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If I am about to recieve a settlement will that affect my food stamp and medicaid benefits in NJ?

Carlstadt, NJ |

I receive food stamp benefits and medicaid for my son and I. I'm wondering if my car accident settlement money will affect that or will any of my money be taken?

Attorney Answers 1


  1. Receipt of the settlement funds could well affect your food stamp eligibility and Medicaid eligibility. If you have an attorney, you should discuss the situation with him or her immediately.

    If the settlement is substantial, there are ways that can be employed to minimize the impact on your eligibility. Your attorney will know how to do this.

    If the settlement does not warrant the creation of a special needs trust or similar device, you will need to report the receipt of these monies to the Medicaid office and the food stamp office. They will be able to explain to you how receipt of the funds will affect your eligibility. Additionally, if your son was injured in your accident and Medicaid has paid any of his bills, there is a federal statutory lien which must also be satisfied. Failureto report the receipt of funds to the Medicaid office and the food stamp office would be a violation of the law.

    Legal Disclaimer:

    Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to insure proper advice is received.