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

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 affect 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.

Reasons to Update Your Will

It is important to remember that persons shouldn’t just execute their wills, store them and not worry about them. Wills should always be updated. Otherwise, there can be an absurd result regarding your estate when you die if your will hasn’t been updated.

The following are some examples of significant events in your life for which you should consult an attorney to update your will:

  1. You got married;
  2. Someone named in your will has died;
  3. You had a child;
  4. Your spouse or legatees have become disabled; or
  5. You got divorced.

Even if no significant events in your life have occurred, it is still good practice to meet with your attorney every five (5) years to update your will. The reason you should regularly consult with your attorney regarding updating your will, is that your assets can significantly change even in a brief period of time. Also, your relationships can change significantly over time. If your assets or relationships have changed, you may want to update your will to change who gets what.

If you have any questions regarding updating your will, you should consult an experienced estate attorney. Kent S. DeJean

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

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

 

I Moved to Louisiana And Have A Will Executed in Another State. Should I Get A New Will Done in Louisiana?

It is common for people to move to different states. Potential clients come to my office asking if it is necessary to execute a new will in Louisiana. The answer to the question is somewhat complex.

The legal answer is that the law does not require that you have a Louisiana will. The will of another state can be probated and recognized by a Louisiana Court. There is a special procedure under Louisiana law that allows heirs and legatees to have these out of state wills recognized legally.

The problem with out of state wills is that they are drafted according the laws of that other state. Louisiana law can be very different from other states. Terminology can be very different state to state. Also, certain legal concepts may exist in one and may either be very different or not exist in another.

Although Louisiana courts will attempt to comply with the wishes of the decedent in their out of state will, they still may be unable to implement the directions due to the difference in the law. Sometimes, it may be difficult to implement the intent because there is no such legal concept under Louisiana law.

It is advisable that you have your out of state will examined by a Louisiana attorney to determine whether you need to have a Louisiana will drafted and executed to make sure your intentions are recognized and implemented.

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

 

Kent S. DeJean

Free Senior Workshop

You are invited to attend our Free Senior Work Shop on Wednesday, May 9, 2018 at 12:00pm and 6:00pm at the East Baton Rouge Library – Goodwood, 7711 Goodwood Blvd. Baton Rouge, LA. Please RSVP seating is limited.  Please call to reserve 225-892-9702

New Medicaid Numbers

 

Community Spouse Resource Allowance $123,600
Resource Allowance for an Individual $2,000
Resource Allowance for a Couple
(Both husband and wife in a nursing home)
$3,000
Monthly Maintenance Needs Allowance $3,090.00
Monthly Personal Needs Allowance $38
Divestment Penalty Divisor $4,000
Maximum Home Exclusion $572,000