Keep your benefits after a financial windfall
What to do with one-time payments that make you ineligible for cash assistance, food stamps, or Medicaid. Depending on which assistance program you’re on, you could buy certain things, or you could save the money in a special account or trust.
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1. Why windfalls matter
Public benefits, such as cash assistance, food stamps, SSI, or Medicaid, are for people who can’t afford to pay for their basic needs. If you can pay for your basic needs with what you already have, you may not need public assistance right now.
Getting money from a lawsuit, inheritance, gift, or other way might make you ineligible for public benefits. It depends on what benefits you get, how much money you’ve gotten, and whether it’s a one-time (lump sum) payment.
If a lump sum payment puts you just a little over the limit to qualify for benefits, you might be able to spend it down by buying things or paying debts. If the amount is a lot, you might have to set up a special trust or special account to hold the money for you if you want to stay eligible for public benefits.
If you get public benefits like SSI, food stamps, or TANF, and you’ve gotten legal financial obligations (LFOs) refunded by the Court, you may need to follow “spend down requirements” to keep getting benefits. You should tell DSHS about this refund as soon as possible. If you have questions, try to get legal help.