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Personal Injury settlements and Disability benefits

If your special needs child in Massachusetts was injured in an accident and was awarded a personal injury settlement, you may be wondering if they can accept the funds without losing their Supplemental Security Income (SSI) and MassHealth benefits.

For example, in a personal injury case an individual with special needs was severely injured when he slipped and fell while under the care of a day program. This individual suffered from developmental delays intellectually and required supervision and assistance due to compromised muscle coordination and balance. This individual received SSI benefits as well as MassHealth.

Generally, if an individual receives SSI benefits their assets cannot exceed $2,000.00. If they were to accept a personal injury settlement over $2,000.00, they could risk losing their SSI and MassHealth benefits. 

How do I protect the personal injury settlement of my special needs child?

If the individual has a Guardian, creating a Special Needs Trust can protect those settlement funds. If the individual does not have a Guardian or anyone to act as a Trustee, and is under 65 years old, an Individual Trust or Pooled Trust could protect the majority of those funds so that they can be used to assist that person with their day-to-day needs. Each scenario is different and each trust would be subject to different requirements. 

If you’re navigating a personal injury settlement for your special needs child in Boston, Massachusetts, and are concerned about preserving their essential benefits, Gavagan Law, LLC is here to guide you. We specialize in complex cases to ensure you get the compensation you deserve without compromising ongoing benefits.

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