[blindlaw] ramifications of receiving Target settlement check forSSI recipients

[McCarthy, Jim]

Chuck and others,
We at the National Center for the Blind have begun to receive calls on
the same point.  I reached out to one of the lawyers and suggested that
individuals need to know the basic consequences of their receiving money
from the Target settlement.  However, the means to best convey that
information to a large class of diverse members poses some challenges
and I am not sure how it will be addressed at this time.  I do think
some basic information on this list is not a bad idea though because
many of us may have contact with folks who get SSI and have received
Target Settlement funds.

Unfortunately, there is no income or resource exclusion in SSI for
settlements of civil rights cases as this clearly is.  As for the
possibility of a special needs trust, I doubt that the amounts are
significant enough to make a trust really feasible and I imagine you are
also right regarding timing.  The basic SSI rule applies.  The funds,
between $3,500 and $7,000, as I understand the amounts, are unearned
income when received.  That means all but $20 is counted when
determining whether an SSI benefit is available.  Needless to say, in
the month of receipt, no check is available.  In the next full calendar
month, the funds become a resource.  An individual is allowed a total of
$2,000 in resources so for as long as the total exceeds that amount, the
individual is not entitled to an SSI benefit.  The final thing I will
say about this is that if anyone in California wants to give advice to
chapter members, friends etc. receiving SSI who are entitled to funds
from the Target settlement, discourage people from putting the
settlement money under the mattress.  The rules I mentioned above kick
in on receipt of the money and it is pretty clear within perhaps a day
or so, when each person received their money.  Holding it thinking or
hoping SSI will not come to know is a very bad strategy that will not
work.
Jim McCarthy

-----Original Message-----
From: blindlaw-bounces at nfbnet.org [mailto:blindlaw-bounces at nfbnet.org]
On Behalf Of ckrugman at sbcglobal.net
Sent: Thursday, June 11, 2009 5:26 AM
To: NFBnet Blind Law Mailing List
Subject: [blindlaw] ramifications of receiving Target settlement check
forSSI recipients

Recently I was contacted by a chapter member who was a recipient of the
Target settlement check. He is receiving SSI and is concerned about
protecting his settlement check and benefits. Was this issue addressed
or does anyone have suggestions. I think it might be a little late for a
special needs trust to be established. Let me know.
Chuck
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