Will an Inheritance or Personal Injury Settlement Effect My Social Security Benefits?

It is not unusual for person’s receiving Social Security benefits to come into money or property by way of inheritance or personal injury settlement or judgment. To determine whether the receipt of this money or property will adversely affect your benefits, you must determine what type of Social Security benefits you are receiving.

There are two types are Social Security benefits: Supplemental Security Income (SSI) benefits and the other is called Social Security Disability (SSDI) benefits.

Social Security Disability benefits are paid to persons that have put in the required number of quarter payments over a specified period of time and is not needs based. A person drawing Social Security Disability benefits has no limits on what property they can own.  Therefore, the receipt of an inheritance or personal injury settlement will have no effect on a person receiving Social Security Disability benefits.

On the other hand, Supplemental Security Income benefits is a needs-based program. Claimants are entitled to these benefits only if they do not exceed certain property limits.  Therefore, the receipt of an inheritance or personal injury settlement may have an effect on a person receiving Supplemental Security Income benefits.

If you are unsure what kind of benefits you are drawing, you can obtain this information the Social Security Administration in order to take preventive actions to avoid losing eligibility of your Supplemental Security Income benefits.

 

 

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Important Upcoming Free Seminar

Our next free seminar on How to Plan for Long Term Care is scheduled for Tuesday August 21, 2018 at the Ascension Parish Library – Gonzales 708 South Irma Blvd. Gonzales, LA 70737 at 9:30am, 12:00pm, and 6:00pm.  To reserve your spot please call 877-868-8907

Social Security Disability: Don’t Avoid Treatment

It is not uncommon for people that have physical or mental disabilities to avoid treatment. When the medical records are reviewed, you will find long time periods where the claimant did not see a doctor for examinations or treatments.

These gaps, in the medical records can cause significant problems in proving a Social Security Disability (SDI) or Supplemental Security Income (SSI) claim. Without ongoing office visits, it will be difficult for a doctor to state whether your condition got better, worse or remained the same. It will be difficult for the Social Security Administration to assess your ongoing disability and determine its severity.  It will also be difficult for your treating doctor to assist you in providing an accurate diagnosis, determination of disability and plan for treatment.

Further, your medical treatment may require testing, treatment and therapy. All of these elements can also be used to prove your Social Security Disability case.

If you are seeing a doctor, you should continue to make and attend recommended office medical visits. You should also comply when your doctor prescribes testing, treatment and therapy.

Avoiding treatment can not only adversely affect your health and wellbeing, it can also hurt your claim with the Social Security Administration.

If you have any questions concerning Social Security claims, you should consult an experience Social Security attorney.

 

Kent S. DeJean

 

Taxpayers who owed tax this year should check their withholding soon

Taxpayers who owed additional tax when they filed their federal return earlier this year should do a “paycheck checkup” as soon as possible. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help these taxpayers do a checkup and avoid another possibly bigger tax bill next year.

Following the Tax Cuts and Jobs Act, which was passed last year, there are many changes to the tax law that could affect these taxpayers. Doing a checkup now will help them make sure their current tax withholding is in line with their 2018 tax situation.

 

Communicating with The Social Security Administration

A Social Security claim is extremely important to any individual. To facilitate this claim, communications are a must.

I do not recommend that claimants communicate by telephone as a general rule. The reason I do not recommend this method of communication is the Social Security Administration is an enormous government entity. It is unlikely that your telephone message to a general number will be returned. It is fine to communicate by telephone if you have a specific worker and extension number to call.  Otherwise, I would not rely on this method.

A claimant should also be careful in using the mail to communicate with the Social Security Administration. It is easy for your correspondence to be misplaced. Therefore, I strongly urge that you always keep a copy of your letters and information mailed to the Social Security Administration. Never assume that the office has received your information. Follow up if you have not heard from the office. By keeping a copy of all documents sent to the office, you can avoid unpleasant delays and problems in re-constructing documents which were already sent.

I find the best way to communicate with the Social Security Administration is to go personally to the local office to speak to a worker. This can take some time and effort but, you are guaranteed to speak to someone about the status of your claim or it’s facilitation.

The Social Security Administration also allows you to make claims online. If you use this method, make sure that you save your claim or confirmation number as well as copies of your claim either electronically or in hard copies. If you haven’t heard from the Social Security Administration within a reasonable period of time, you should go into the local office to follow up.

 

Don’t Use Powers of Attorney After Principal Has Died!

Unfortunately, it is common for agents in powers of attorney to continue to use them to conduct financial business even after the principal has died. Once a principal has died, the agent and the principal’s family or legatees should consult with a succession attorney.

It is important to remember that powers of attorney should never be used to conduct business once the principal has died. The agent has no legal authority to conduct business. Under Louisiana law, the administration of assets is governed by succession law. It will necessary to obtain the proper authority of a court or obtain necessary documentation to obtain the authority to administer the assets and debts of the principal’s estate.

Since the agent lacks legal authority once the principal dies, any actions taken by the agent using the power of attorney to administer the Principal’s estate, can be challenged. This can subject the agent to possible civil litigation and criminal actions.

If you have any questions regarding powers or attorney or succession, please consult an experienced estate planning attorney. Kent S. DeJean

How Often Should I Update My Will?

There is a large public misunderstanding that a will is something set in concrete, that doesn’t change and is to be signed and put away until death.  Yet, it is important for people to review and update their wills regularly. Outdated wills can lead to absurd and unintended consequences upon your death.

Relationships can change. Family members can die. You might divorce. You may find yourself close to one person one day and then have difficulties in that relationship. You may find yourself now closer to another family member.  Also, your estate can change. There are dramatic changes in a person’s property over time. If you keep an annual inventory, you will see marked changes every year when you go to update the inventory.

There are certain major life changes when people should review and revise their wills: If they are getting married, getting divorced, a person mentioned in the will has died, or adopted a child. These life changes will normally create significant revisions in a will.

Also, if you turn sixty-five (65), you will want to review your will. You will probably want to consider Medicaid planning, asset protection and probate avoidance in revising your will.

I normally recommend that people review their wills every four (4) years if none of the other events mentioned above occur. During a four (4) year time period, it is possible to see significant relationship or asset changes that may warrant a revision to your will.

If you have any questions concerning wills, you should consult an experienced estate planning attorney.

 

Kent S. DeJean

 

 

Are Life Insurance Proceeds Part of a Succession?

In Louisiana, the general answer to this question is no. Life insurance proceeds are not part of a succession. This can be confusing because both successions and life insurance claims both result from someone’s death. So, it is often assumed that they are handled together.

However, it is important to remember that life insurance is not part of the estate of the person that died. The decedent doesn’t own the life insurance proceeds. The insurance proceeds are contractual in that they are paid to the beneficiary on the condition of the decedent’s death.

 

So, if there is a beneficiary that has survived the decedent, that beneficiary does not have to open a succession with regard to those insurance proceeds. The surviving beneficiary will probably only have to submit a death certificate and the insurance company’s application to obtain the life insurance proceeds.

However, if the beneficiary named in the life insurance died before the decedent or the decedent named their estate as the beneficiary, these life insurance proceeds would have to be handled in the succession.

If you have any questions concerning successions, you should consult an experience estate planning attorney.

 

Kent S. DeJean

 

The Biggest Mistake Made by Social Security Claimants

 

One of the biggest mistakes that people make in applying for Social Security benefits is that they believe and assume that the Social Security Administration is their advocate. They believe that the Social Security Administration is advocating for them and taking care of their cases. The truth is that the Social Security Administration is a federal administrative body to administer claims. Don’t get me wrong. The people that work with the Social Security Administration are good hard-working people.

But the Social Security Administration is not the claimant’s attorney. Although the Social Security Administration will assist to some degree in getting medical evidence, it is the responsibility of the clamant to obtain and submit medical evidence. The Social Security Administration will not assist a person in advocating the claimant’s claims. Without an attorney, claimant’s find that they are representing themselves. They will find that their claims have been denied because evidence was not received or important parts of their cases were not submitted. To add insult to injury, it is difficult to appeal these decisions.

It is very important that a claimant consult with an experienced attorney that handles Social Security cases. A claimant’s case is important to them. The process in obtaining benefits is a long one and often times, the claimant is experiencing financial distress. Time is of the essence. So, it is important that claimant make the most of their opportunity to make sure that their cases are being properly presented.

Kent S. DeJean