Depends totally on the numbers. You may have an obligation to repay Medicaid and or/Medicare, which could eat up the settlement, but you may not. You may have better options that will preserve Medicaid. There also could be Medicare set-aside implications but probably not with such a small recovery. I'd recommend an elder law attorney consult.
Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.
If you are getting Medicaid, you have to be careful about how you receive and use the settlement. SSDI is not a means tested program, so I don't see major issues there. Contact a Medicaid attorney in your area before you get the settlement so that you are properly advised. You may be able to reimburse your aides but there may be some reporting requirement and time frames.
I concur with my colleagues. You have to tread carefully because of your situation. I'd get the advice of a qualified attorney in your area who specifically works with Medicaid and SSDI. See 'Find-A-Lawyer' at the top of this page. Good Luck.
My answer is based on the limited facts presented. It doesn’t create an attorney-client relationship. Use the ‘Find-A-Lawyer’ search engine at the top of this page and follow proper legal advice.