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Forum
-> Household Management
-> Finances
amother
Slateblue
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Sun, Jul 16 2017, 4:53 pm
I've become disabled and am legit unable to work at least til I'm rehabilitated sufficiently, if and when that happens.
Meantime, I'm on programs and it's helping me survive somewhat. Tzedaka fills in somewhat. I still don't make ends meet and often charge my c.c to pay for necessities for my family ka"h. I've amassed a pretty penny in c.c debt. Any potential settlement would probably just about pay off my c.c debt.
The lawyer who's handling my case said the other party wants to settle. When he told me the amount of the settlement I turned it down because it is a drop in the bucket . I am ok to go to trial if need be.
I got to thinking about how to handle any possible settlement or judgement. If its considered income I may no longer qualify for the programs, yet the settlement amount would barely cover the cost of continued rehabilitative therapies, etc. while having to pay rent, food, etc. Or, I would like to use it to pay off my c.c debt, much but not all of it comprised of charges related to rehabilitative services.
Is there a way to protect any settlement amount, so as not to be disqualified from programs? Of course, if a judgment or settlement amount was decent enough to keep me afloat, I'd be ok to get off the programs. But I want to be prepared for the possibility that I may wind up with a drop in the bucket. Am I being clear about my question?
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amother
Firebrick
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Sun, Jul 16 2017, 5:00 pm
The settlement relates to the injury that has caused your disability ? I'm trying to understand
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amother
Slateblue
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Sun, Jul 16 2017, 5:01 pm
amother wrote: | The settlement relates to the injury that has caused your disability ? I'm trying to understand |
Yes
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amother
Firebrick
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Sun, Jul 16 2017, 5:06 pm
https://www.irs.gov/pub/irs-pdf/p4345.pdf
did you read this? Are you certain that the calculation for programs would include the settlement as 'income'? Can you seek written advice from the program administrators?
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33055
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Sun, Jul 16 2017, 5:17 pm
Please see an attorney knowledgeable in asset protection. Perhaps your attorney can recommend one.
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saralem
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Sun, Jul 16 2017, 5:33 pm
Have a lawyer set up a special needs trust for you. That will allow you to keep your benefits. There will be a fund trustee who who'll be responsible for paying your bills from the fund.
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amother
Royalblue
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Sun, Jul 16 2017, 5:37 pm
amother wrote: | I've become disabled and am legit unable to work at least til I'm rehabilitated sufficiently, if and when that happens.
Meantime, I'm on programs and it's helping me survive somewhat. Tzedaka fills in somewhat. I still don't make ends meet and often charge my c.c to pay for necessities for my family ka"h. I've amassed a pretty penny in c.c debt. Any potential settlement would probably just about pay off my c.c debt.
The lawyer who's handling my case said the other party wants to settle. When he told me the amount of the settlement I turned it down because it is a drop in the bucket . I am ok to go to trial if need be.
I got to thinking about how to handle any possible settlement or judgement. If its considered income I may no longer qualify for the programs, yet the settlement amount would barely cover the cost of continued rehabilitative therapies, etc. while having to pay rent, food, etc. Or, I would like to use it to pay off my c.c debt, much but not all of it comprised of charges related to rehabilitative services.
Is there a way to protect any settlement amount, so as not to be disqualified from programs? Of course, if a judgment or settlement amount was decent enough to keep me afloat, I'd be ok to get off the programs. But I want to be prepared for the possibility that I may wind up with a drop in the bucket. Am I being clear about my question? |
I'm sorry for your injury.
To answer your question, for people in that type of situation, Yes there is.
I don't know your particulars but you should consult with an attorney who has experience with guardianship proceedings and Special Needs Trusts.
Hatzlocha with the trial or settlement.
Eta. Sorry I just saw the above poster also mentioned an SNT.
Note, it's possible the SNT needs to be established with court approval prior to distribution of the funds, so you may wish to find an experienced attorney sooner than later.
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amother
Slateblue
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Mon, Dec 04 2017, 7:00 pm
saralem wrote: | Have a lawyer set up a special needs trust for you. That will allow you to keep your benefits. There will be a fund trustee who who'll be responsible for paying your bills from the fund. |
So I asked my attorney about a snt, and he said the settlement amount is too low for that. Said a snt is usually done when there is a huge amount of money involved.
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33055
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Mon, Dec 04 2017, 10:21 pm
amother wrote: | So I asked my attorney about a snt, and he said the settlement amount is too low for that. Said a snt is usually done when there is a huge amount of money involved. |
How much money are you talking about?
Could it be that his specialty is not in trusts?
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Mommyg8
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Mon, Dec 04 2017, 10:26 pm
amother wrote: | I've become disabled and am legit unable to work at least til I'm rehabilitated sufficiently, if and when that happens.
Meantime, I'm on programs and it's helping me survive somewhat. Tzedaka fills in somewhat. I still don't make ends meet and often charge my c.c to pay for necessities for my family ka"h. I've amassed a pretty penny in c.c debt. Any potential settlement would probably just about pay off my c.c debt.
The lawyer who's handling my case said the other party wants to settle. When he told me the amount of the settlement I turned it down because it is a drop in the bucket . I am ok to go to trial if need be.
I got to thinking about how to handle any possible settlement or judgement. If its considered income I may no longer qualify for the programs, yet the settlement amount would barely cover the cost of continued rehabilitative therapies, etc. while having to pay rent, food, etc. Or, I would like to use it to pay off my c.c debt, much but not all of it comprised of charges related to rehabilitative services.
Is there a way to protect any settlement amount, so as not to be disqualified from programs? Of course, if a judgment or settlement amount was decent enough to keep me afloat, I'd be ok to get off the programs. But I want to be prepared for the possibility that I may wind up with a drop in the bucket. Am I being clear about my question? |
I would check with either an accountant or an attorney, or whoever it is that deals with this.
My understanding is that money you received in settlement due to injury is not taxable. As long as "programs" uses federal income tax guidelines, then you're good, and this will not affect your income or your programs. Depending on how the settlement is worded, however, this money may or may not be considered income, so it pays to double check with the right people who have your specific information.
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5S5Sr7z3
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Mon, Dec 04 2017, 10:30 pm
Lawsuit settlements do not fount as income. Been therr, done that. Twice. I did not pay taxes on the settlement $$$ either.
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amother
Royalblue
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Mon, Dec 04 2017, 10:39 pm
amother wrote: | So I asked my attorney about a snt, and he said the settlement amount is too low for that. Said a snt is usually done when there is a huge amount of money involved. |
Why? Did you ask him if the settlement money would be available to creditors' claims?
If the answer is yes, what difference would it make how large or small the sum is?
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amother
Slateblue
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Mon, Dec 04 2017, 10:42 pm
IYamWhoIYam wrote: | Lawsuit settlements do not fount as income. Been therr, done that. Twice. I did not pay taxes on the settlement $$$ either. |
You were receiving food stamps?
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33055
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Mon, Dec 04 2017, 10:51 pm
IYamWhoIYam wrote: | Lawsuit settlements do not fount as income. Been therr, done that. Twice. I did not pay taxes on the settlement $$$ either. |
Only sometimes. OP needs to speak with an attorney.
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