My 59 year old sister has been a Social Security Disability for most of her life she fell at local McDonalds and as won a judgement from them

Legal action has won judgement for my sister- McDonalds agreed to pay $55k in medical expenses and $35k for pain and suffering. Now law firm that won judgement wants my sister to pay them $1700 to set up a special needs checking account to hide money from I guess SS and IRS, my sister will not have access to her money on a daily basis, she will receive no interest but will have to pay law firm 5% on balance after first year. Question- will my sister lose her social security monthly payment if she takes judgement in full, law office says yes and she will have to reapply next year to receive benefits again Will she have to pay taxes on the $35k Is the $55k in medical bill payment considered income