Will the receipt of money damages by a child from a wrongful death settlement impact the amount of her social security benefit?

A surviving parent presently receives a monthly SS payment for the child of a deceased parent. If the child is the recipient of money in settlement of a wrongful death claim, does the recovered amount have to be reported, and will it reduce the current monthly payment?

Auburn, WA -

Attorney Answers (2)

Elizabeth Rankin Powell

Elizabeth Rankin Powell

Landlord / Tenant Lawyer - Tacoma, WA
Answered

A minor settlement is a court action for money that goes to a minor, because minors cannot own property. The child will have a settlement guardian to approve the amount and set up the settlement fund. The money goes into a blocked account until the child reaches their majority. As the child cannot own property, it cannot affect his receipt of SS benefits.

Hope this helps. Elizabeth Powell

Lars A. Lundeen

Lars A. Lundeen

Personal Injury Lawyer - Rutland, VT
Answered

The Social Security Administration has a toll-free number that you will find in your local phone book which will allow you to address the specific facts of your situation with a knowledgeable person at Social Security. You do not need to reveal your name nor Social Security number in order to ask a general type question, using the specific facts of your situation. If the receipt of such funds could adversely impact the child, there are means by which this might be avoided through the use of certain trust documents. You should speak with the attorney handling the wrongful death matter about protecting this child's interests.

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.

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