As a plaintiff, you have several financial factors to consider when settling a case. One crucial consideration for many claimants is the impact on their eligibility for government benefits.
Income and asset tests for needs-based programs determine eligibility for some government benefits. Most states consider assets as low as $2,000 or $3,000 (for married individuals) as disqualifying for these benefits.

Entitlement programs like Medicare, SSDI, and Social Security Retirement Income are not impacted by a plaintiff receiving liability settlement proceeds. There could be a set-off to SSDI when an injured worker receives Worker’s Compensation settlement proceeds.
Needs-based programs like SSI, Medicaid, SNAP/Food Stamps, TANF, Subsidized Housing, and CHIP may likely be affected because the settling plaintiff receives funds above the asset test threshold.

While some believe that settlement proceeds can fully compensate for the loss of benefits, this is often untrue. For many injured claimants, the loss of benefits can have devastating consequences, as the expenses of medical treatments, medications, home modifications, and attendant care can quickly drain their settlement funds.
Before a settlement is finalized, we work with injured plaintiffs to assess:
- Your current or potential eligibility for government benefits based on need.
- The best strategy to preserve your eligibility and maximize settlement proceeds.
We can guide you through choosing between a Special Needs Trust (SNT), Pooled SNT, or Spend Down to protect your government benefits and settlement proceeds. Or, if you decide to forego your government benefits, you will be thoroughly educated on your options.