I’ve seen it before. You are struggling to make ends meet with the benefits you receive from Social Security. It’s getting a little tight and the next thing you know, you come into a bulk of money. Now, it doesn’t matter where the money is coming from (whether it’s Workers Compensation, VA benefits, inheritance, lottery, or settlement), it really helps.
However, you got a little problem. You don’t know if you should tell Social Security Administration or not. So what do you do? You wonder if there is a way that you can keep the money in a way so the Social Security Administration won’t find out.
The moment you start looking for ways to be slick and keep the fact that you got money from Social Security, you run into a few things that you should know:
1) This ain’t your homeboy or homegirl off the block. This is the federal government and they don’t PLAY!
I can’t tell you how many times I tell my clients that it is almost impossible to hide things from the Social Security Administration. So many things are tide to your Social Security number that it is virtually impossible to keep things secret, especially money.
2) There is no loophole!
When it comes to money and your Social Security benefits, the law is black or white depending on what type of money you are getting from Social Security and what type of money you are getting from another source. This is why it is important to understand the type of benefits you are receiving and how getting a windfall may apply.
3) The Social Security Administration will GET their money!
If you get money and it impacts Social Security and they don’t find out until later, you will FEEL IT! They will either reduce your benefits or possibly cut them off in order to get the money back that they shouldn’t have paid you because you got a lump sum of money and don’t tell them.
4) They will keep an eye on YOU in the future!
I had a client a few years ago who had a child with SSI. When her child got benefits, Social Security required the mother to set up a dedicated account. For those of you who don’t know what a dedicated account is, it’s an account that can only be used for certain things and every dollar spent must be documented. If you don’t, you may risk losing your benefits. The mother didn’t understand why she had to have one. Well, unfortunately, she had multiple charges of bad checks and fraud and at least one situation where she failed to tell Social Security about monies she was receiving from another source. So, the account they set up was to ensure that she spent the money properly on the child. In other words, they didn’t trust her to manage her child’s money. So why would you run dirty and risk being under scrutiny by the Social Security Administration?
5) I know you want your money but play it smart.
Listen, I know that times are tight. I even understand that it is difficult to live on the money that Social Security has awarded you. However, it’s important that you play it smart. Why risk the possibility of having your benefits affected in the future?
6) Proceed at your own risk.
For the 8 years that I have practiced law, I have learned at least ONE universal truth. Despite all of the advice, information, and warnings that I provide, people will do what the HELL they want to do. As an attorney, I don’t focus on the short term. I look at the long term and invariably, people are going to do what they think will fix their situation NOW as opposed to dealing with something BIGGER later.
Listen, I understand how tough it is and it’s a pain when you find yourself in a position of getting a big sum of money that NOW, you have to figure out a way to keep the money and not lose your benefits. Well, don’t make your situation worse by trying to find a slick way around not telling Social Security about your money. In the end, you could make matters worse than better.
