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Disability and a death benefit - legal or financial advice needed

Blskypilot

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So I've got a situation that needs answers I don't have and what better place for advice than the odt.

Below is the short version...won't seem like it but I skipped a ton of the details on the stuff that brings us to the main events.

So, everything starts when my mom got sick middle of September at two weeks shy of her 63rd birthday. Diagnosed a week later with intrahepatic cholangiocarcinoma (bile duct cancer that occurs inside of the liver; incurable, inoperable and a five year survival rate of about 2%) . Really hadn't been to the doctor for much in 30 years other than a cold. She passed away a few weeks later on the 27th of October and its been an awful experience as would be expected.

This week Monday my father tried to kill him self by downing about 30 Percocet 15mg but he's been on the meds for so many years that apparently what would kill an elephant wouldn't kill him. Out of icu today but still on suicide watch and I don't even know how I should proceed with helping him. He certainly can't be alone anymore and I'm not sure if there are steps I should take to gain control of his affairs as his judgement isn't sound anymore. Is there a way to force him into treatment, worried that they sober him up and release him to try again.

Next, I am receiving a 1/3rd split of a 50k life insurance benefit from my mother that I was unaware of. I'm married with three kids, twin boys that are 2yrs old and diagnosed with autism spectrum disorders and a 3yr old hell raiser of a little girl. Mom is the full time caretaker with no income. I work about 75 hours a week and we make it ok but the boys receive social security income for the disability and thankfully the therapy and other programs that will help them overcome the challenges of life. I'm concerned this one time payment that won't change is overall in the long run but could certainly help with the bills and a trip to take them all to Disney in a couple years like their grandmother wanted. Takes too long to get the help we needed I'd almost rather donate the money to cancer research if it means losing my kids healthcare and other benefits that we couldn't easily afford otherwise.

Do I need a family lawyer for the situation with dad and someone else for the legal/tax/financial implications? I don't want to call ssi and ask but if that check comes and I cash or deposit it they will find out as they verify bank accounts, pay stubs and assets fairly often so far.

Someone here has surely dealt with these issues before, probably not all at once inside of two months but hey...when it rains it pours.
 
there is a certain amount that you can receive under existing ss law. actually I don't think you be receiving enough to get their attention. you may even have an exemption ir you can file for one. just give ss a call or try to look look it up on line. I worked in that area for years but things are changing all the time. It occurs to me that the indemnity provider might not even report it abd if they do it will just account as income. call ss and ask
 
Talk to an attorney and have them set up an irrevocable special needs trust for the boys/children. Deposit the insurance payment into it. That money will be theirs with you or your assign as executor to direct all disbursements from the trust. The trust stands alone and is not considered as part of your wealth. You can then use it to pay for the vacation when the time comes. You will need to have a special bank account set up for the trust and will have to file tax returns on it annually. Just my two cents.....

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Generally speaking, Life Insurance proceeds are not Taxable as Income...Don't know about the implications as far as your kid's disability benefits, but certainly someone at the Social Security Administration could answer that one for you...You might wanna' consult a Disability Attorney if you can't get any help from the SSA...
 
Thanks guys. Everything I find says it shouldn't be a real problem with taxes. Usually not taxable.

I'm going to look into the trust option and see what a disability attorney has to say. I'd just give the caseworker a call but I don't want to do or say anything that jeopardizes their disposition. I'm afraid they will say one thing and then a week later something shows up in the mail.
 
Off the wall idea but, do they consider the equity in your house to be an asset? if not take it to your lender and make a one time payment to the principle????
 
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