The problem: a $2,000 limit.
Supplemental Security Income (SSI) has a resource limit of just $2,000 for an individual and $3,000 for a couple — limits that haven't changed since 1989. In Texas and New Mexico, SSI recipients generally receive Medicaid as well, so losing SSI can put health coverage at risk too. A personal injury settlement, back pay, or inheritance paid directly to someone on SSI can push them over the limit and suspend benefits they depend on.
The best time to protect public benefits is before settlement funds are paid. Once the money lands in the injured person's own account, the options narrow and the benefits clock starts running.
The tools that protect benefits.
First-party special needs trust
Holds the person's own money — like a settlement — without counting against SSI or Medicaid. It must be set up before age 65, for the person's benefit, and must repay Medicaid from what remains at death (42 U.S.C. § 1396p(d)(4)(A)).
Pooled trust
A nonprofit-managed trust with individual sub-accounts — an option when a stand-alone trust doesn't fit. Rules for people 65 and older vary, so it needs careful review.
Third-party special needs trust
Funded by parents or relatives — often through a will — for a family member with a disability. No Medicaid payback is required, because the money was never the beneficiary's.
ABLE account
A tax-advantaged account for people whose disability began before age 46 (expanded from 26 on January 1, 2026). The first $100,000 doesn't count against SSI's resource limit.
These tools often work together — for example, a special needs trust that funds an ABLE account the beneficiary manages day to day. The right mix depends on the person's age, benefits, and needs.
Where injury law meets estate law.
Wrongful death in New Mexico
Only a court-appointed personal representative can bring a wrongful death claim in New Mexico (NMSA § 41-2-3). Getting that appointment right — and quickly — is the first step in the case. How NM wrongful death works →
Wrongful death & survival claims in Texas
In Texas, the wrongful death claim belongs to the surviving spouse, children, and parents, while the separate survival claim belongs to the estate and is brought by its representative or heirs.
Settlements for children
A minor's settlement must be protected until adulthood. In Texas, funds are often placed in a court-supervised management trust or the court registry under Chapter 142 of the Property Code; New Mexico courts likewise review and protect minors' settlements.
Large settlements
Structured settlements, trusts, and Medicare's interests can all affect how a settlement should be received. We coordinate the injury case and the estate plan so the recovery actually serves the family.
Who we help.
- Injury clients who receive SSI or Medicaid
- Parents planning for a child with a disability
- Families receiving a wrongful death or survival recovery
- Anyone who relies on public benefits and expects an inheritance
Trust fees are quoted after a consultation, because the right structure depends on the person, the benefits involved, and the amount.
Common questions.
Will my injury settlement affect my SSI?+
Does a settlement affect SSDI?+
What is the Medicaid payback?+
Can I set up a special needs trust myself?+
How much does a special needs trust cost?+
Texas estate planning services are provided by Jeff Barnett, Of Counsel (Texas Practice), of Barnett & Leuty, PC, Austin, Texas, licensed in Texas. New Mexico estate planning services are provided by Shawn Barnett, Managing Attorney, licensed in New Mexico. This page provides general information, not legal advice; reading it does not create an attorney-client relationship.