Continued eligibility for Social Security Disability Benefits is dependent on many different factors. These include your ability to work, your living situation, and any income and resources you have earned. However, the two disability benefit programs—SSI and SSDI—vary. What may disqualify an SSI recipient may not disqualify and SSDI recipient. Today we will be answering a question about the effect of inheritance on a person’s Social Security Disability Insurance benefits.
If you have a question that you’d like us to address in a future blog post, please leave it in the comment section below or contact us through Facebook, or Twitter. Today’s question is:
Will inheritance affect my SSDI benefits?
If you are a Social Security Disability Insurance (SSDI) recipient and receive an inheritance, it will not affect your benefits. SSDI is not a needs-based program and is not contingent upon your unearned income—including inheritance.
The only income that may potentially affect your SSDI benefits is any wages that you earn through employment. If you engage in Substantial Gainful Activity (SGA), your monthly payments could be lowered or eliminated as a result. In 2025, SGA is considered to be earning $1,620 or more in one month. If you begin working while receiving SSDI benefits, then it is necessary to report this income to the Social Security Administration (SSA).
However, if you are receiving Supplemental Security Income (SSI) benefits and have recently inherited funds, your benefits may potentially be affected. This is due to the fact that the SSI program is based on financial need. Any income, earned or unearned, can affect your benefits. Therefore it is imperative to inform the SSA of any changes to your income. You have up to ten days following the end of the month in which the change occurred to report the change.
Blog comments
In reply to I don't know if I'm by Cherie Murray (not verified)
Hi Cherie,
Hi Cherie,
It did not. When you reach full retirement age your benefits will change to retirement benefits, but it would not affect your benefit amounts.
My grandmother is dying of
My grandmother is dying of cancer, and while I was recently trying to verify her life insurance for funeral services, I determined that her beneficiary is my grandfather who also recently passed. I was informed that my dad being the next of kin, would then be the beneficiary. My dad is on SSI and is worried that this will cause him to lose coverage. If all of the money is spent on funeral expenses does it count and still need to be reported?
In reply to My grandmother is dying of by Patty (not verified)
Hi Patty,
Hi Patty,
This is such a horrible situation! I am so sorry to hear about it. I am unfortunately not sure how this would affect your dad. If your dad receives less than $2,000, he should be fine. If he's going to receive more, you could potentially arrange for it to be placed in a fund to be used at a later time for his well being. I would highly recommend calling the SSA at 1-800-772-1213 to learn a little more about this.
In reply to Hi Patty, by Deanna
What about Alimony? Would
What about Alimony? Would this affect SSDI?
In reply to What about Alimony? Would by Nancy (not verified)
Hi Nancy,
Hi Nancy,
No, alimony will not count against your SSDI income. But if you are earning enough alimony, your SSDI benefits could be taxed.
I do not qualify for ssi. I
I do not qualify for ssi. I only qualify for back pay I'm still waiting for the last payment and in between that time I will inherits some money. Do I still need to notify ssi??
In reply to I do not qualify for ssi. I by Elizabeth (not verified)
Hi Elizabeth,
Hi Elizabeth,
If you are not receiving monthly SSI checks, you may not have to report that inheritance. The back pay is for months that you were eligible for benefits but did not receive them.
I currently draw SSDI and I
I currently draw SSDI and I am looking at a potentially large payout on a lawsuit. The lawsuit involved the state of Washington (DSHS) shorting in- home care providers on their wages. I already received an initial payout of approx. $650.00 for back wages and am looking at a second payout that has the potential to be in the thousands. Would the second payout ALSO be considered wages and if so, how would that effect my SS payments? Thanks
In reply to I currently draw SSDI and I by Russ (not verified)
Hi Russ,
Hi Russ,
That's a very interesting question! I would say that if you received that money from a settlement rather than as part of a paycheck, it may be considered unearned income rather than earned income.
My dad died im on SSDI can i
My dad died im on SSDI can i be the case administrator of his trust.?
In reply to My dad died im on SSDI can i by Peter Jones (not verified)
Hi Peter,
Hi Peter,
I'm sorry for your loss.
If you get paid to be the case administrator of your father's trust, it may be considered earned income, and as such it would count toward the Substantial Gainful Activity limit.
My family member receives SSI
My family member receives SSI and SSDI. Is getting a $5000 inheritance from deceased person. We understand SSI is effected by resources over $2000.
Question 1: Can the inheritance be signed over to another family member, and if so must it be reported?
Question 2: Can the SSI recipient use a portion of the inheritance for college tuition as a spend down?
Question 3: During the period of spend-down, does the SSI recipient lose Medicaid?
Question 4: What are other options? I understand PASS and IDA savings require either employment or extensive application to a government program?
In reply to My family member receives SSI by Karen (not verified)
Hi Karen,
Hi Karen,
1) That would have to be reported, but the inheritance would count as income, not resources, for the month that he recieved it. After that month, it would become a resource.
2) He may be able to use the inheritance to pay for the tuition, I would contact his SSI case worker to confirm.
3) As Medicaid is administered by the state, it would depend on the particular state's regulations on coverage.
4) He may be able to set up a special needs trust as well, those types of trust may not be counted as a resource for SSI. you can find some more information here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
what happens if my
what happens if my inheritance is say 2 million dollars and im on ssdi, and i receive over 50000 in intrest from dividends , do i have to report that, and how will that effect my ssdi/medicare benifits
In reply to what happens if my by Raymond (not verified)
Hi Raymond,
Hi Raymond,
You should be fine if that money is considered unearned income, as there is no limit for unearned income for SSDI recipients. I would contact the SSA just in case. Also, you would still be covered under medicare if you would still be otherwise eligible.
I have a disability and I
I have a disability and I also get medicaid, SNAP food stamps, and section 8 how does this effect my inheritance?
In reply to I have a disability and I by nance (not verified)
Hi Nance,
Hi Nance,
Depending on the amount of the inheritance it may disqualify you for those benefits it it brings your resources or income over the limits for each of those programs.
This is complicated and
This is complicated and getting an answer has been hard. Please help. My husband and I are physically disabled and under 45 years of age. My husband is on Supplemental Security Income (SSI) benefits ($30 per month), and no SSDI. He also gets a small amount from supp. welfare ($17 per m) and medicaid insurance. I am slightly different, I paid in taxes through working so I'm on Social Security Disability Income (SSDI) (about $1000 per m) benefits and SSI benefits ($30 per m). I also get a small amount from welfare ($17 per m) and Medicare + Medicaid Insurance picking up the extra. Also, we are on SNAP benefits. What happens to our income and medical benefits if my husband's family leaves him and only him an inheritance of over $20k? Do we both lose all our medical coverage as well as our SSI and my SSDI payments? Is there a limit to how much money we can have if we give up all the supplemental income and snap benefits? Can we keep the SSDI income? Help?????? Calling Social Security can be a nightmare to get a same answer twice. Any advice?
In reply to This is complicated and by sapphira (not verified)
Hi Sapphira,
Hi Sapphira,
Your SSDI benefits may not be affected by the inheritance due to the fact that your SSDI benefits are based off of your own work record, but the inheritance may be counted as income for the month your husband receives it and a resource for the months after that.
In reply to Hi Sapphira, by Bryan
I get SSDI and am also on
I get SSDI and am also on medicaid and medicare. My father passed in 2011 and my brother wants to sell his house before it forecloses due to a reverse mortgage. After talking to the realtor we would get about 5,500 each. How would that affect my benefits and if it will affect my benefits and I have the money sent to my son instead would I be ok then? Any advice would be appreciated.
In reply to I get SSDI and am also on by Michelle (not verified)
Hi Michelle,
Hi Michelle,
As Medicaid is a needs-based program, it may change your eligibility for Medicaid. If you're getting both SSDI and SSI, it may change your eligibility for SSI.
In reply to Hi Michelle, by Bryan
In reference to previous
In reference to previous comment I only get ssdi not ssi with that being said would my medicaid or medicare be affected? And if so would there be a problem having the money made out and sent to my 19 yr old son?
In reply to In reference to previous by Michelle (not verified)
Hi Michelle,
Hi Michelle,
Your Medicaid may be affected, but since it's a state run program, I would not be able to be specific as different states have different regulations. I would say if you did have the inheritance made out to your son, you may not run into any problems with you SSDI as that is based off of your work record and not your income or resources.
Will a person lose their
Will a person lose their benefits if they get internet
In reply to Will a person lose their by Scott (not verified)
Hi Scott,
Hi Scott,
It might not affect your benefits if you do, but I would talk to your local SSA office to check. You can find a listing of local offices here:
http://www.disability-benefits-help.org/social-security-disability-loca…
How about the same situation
How about the same situation but concerning medicaid?
In reply to How about the same situation by Annie (not verified)
Hi Annie,
Hi Annie,
If you're getting SSDI payments, those would not be affected by medicaid.
If my husband adds my name to
If my husband adds my name to his business will that disqualify me from ssid?
In reply to If my husband adds my name to by Rita (not verified)
Hi Rita,
Hi Rita,
If you are receiving SSDI benefits, then it would only affect your disability benefits if you are able to perform substantial gainful activity as defined by the SSA. You would be able to be part owner and make an income (profits from being part owner), however you may not necessarily be able to perform work for that income.
If you are receiving SSI benefits, then you may have your benefits affected by being a part-owner in your husband's business, the SSA determines SSI based on income and resources, and being part owner of a business may increase both over the limits for SSI.
I don't know if I'm
I don't know if I'm on the right blog but I have a question...If someone on ssi gets married and there soon to be husband works will the person getting ssi lose her benifits???
In reply to I don't know if I'm by Kay (not verified)
Hi Kay,
Hi Kay,
Their SSI benefits will be calculated with the household income and resource limits, so if the working spouse's income and resources exceed the income and resource limits, the SSI beneficiary may lose their benefits or have them reduced.
Will money i receive from a
Will money i receive from a car wreck effect my ssdi
In reply to Will money i receive from a by Anonymous (not verified)
It will not. Settlements are
It will not. Settlements are considered unearned income, so this will not affect your benefits.
If I am covered by Medicare
If I am covered by Medicare and Medi-Cal due to my SSDI benefits and receive a monetary gift from my mom, will my healthcare coverage be affected?
In reply to If I am covered by Medicare by Roz (not verified)
Hi Roz,
Hi Roz,
Your Medi-Cal may be affected if the monetary gift affects your income and resources. I would contact the state Medicaid office to check how specifically it would affect your eligibility.
My friend daws ssi and ssa
My friend daws ssi and ssa do you have to report money if your granny left you the benfirary and how much can you recieve without report it
In reply to My friend daws ssi and ssa by hoss (not verified)
Hi there,
Hi there,
yes, you would have to report that money, regardless of amount as the SSA uses your income and resources to calculate SSI benefits.
Will an inheiretance or being
Will an inheiretance or being a beneficiary to a government retirement be kept when the other person dies and you are on SSDI and Medicare.
In reply to Will an inheiretance or being by Charles (not verified)
Hi Charles,
Hi Charles,
Yes, you may be able to keep an inheritance or receive benefits from a government retirement plan while getting SSDI benefits and Medicare
I am on SSDI and my friend
I am on SSDI and my friend passed away and left me a annuity life insurance for 12,995 will the money affect my monthly payments and do i have to report it.
In reply to I am on SSDI and my friend by BETTY (not verified)
Hi Betty,
Hi Betty,
If you are on SSDI, it would not affect your payments as that may be counted as unearned income. I would still contact the SSA and let them know about it just in case.
If someone gets SSI and SSDI
If someone gets SSI and SSDI and a family property is sold and they recieve $20,000 from it, does she lose the SSI? What if she takes the money and buys a small home with it. Does she still lose it or does she get to keep it and also buy home with the money.
In reply to If someone gets SSI and SSDI by Beth (not verified)
Hi Beth,
Hi Beth,
That person would lose their SSI benefits for the month that they receive the money, and it would be considered a resource for the months after that, so they may lose the SSI. I would have that person contact the SSA, they can absolutely buy a home with that money and stay on SSI, but it's a good idea to make sure the people at the SSA would know about the change in housing and income/resources.
My mom owns working farm land
My mom owns working farm land. My sister and I are part owners but only get 1.5% at the moment. Upon her death the farm is to be sold to the person that actually farms the land and the income is to be divided between both my sister and I. I am on SSDI, how will that affect my benefits if I am not doing the work?
In reply to My mom owns working farm land by Laura (not verified)
Hi Laura,
Hi Laura,
I'm happy to say that it might not affect your income at all! As you're on SSDI, the SSA does not have a cap on the amount of unearned income (like inheritances) that you would be able to have.
In reply to My mom owns working farm land by Laura (not verified)
Hi Laura,
Hi Laura,
I'm happy to say that it might not affect your income at all! As you're on SSDI, the SSA does not have a cap on the amount of unearned income (like inheritances) that you would be able to have.
It's sad, that people
It's sad, that people who are on disability, barely financially make it, I feel if thier love one died and left them five hundred or 1200. Dollars, the government should not be allowed to Robb them of such a gift from a dead loved one, thus penalizing the handicapped, for this, it's so criminalizing.
In reply to It's sad, that people by Lafaye Martha … (not verified)
Hi Lafaye,
Hi Lafaye,
It is! That's why it's important to stay informed about disability benefits.
My significant other's
My significant other's son is on SSDI and SSI. He currently lives in a rental house. My significant other has made a will to leave his estate to his disabled son in a special needs trust. The estate consists of a house and perhaps about $5,000 in cash once debts are settled. If my significant other's disabled son moves into the house after he inherits it, will he be able to continue receiving his SSI?
In reply to My significant other's by Rosemary Little (not verified)
Hi Rosemary,
Hi Rosemary,
That's a great question! Assets in a special needs trust, such as a house, may not be counted as income or resources for the purposes of SSI benefits, so he may still be eligible.
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