SSI Benefits and Personal Injury Settlements in Massachusetts
Quick Answer: SSI Benefits and Injury Claims in Massachusetts
- People who receive SSI can still pursue compensation after a car accident, slip and fall, or other injury
- Settlements must be structured correctly to avoid loss of SSI or related benefits
- Planning before settlement is critical
- A Dorchester personal injury lawyer can pursue compensation while protecting SSI eligibility
Understanding SSI and Personal Injury Settlements in Massachusetts
If you receive Supplemental Security Income (SSI) and are injured in a car accident, slip and fall, or premises liability incident, a settlement can put your benefits at risk if it is not handled properly. 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.
At Gavagan Law, LLC, we routinely represent injured clients in Dorchester and throughout Boston who rely on SSI and other public benefits. Planning before settlement funds are issued is critical.
Why Injury Settlements Can Affect SSI
SSI rules treat most settlement proceeds as countable resources if they remain in your possession beyond the month you receive them.
This commonly arises in:
- Slip and fall accidents
- Car accidents
- Pedestrian accidents
- Unsafe property or premises liability cases
Without proper planning, an injury settlement intended to help you recover can unintentionally jeopardize:
- SSI cash benefits
- MassHealth / Medicaid
- Public or subsidized housing
- SNAP / food assistance
- EAEDC or TAFDC
Spend-Down Options to Protect SSI Benefits
If handled correctly and within the same calendar month, settlement funds may be spent in ways that do not count toward SSI’s asset limit.
- Vehicle Purchase (Fully Exempt)
- One vehicle is exempt regardless of value
- Must be for your use or a household member
- Includes cars, trucks, motorcycles, or accessible vans
- Vehicle must be titled in your name
- Purchase must occur within the month of receipt
This is often the most practical option for injured clients who need transportation to medical appointments.
- Household Goods and Personal Effects (Exempt)
- Furniture and appliances
- Electronics (TVs, phones, computers)
- Clothing and personal items
- Medical and dental care not covered by insurance
- Mobility aids, hearing aids, eyeglasses
- Home repairs or accessibility modifications
Keep all receipts to document proper use.
- Medical and Disability-Related Expenses
- Outstanding medical bills
- Physical therapy
- Dental treatment
- Vision care
- Medical equipment
- In-home assistance related to injuries
These are especially relevant after serious slip and fall injuries or car accidents.
- Special Needs Trust or Pooled Trust (Larger Settlements)
- Funds placed in the trust do not count toward SSI limits
- Trust funds may be used to enhance quality of life
- Must be established before funds are counted as a resource
- Requires legal setup and administration
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.
For larger personal injury recoveries, a Special Needs Trust (SNT) or Pooled Trust may be the safest option. This option is common in serious injury cases involving long-term disability.
Actions That Can Cause Loss of SSI Benefits
- Do not gift or transfer settlement funds
- Do not sign over a check to family members
- Do not let funds roll into the next month unspent
Improper transfers can trigger up to 36 months of SSI ineligibility.
Injured in an accident and receive SSI benefits? Call Gavagan Law for a Free Consultation
At Gavagan Law, we help injured SSI recipients pursue compensation while carefully considering how benefits may be affected. If you were injured in a slip and fall, car accident, or premises liability accident and receive SSI or public benefits, call or reach out using our contact form for a free consultation with Gavagan Law, LLC. Our office is located in Dorchester, and we regularly represent injured clients throughout Dorchester, Boston, Quincy, Cambridge, Worcester, Greater Boston area.
