on their work history. Eligibility for SSDI includes:
Because the SSA bases these benefits on work history and taxes you and your employer pay, any accident settlement you receive will likely not impact SSDI benefits.
The SSA offers another disability benefit to individuals who cannot work and have limited means. Social Security Income (SSI) is a needs-based program determined by your income and the resources you have, like property and savings accounts. Even a modest accident settlement in a Louisville accident can increase your available resources, impacting the amount of SSI you receive.
Receiving SSI requires you to meet reporting responsibilities. It is necessary to report a settlement for damages from the insurance company after a Louisville accident. Failing to do so can result in significant sanctions and penalties. A settlement structure may influence your reporting.
The type of settlement you receive and the settlement payment structure can determine its impact on SSI disability benefits. Establishing a special needs trust may allow you to use a settlement for expenses your SSI benefits do not cover. Your age when you receive an accident settlement affects funding of a special needs trust. Establishing a trust can be beneficial in numerous circumstances.
Creating an ABLE account, established by the Achieving a Better Life Experience (ABLE) Act of 2014, may allow you to protect an accident settlement. ABLE account funds may also cover qualifying disability expenses SSI does not pay for.
Creating a settlement payment structure that distributes your damages over time may allow you to receive payments that do not impact your SSI disability benefits. Structured payments may keep your income and resources below the necessary thresholds to qualify for the disability benefits you need. Other options may exist to protect disability benefits and receive the settlement you deserve for damages in a Louisville accident.
The SSI benefits you receive are crucial to your financial stability. Receiving a settlement in an accident can be pivotal in your recovery and access to any future medical care you may need.
Strategic planning can help you decide the most beneficial way to manage an accident settlement and preserve disability benefits. Call our law firm to discuss your Louisville accident settlement options if you suffer a personal injury that is not your fault. Planning can help you prevent costly errors.