My mother in-law just settled a lawsuit that paid her over $7000. She received a letter canceling her SSI money. is this allowed

Asked over 1 year ago - Philadelphia, PA

She gets $621 in social security and they knocked her down over the years to $39 in SSI. She fell out front of her neighbors house and fractured her ankle on a damaged curb. Her house is in bad shape and settled the case and received a settlement for $7,575. They are stating she is no longer able to receive the benefits. Can they do this?

Attorney answers (2)

  1. Clifford Michael Farrell

    Contributor Level 19

    4

    Lawyers agree

    Answered . YEs. SSI is need based, and assets over $2000 prove that in SSA's mind you no longer "need" the help. Keep receipts for where the money was spent and file a new claim in the next few months and she should get back on SSI fairly quickly.

    The exact answers to questions like this require more information than presented. The answer(s) provided should... more
  2. Paula Brown Sinclair

    Contributor Level 20

    2

    Lawyers agree

    1

    Answered . Social Security is an insurance program where workers pay premiums through payroll taxes. Social Security eligibility is not affected by other financial fortunes. Supplemental Security Income (SSI) is a means-tested welfare program for people of low income and few assets. If it was your mother's SSI that was terminated when she received $7,000, that result would be correct because her $7,000 would exceed the $2,000 limit on countable resources. When she has spent her settlement down to under $2,000, she should be able to reestablish her eligibility and start SSI benefits again.

    Best wishes for an outcome you can accept, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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