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Yes, your personal injury settlement affects your eligibility to participate in Florida’s Supplemental Nutrition Assistance Program (SNAP). Because SNAP is a financially need-based program, your eligibility and the amount of assistance you receive each month are determined by your household income and its size.
However, there are ways to handle any income you receive in a personal injury case settlement; your Fort Lauderdale personal injury lawyer can help you manage your settlement funds and maintain your eligibility for SNAP benefits.
SNAP income limits and your government benefits eligibility
Income limits and resource caps (resources are considered assets that can be used to buy food, such as money in your bank account) change each year and vary depending on the number of people living in the household and how many of those are able to engage in gainful employment. Generally, your household income must be at or below 130% of the federal poverty line to qualify.
Receiving your personal injury settlement may render you ineligible for SNAP if the money lands in your checking account at once and is still there by the last day of the month.
If you receive Supplemental Security Income (SSI), your eligibility may also be in jeopardy, as this program is also income-based. Social Security Disability Insurance (SSDI), however, should remain unaffected, as it’s not financial needs-based.
What types of compensation in my settlement affect my food stamps?
The type of compensation you receive and how you receive it also impacts SNAP eligibility. If a lump sum is deposited into your account, it can easily push you over the resources limit for the month it was deposited, and any months thereafter, until your account balance is low enough to qualify. However, if you get smaller structured payments, the settlement may not increase your assets and income enough to render you ineligible for the program.
Compensation that will count against your SNAP eligibility includes:
- Lost wages
- Punitive damages
- Non-economic compensation for pain and suffering
- Any interest you receive on the settlement money also counts as household income.
Payments that may not affect SNAP eligibility:
- Compensation for past, present, and future medical expenses
- Reimbursement for property damage
- Legal fees
These expenses should be paid immediately upon receiving the settlement, so the money isn’t likely to remain in your account long enough to count against your eligibility anyway.
Managing your personal injury settlement to maintain government benefits
Failure to report your settlement to your local welfare center could land you in a lot of legal trouble, including having to repay any overpayment of benefits. However, you can also take one or more of these steps to preserve your settlement and benefits eligibility:
Spend down the settlement
Spend down refers to spending your settlement money on approved expenses, such as paying off debt, making necessary home repairs, and purchasing or repairing a reliable vehicle. However, avoid spending on assets that could increase your resource total, such as luxury items or secondary properties.
Create a Special Needs Trust
This type of trust pays for specific needs, such as housing and medical care that your government benefits and health insurance don’t cover. It must be specifically structured in accordance with Florida law governing SNTs to ensure you maintain eligibility for benefits.
Don’t let worry over your benefits affect your decision to sue
If you’ve been injured due to someone else’s negligence, you shouldn’t have to pay for your medical bills and other losses out of pocket. The experienced personal injury attorneys at Lytal, Reiter, Smith, Ivey & Fronrath can help you manage your settlement so it does not affect your food stamps. Call us today at (561) 655-1990 for a free consultation.