There are a number of government entitlement and welfare programs offered by state and federal governments.
Some of these programs are not affected by income or assets held by the recipient.
However, some of these programs are “means tested” meaning that the recipient may lose benefits if his or her income or assets rise above a certain level.
Sometimes a factoring transaction can turn a source of income (future periodic payments) into an asset (lump sum) that will cause the annuitant to lose eligibility for means-tested government assistance.
The following lists may help as a general guide in your research into the repercussions of entering into a factoring transaction:
Means Tested Programs (a lump sum may render you ineligible)
- Supplemental Security Income (SSI)
- Food Stamps
- Qualified Medicare Beneficiary (QMB)
- Adult Day Care Centers
- Mental Health & Mental Retardation Centers (MHMR)
Non-Means Tested Programs (a lump sum generally should not affect)
- Social Security Retirement
- Social Security Disability Income (SSDI)
- Social Security Survivor Benefits