Family member wants to investing but cannot report income

[Chris Matos]

My grandmother received a lump sum check from court after being hit in a car accident. She would like to invest about $20K. However, she is also on food stamps and social security and cannot earn an income above $22K per year. I would like to get her to the point were she is no longer on some of the benefits. For the short term, is there a way she can invest where her returns are not counted as income?

For example, I cannot treat her as a hardmoney/private lender and pay 12% on her $20k loan because that 12% would be taxable income, correct?

Alternatively, I could bring her in as a member/manager to one of the LLCs and create an agreement to reinvest her earnings. I am not sure if this is the best approach and curious of other alternatives. Thank you so much!