Legal Question in Personal Injury in Texas

Re: Power of Attorney over Settlements

Ordinarily personal injury settlements are not taxable.

I perceive that your cousin is intent upon using you as a part of a scam to deceive the U.S. government in regard to his SSI eligibility. If he intends to lie about the true facts, or fail to disclose accurate facts regarding his financial circumstances, and you are part of the plot, it will not be in your best interest to participate in fraudulent and felonious scheme to assist him in this endeavor. His giving you a power of attorney does not remove the funds from his name, and accomplishes nothing except to allow you to share in the management of the funds for him, and would not in and of itself be illegal. However, the fact that your cousin believes that a power of attorney will have a bearing upon his SSI eligibility suggests that he intends to achieve something other mere assistance in the management of funds. Your cousin needs some professional financial planning. He needs to talk to an attorney and/or CPA who is knowledgeable in the subject SSI. His idea of you and he cooking up something together to deceive the SSI folks is a very bad idea.