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 2024, SGA is considered to be earning $1,550 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
This is not strictly speaking
This is not strictly speaking an inheritance as my parents are still alive, however, my son is on SSI and my husband and I are divorcing, my parents are giving me a large lump sum to go directly as a deposit on a house for my son and I, so we will not have cash in hand. Will he lose his SSI because of this. (I earn $9/Hr)
In reply to This is not strictly speaking by Sgreen (not verified)
Hi there,
Hi there,
if your child is eligible based on your income and resources, your child may have a change in their benefits based off of the money given to you by your parents.
In reply to Hi there, by Bryan
Even though it is not cash?
Even though it is not cash?
In reply to Even though it is not cash? by Anonymous (not verified)
Hi there,
Hi there,
even though a house or real estate is not cash, it is still a resource for the purposes of the SSA and they calculate eligibility based off of income and resources.
I receive ssi.and owe child
I receive ssi.and owe child support may possibly inherit small amount of money does money go directly to child support if so do I have to still let social security know as it will not be given to me
In reply to I receive ssi.and owe child by Mary (not verified)
Hi Mary,
Hi Mary,
Yes, you should let the SSA know, as they determine benefits based off of income, and that inheritance is considered income by the SSA.
Hi. I have a sister on SSI.
Hi. I have a sister on SSI. (there are 6 of us children) Mom is still alive. We currently have everyone split equally in her will. We are working on having it changed to protect my sister from losing her SSI's benefits. What is our best course of action? Completely keep her out of it as a beneficiary & establish some kind of trust? Would a trust keep her from losing her benefits? We want to ensure as she ages & may need special medical equipment, etc that her needs will be met.
In reply to Hi. I have a sister on SSI. by Elise (not verified)
Hi Elise,
Hi Elise,
A trust may be a good idea, here's some more info about them from the SSA:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
MY DAD IN HIS EARLY NINETY&
MY DAD IN HIS EARLY NINETY'S IS ON SSI AND SOCIAL SECURITY DISABILITY. HE SON DIED WE SUED THE HOSPITAL AND MY FATHER IS RECEIVING A LARGE AMOUNT OVER $70,000.00 FROM MY BROTHER LAWSUIT. WILL HE BE ABLE TO RECEIVE HIS SSI, SOCIAL SECURITY DISABILITY CHECK, MEDICARE AND FOODSTAMPS?....DO I HAVE TO NOTIFIED SOCIAL SECURITY ABOUT MY DAD GETTING THIS AMOUNT?
In reply to MY DAD IN HIS EARLY NINETY& by PWYoung (not verified)
Hi there,
Hi there,
I am sorry for your loss.
Yes, you father should report that income to the SSA, as it would be considered income for the month it was received, and a financial resource for any subsequent months.
In reply to Hi there, by Bryan
His father is 90 years old
His father is 90 years old and receiving ssi and ssd, wouldn't he just be getting ss as he is way past retirement age. or is it because possibly that he never worked so he don't qualify for ss? Just wondering.
In reply to His father is 90 years old by Di (not verified)
Hi Di,
Hi Di,
It is true that you would not be eligible for SSDI benefits past retirement age, but that does not affect eligibility for SSI benefits.
I receive SSI and SSDI
I receive SSI and SSDI benefits. If my parent leaves me an inheritance of the family home and 100,000. Can SSI and SSDI take my inherited home and funds given to me by my parent ? What will happen to the benefits if I receive the home and funds ? I will be cut off of SSI but will I also be cut off of SSDI ?
In reply to I receive SSI and SSDI by Jem Harper (not verified)
Hi Jem,
Hi Jem,
If you receive these funds, you will lose your SSI benefits, but your SSDI will remain the same!
What happens if I am
What happens if I am beneficiary of my son life insurance policy, and I'm on disability.
In reply to What happens if I am by Betty (not verified)
Hi Betty,
Hi Betty,
If you're on SSDI, then you should be all set as SSDI is based off of your work record and not income or resources.
If I am on SSDI, and I am
If I am on SSDI, and I am forced to accept easement money from utilities to install more lines, do I need to report that?
In reply to If I am on SSDI, and I am by Susan (not verified)
Hi Susan,
Hi Susan,
No, as income and resources are not qualifying criteria for SSDI.
My sister is receiving SSDI
My sister is receiving SSDI benefits. My mother passed away and 1/4 of her estate will pass on to my sister. I realize that inheritance is unearned income and hence doesnt typically impact SSDI benefits. However, to confirm, we had planned to put the money into a SPIA so that she will receive the payout over her lifetime. Does that change the situation at all?
In reply to My sister is receiving SSDI by deb (not verified)
Hi Deb,
Hi Deb,
Don't worry about this. An inheritance will NEVER affect SSDI benefits.
If receiving inheritance
If receiving inheritance while receiving SSDI benefits is ok...then why the rule of no more than 2,000.00 in a savings account? Where does inheritance money have to be deposited?
In reply to If receiving inheritance by Michael Facer (not verified)
Hi Michael,
Hi Michael,
SSDI and SSI are different programs, and that limit is only for SSI recipients.
My mom is on SSI and is about
My mom is on SSI and is about to inherit $10,000 from the passing of her parents. She does not want to effect her SSI. She mentioned signing all money to her grandkids for college fund. Can that be done. If not what are her options. Please advise.
In reply to My mom is on SSI and is about by ANGEL (not verified)
Hi Angel,
Hi Angel,
I'm sorry to hear about her parent's passing. The inheritance would be counted as income for her for the month she receives it, and then if she transfers it, she may become ineligible for benefits for a period of time. You can find some more information about transferring financial resources here:
https://www.ssa.gov/ssi/spotlights/spot-transfer-resources.htm
my husband is on disabilty i
my husband is on disabilty i have a gift of a amount of money coming to me will it affect his disabilty
In reply to my husband is on disabilty i by karen (not verified)
Hi Karen,
Hi Karen,
If he is on SSI, then the money may be considered income for the month that he receives it and a financial resource for any months after that.
My fiance recently got on ssi
My fiance recently got on ssi. He recently lost his mother and is awaiting and inheritance. Is there any way he can sign his portion to me and I can get it to avaiod ssi? Is there any way around a special needs trust? What exactly does a special needs trust allow? And will he be a blessing to spend as needed?
In reply to My fiance recently got on ssi by Michele (not verified)
Hi Michele,
Hi Michele,
Signing his portion over to you may affect his benefits, but a trust may be the way to go. The trust may not be entirely accessible to him, however here's some more info on trusts for SSI recipients:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
So if I am on SSI and land is
So if I am on SSI and land is put into my name but not sold does that affect payment of ssi benefits?
In reply to So if I am on SSI and land is by John (not verified)
Hi John,
Hi John,
Land may considered a financial resource, so it may affect your eligibility for benefits.
Hi, My Aunt is the recipient
Hi, My Aunt is the recipient of an inheritance (Over $50K). She has been on State Assistance and is receiving approximately $700/month and is on Medicaid. Can she "gift" the inheritance to someone else and not impact her ongoing benefits? If so, is there a time frame in which she must gift the money - 30/60/90 days?
In reply to Hi, My Aunt is the recipient by Phil (not verified)
Hi Phil,
Hi Phil,
She may not be able to gift it as that could make her ineligible for benefits. However there are certain types of trusts and savings accounts you can have while on SSI that can have more than the $2,000 limit in them. Here's some more info:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
Hello I'm am currently
Hello I'm am currently receiving to checks Ssi and ass if I get a inheritance from my dad's estates which one does the inheritance effect
In reply to Hello I'm am currently by Shari Leatherman (not verified)
Hi Shari,
Hi Shari,
if your disability benefits and state assistance are based off of your income and resources, and inheritance may affect both of them.
Hello I'm currently
Hello I'm currently receiving Ssi and Ssa my husband passed away 5 years ago I dint know which one would be affected by a large inheritance which one is considered disability Ssi or Ssa I'm confused what is ssdi
In reply to Hello I'm currently by Shari Leatherman (not verified)
Hi again Shari,
Hi again Shari,
your SSI payments may be affected by an inheritance.
I am on ssdi and my car
I am on ssdi and my car broke down so my nepew said I can by his car and he will take payments it is worth 7,000. Dallers can I have it if I make small payments.
In reply to I am on ssdi and my car by natalie (not verified)
Hi Natalie,
Hi Natalie,
We are not affiliated with the SSA, so we wouldn't be able to give you approval to buy that car. However, if you call the SSA at 1-800-772-1213, they can help you further regarding any restrictions on spending for your disability benefits.
My grandfather who passed
My grandfather who passed away more than twenty years ago I just have found out that I have an inheritance from him. It's under $10,000 my question is will it affect my SSI housing and food stamps. Recently my car blew up and I've been praying for some money to get a new vehicle. I am disabled can you tell me where to look for answers or give me an answer will it affect my benefits
In reply to My grandfather who passed by Cheryl (not verified)
Hi Cheryl,
SSI is a need-based disability program meant for those who have little or no income or resources, therefore the increased influx of your income may cause you to loose your benefits/food stamps. I would advise you to call SSA at 1-800-772-1213 for more information. Hope this helps!
my grandma is 88 years old.
my grandma is 88 years old..lives off her ss check every month...she just lost a daughter last month to cancer...she received a letter from the school district that her daughter left her as beneficiary to her 401k plan...she is very confused and scared that she will lose her ss benefits if she cashes the check..we r not sure how much it will be yet but is there a limit to how much she can receive without it affecting her ss check or what should she do
In reply to my grandma is 88 years old. by mandy (not verified)
Hi Mandy,
Hi Mandy,
I'm sorry for your loss.
If your grandmother only gets SS Retirement benefits and not SSI benefits, she should be fine. If she gets SSI benefits, then that inheritance would be considered income for the month that she receives it and a financial resource for all subsequent months.
My brother is on SSDI. He
My brother is on SSDI. He keeps having to move due to landlords selling the places he is renting. It's making him sicker. He has diabetes since childhood. I want to buy him a place in Florida and put him on the deed because most places will not allow renters for the first two years and I won't be living there. Will this affect his SSDI benefits?
In reply to My brother is on SSDI. He by Randy (not verified)
Hi Randy,
Hi Randy,
It may not as SSDI benefits are based off of work history rather than income and financial resource limits.
I recently came into
I recently came into inheritance 2 months ago. I get ssi for my son. Do I have to take him off ssi asap ? Will he still get his medical coverage?
In reply to I recently came into by Beverly Bernard (not verified)
Hi Beverly,
Hi Beverly,
This is an EXCELLENT question, and honestly one I do not feel comfortable answering, as your son's SSI could be at stake. I would highly recommend calling the SSA at 1-800-772-1213 to determine the best thing to do in this situation for your son. You may be able to defer the inheritance to make sure that your son keeps his health insurance.
My ex-husband died over a
My ex-husband died over a year ago. He was a Ward of the State and living in a nursing home. The State took all his assets since he was on SSD. His Mother passed before he did and her Estate was not settled until recently. He was in her will. Does that money have to be turned over to the State or will our adult son be elligable for it?
In reply to My ex-husband died over a by Teresa Breckenridge (not verified)
Hi Teresa,
Hi Teresa,
I would not be able to say as we are not experts in estate law.
I'm on ssi & medical
I'm on ssi & medical I have a lawsuit going on in stead of getting a big lump money but only let's say 2000 a month well I still be able to keep my ssi & medical
In reply to I'm on ssi & medical by jennifer (not verified)
Hi Jennifer,
Hi Jennifer,
You may not stay eligible for benefits depending on your family size and marital status, for a single, childless person an income of over $733 a month may disqualify someone for benefits.
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