[WSBARP] Personal Injury Award and Social Security Income

[MK Henderson]

Jim, SSI is supplemental security income based on a persons income and
assets. So if a PI award is over $2,000 then you possibly need to create a
special needs trust. I don't believe a PI award is considered income as to
Social Security Disability(SSDI). There are now ABLE accounts for SSI
recipients that you may want to look into.

On Wednesday, August 9, 2017, Jim Doran <jim at doranlegal.com> wrote:

> So a personal injury award CAN affect social security disability income.
> Yes, a special needs trust could be set up for the recipient to avoid that
> problem.
>
> But how do I know if the award will violate the social security income
> source?
>
> Jim Doran
>
> James R. Doran
> Attorney at Law
> 100 E. Pine Street -  Suite 205
> Bellingham, WA 98225
> (360)393-9506
> jim at doranlegal.com <javascript:_e(%7B%7D,'cvml','jim at doranlegal.com');>
> www.doranlegal.com
>
> On Wed, Aug 9, 2017 at 2:02 PM, NC <seaseanc at gmail.com
> <javascript:_e(%7B%7D,'cvml','seaseanc at gmail.com');>> wrote:
>
>> Sometimes a trust is set up to handle these awards and not affect
>> eligibility.
>>
>> On Wed, Aug 9, 2017 at 1:48 PM, Jim Doran <jim at doranlegal.com
>> <javascript:_e(%7B%7D,'cvml','jim at doranlegal.com');>> wrote:
>>
>>> Thanks for the reply.
>>>
>>> Jim Doran
>>>
>>> James R. Doran
>>> Attorney at Law
>>> 100 E. Pine Street -  Suite 205
>>> Bellingham, WA 98225
>>> (360)393-9506 <(360)%20393-9506>
>>> jim at doranlegal.com <javascript:_e(%7B%7D,'cvml','jim at doranlegal.com');>
>>> www.doranlegal.com
>>>
>>> On Wed, Aug 9, 2017 at 1:37 PM, Roger Hawkes <Roger at law-hawks.com
>>> <javascript:_e(%7B%7D,'cvml','Roger at law-hawks.com');>> wrote:
>>>
>>>> Jim: SSI is based on poverty, so any incoming resources could affect
>>>> that; if it actually is ssdi, that is based on inability to work and would
>>>> not be affected by resources.  PI awards are not considered taxable income
>>>> if there was a physical injury to the person; some pi awards do not include
>>>> physical injuries to the awardee.
>>>>
>>>>
>>>>
>>>> Roger Hawkes, WSBA 5173
>>>>
>>>> 19909 Ballinger Way NE
>>>>
>>>> Shoreline, WA 98155
>>>>
>>>> www.hawkeslawfirm.com
>>>>
>>>> 206 367 5000 <(206)%20367-5000> voice
>>>>
>>>> 206 367 4005 <(206)%20367-4005>  fax
>>>>
>>>>
>>>>
>>>> *From:* Jim Doran [mailto:jim at doranlegal.com
>>>> <javascript:_e(%7B%7D,'cvml','jim at doranlegal.com');>]
>>>> *Sent:* Tuesday, August 8, 2017 10:43 AM
>>>> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com
>>>> <javascript:_e(%7B%7D,'cvml','wsbarp at lists.wsbarppt.com');>>
>>>> *Subject:* [WSBARP] Personal Injury Award and Social Security Income
>>>>
>>>>
>>>>
>>>> Good day:
>>>>
>>>> An insurance award for personal injury is not "income" for IRS
>>>> purposes.  The question is whether the personal injury award can have any
>>>> negative impact with the SSA for the recipient of that award who is
>>>> receiving SSI?
>>>>
>>>> My expectation is that the personal injury compensation is not "income"
>>>> for any purposes.
>>>>
>>>> Any clarity from any one?  I do not want to spend 2 hours on the phone
>>>> trying to get an answer out of some one at the SSA office.
>>>>
>>>> Thank you.
>>>>
>>>> Jim Doran
>>>>
>>>>
>>>>
>>>> James R. Doran
>>>>
>>>> Attorney at Law
>>>>
>>>> 100 E. Pine Street -  Suite 205
>>>>
>>>> Bellingham, WA 98225
>>>> (360)393-9506 <(360)%20393-9506>
>>>>
>>>> jim at doranlegal.com <javascript:_e(%7B%7D,'cvml','jim at doranlegal.com');>
>>>>
>>>> www.doranlegal.com
>>>>
>>>> _______________________________________________
>>>> WSBARP mailing list
>>>> WSBARP at lists.wsbarppt.com
>>>> <javascript:_e(%7B%7D,'cvml','WSBARP at lists.wsbarppt.com');>
>>>> http://mailman.fsr.com/mailman/listinfo/wsbarp
>>>>
>>>
>>>
>>> _______________________________________________
>>> WSBARP mailing list
>>> WSBARP at lists.wsbarppt.com
>>> <javascript:_e(%7B%7D,'cvml','WSBARP at lists.wsbarppt.com');>
>>> http://mailman.fsr.com/mailman/listinfo/wsbarp
>>>
>>
>>
>>
>> --
>> Nicholas L. Clapham
>> (206)939-0262 <(206)%20939-0262>
>>
>> NOTICE- This email message may contain confidential and privileged
>> information. It is intended only for the named recipent(s) and may
>> contain
>> attorney work product and/or information exempt from disclosure under
>> applicable law. Any unauthorized use is prohibited.  If you are not the
>> intended recipient, please contact the sender by reply email and destroy
>> all copies of the original message. This does not constitute an
>> electronic
>> signature.
>>
>> Pursuant to U.S. Treasury Department Circular 230 and other IRS
>> regulations, unless we expressly state otherwise, any tax advice
>> contained
>> in this communication (including any attachments) was not intended or
>> written to be used, and cannot be used, for the purpose of (i) avoiding
>> tax-related penalties or (ii) promoting, marketing or recommending to
>> another party any transaction or matter(s) addressed herein.
>>
>>
>>
>> _______________________________________________
>> WSBARP mailing list
>> WSBARP at lists.wsbarppt.com
>> <javascript:_e(%7B%7D,'cvml','WSBARP at lists.wsbarppt.com');>
>> http://mailman.fsr.com/mailman/listinfo/wsbarp
>>
>
>

-- 
Mary K. Henderson
Henderson Law Office PLLC
1123 Maple Ave SW, Suite 225
Renton, WA 98057
206-650-2472
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20170810/cc41eb14/attachment.html>