Legal Question in Personal Injury in New York

Person in NY on disability receives personal injury settlement

A man on disability fell into a manhole, and will be receiving a settlement. Can it be mandated that the monies go into a trust that limits the way it is spent and does not allow for him to give anyone money? In other words, can the state mandate how injury settlements are spent by people collecting disability benefits?


Asked on 4/12/09, 5:22 pm

2 Answers from Attorneys
Jason Kessler Law Offices of Jason B. Kessler, P.C.

Re: Person in NY on disability receives personal injury settlement

You should find a lawyer who specializes in "special needs trusts". They could perhaps answer your questions. I know that NY disability will want a lien on the proceeds of your fall if they have been paying for your medical bills. Therefore, you need to speak to a Trusts and Estates (T and E) lawyer about a special needs trust. These lawyers can charge you a couple thousand dollars but if you are getting a lot of money it may be the best money that you have ever spent.

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Answered on 4/12/09, 5:35 pm
Gregory Lee Gregory P. Lee, Attorney at Law

Re: Person in NY on disability receives personal injury settlement

If the disability is SSI (Welfare based on disability as defined in the Social Security Act), or another need-based program, the state has the right to tell the recipient how to spend the money -- or cut off his or her benefits. It's part of the implicit contract in accepting the state's money.

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Answered on 4/12/09, 6:03 pm


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