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
My mother passed after a long
My mother passed after a long battle with Cancer, January 2016. in her will she named my sister and I as co executors. I am disabled and receiving social Security Disability, not SSI. Can I share in the administration fees without it affecting my benefits? I have been disabled since 1996. Thank you
In reply to My mother passed after a long by linda (not verified)
Hi Linda,
Hi Linda,
I'm very sorry for your loss. I can imagine that it's been pretty hard. Since you're on SSDI rather than SSI, you may be able to share that admin fee with your sister. It may be a good idea to reach out to the SSA about this though, because they may count this as earned income rather than unearned income.
I need help I am very ill
I need help I am very ill with Lupus,ITP (low platelets) ,RA, diabetes. I collect both SSI and SSD i am 66 now and my mom is concerned if she passes away can she leave me any inheritance without it affecting my income. What will happen to me if she does.
In reply to I need help I am very ill by Tamura Harris (not verified)
H Tamura,
H Tamura,
You may be able to have that inheritance set up in a special needs trust, which would allow you access to your mother's inheritance without losing SSI benefits. You can find more info here: https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
I am on social security
I am on social security disability & my father recently passed away leaving my family life insurance that is in my mother's name but my father wanted us to all have a portion of the money. Will this affect my social security disability if I get my portion of the inheritance? I just want to put it in a bank savings account?
In reply to I am on social security by Jayla (not verified)
Hi Jayla,
Hi Jayla,
I'm very sorry to hear about that. With SSDI benefits based off of your work record, you would not have any change in benefits. If you get SSI income based benefits, then you may experience a change in benefits. However, you can put that money in a special needs trust for SSI. You can find some more info here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
Hello, I now recieve SSDI and
Hello, I now recieve SSDI and medi care at present time, a insurance co, who handled my workers comp claim back in 1999, is now offering me a buy out of my future medical, for $10.000, will this type payment affect my SSDI, or medi care? I'm 65 yo now and was born 1951, I believe, next year my SSDI changes to SSI?? would another lump sum or gift of cash affect my SSI benefits then?? thanx !!
In reply to Hello, I now recieve SSDI and by Patrick F. (not verified)
Hi Patrick,
Hi Patrick,
This will not count as earned income, so this will not affect your SSDI or Medicare.
I am receiving SSI and my
I am receiving SSI and my father is passing away and wants to leave me a house and about 25K. If he puts the house in my name is that considered income? My brother is executor on the estate and he is saying that I could get a special needs trust and he will dole out about $1250 a month so I won't go over $2000. one problem is I don't know if this will work and I can trust my brother. Don't know how house will affect anything. Also, he wont produce the will and says I should just trust him and his financial planner. Could really use some help in figuring the out. Any advise?
In reply to I am receiving SSI and my by Dee (not verified)
Hi Dee,
Hi Dee,
Yes, a special needs trust would allow you to receive the inheritance without being made ineligible for SSI benefits. Unfortunately I really can't give you any more advice for how to deal with your brother as I would not have much insight into the family law aspects of your case.
My father past away in May, I
My father past away in May, I am the successor trustee on his living trust. My brother is in the trust as an heir, my question is he has been on SSI and Medicaid, food stamps ect. For over 40 years now will he be cut off all public assistance if he receives his portion of the trust.
In reply to My father past away in May, I by Bill (not verified)
Hi Bill,
Hi Bill,
I'm sorry to hear about that. I cannot say regarding his food stamps( I would contact the office that administers them in his state to check), however certain types of trusts are not considered income for a SSI recipient. Here's some more info about those types of trusts:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
QUESTION:
QUESTION:
Jane Doe receives SSDI, & was recently divorced! In the divorce decree, through a QDRO, Jane Doe received 401k proceeds from her ex's 401k! Jane Doe received a check, lump sum, from the QDRO! She was advised to roll the proceeds over into an IRA account! Which she initially did! Jane Doe fell behind financially & slowly withdrew funds from the IRA account! The lump sum received by Jane Doe had taxes taken out the sum total & each time she withdraws, she has taxes 10% of the withdrawal taken out for IRS! Jane has been told that she has to report the withdrawals as income and it may affect her SSDI! Jane's question: Will the fund received due to the QDRO affect her SSDI? Will her having established an IRA, and subsequently withdrawn from that account to meet financial needs, affect her SSDI? Will anything mentioned in the course of her tranactions result in her losing her SSDI or having it reduced??
Eagerly awaiting response
Jane
In reply to QUESTION: by Jane Doe (not verified)
Hi Jane,
Hi Jane,
For SSDI, the SSA does track income, but there are two types: "earned" and "unearned" income. Earned income is money obtained from working. The SSA has limits on this income because they consider you not disabled if you're able to earn over the limit for SSDI. Unearned income is income from stocks, bonds, rent paid to you, or profits from a business that you own but do no work for. I would report the income to the SSA, but this income may not affect your eligibility as it may be considered unearned income.
If I am named as my mother&
If I am named as my mother's benificary POD, does this count as an asset for me. Or can I apply for disability for as long as I am insolvent?
In reply to If I am named as my mother& by Diane (not verified)
Hi Diane,
Hi Diane,
You do not need to be insolvent to apply for SSDI or SSI benefits, you just need to meet the medical requirements for both, and meet work history requirements for SSDI and the income and resource requirements for SSI. being your mother's beneficiary may not make you ineligible for SSI disability benefits, but in would count as income for the month you would receive it and a resource after that.
.I'm on Sat I need a car
.I'm on Sat I need a car my mom died she left me some money she also said buy the car of your dreams I baught a 10.000. Dollar corvette can they deduct that money so only report the rest of the inheritance
In reply to .I'm on Sat I need a car by Anonymous (not verified)
Hi there,
Hi there,
I'm sorry for your loss.
Your inheritance may count as income for the month that you receive it. I would report the inheritance to the SSA, they can best advise you as to how to stay eligible for benefits.
My father recently passed
My father recently passed away and he was receiving SSDI benefits. 15 years ago my grandfather added my father to his estate (property). The Will and estate will be entering the probate process. My questions is : does SSDI have the right to put a claim against my father's estate? To obtain any benefits that were paid out over the years that my father received SSDI benefits?
In reply to My father recently passed by Frank (not verified)
hi Frank,
hi Frank,
Unless your father was overpaid by the SSA, you may not have the SSA putting a claim on your father's estate.
if i sell my car and invest
if i sell my car and invest the money will it affect my ssdi
In reply to if i sell my car and invest by deb (not verified)
Hi Deb,
Hi Deb,
If you sell your car while receiving SSDI benefits, there may be no change in your SSDI benefits.
So what you are saying
So what you are saying basically that if I am on SSDI, and receive a small cash inheritance, and put it in the bank, I would not lose my Medi-cal? Even if then what I have in that bank accoutnt, due to the inheritance is over the $2000 limit? That is correct,right? I assume thats because i am NOT on SSI~ but rather am on SSDI (?)
In reply to So what you are saying by Roseanne (not verified)
Hi Roseanne,
Hi Roseanne,
The $2000 asset limit that you're reffering to does not apply to SSDI beneficiaries like yourself. However, I'm not entirely sure about Medi-cal, if it's a state medicaid program you may be subject to income limits. However, with SSDI you do qualify for Medicare benefits after two years. If you receive Medi-cal benefits as part of Medicare, they may not change due to inheritance.
I currently recieve ssa and
I currently recieve ssa and ssi for becoming blind a few years ago. My recently passed away and left his estate to my brother and I to split. $300,000 home he owned and a few nice vehicles. What do I need to continue recieving my benefits?
In reply to I currently recieve ssa and by Scot (not verified)
Hi Scot,
Hi Scot,
Your inheritance would be counted as income for the month you receive it and a resource for the months afterward. Because of this, is may be a good idea to look into trusts to preserve your SSI eligibility. You can find this information here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
I am 61 and have been on SSDI
I am 61 and have been on SSDI since 2011. I will be receiving an inheritance which will around $35,000. I live in the State of FL and because of my income, I qualify for the Extra Help Program which helps me pay a lower amount for my prescriptions. Do I need to contact the SS Office about this?
In reply to I am 61 and have been on SSDI by Debbie (not verified)
Hi Debbie,
Hi Debbie,
You may want to contact the SSA about this, there are ways to make sure that you stay eligible for benefits. You can find some more information here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
My sister in law is going to
My sister in law is going to inherit money from her dads estate. Will this effect her ssi. Whzt if it is put in a trust fund or should she decline the inheritance?
In reply to My sister in law is going to by Joanne (not verified)
Hi Joanne,
Hi Joanne,
Your sister in law may be able to keep her SSI benefits if she puts it in a trust fund. You can find some more information here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
My ex who is on ss from
My ex who is on ss from stroke. Now our son who will be moving in also on Ssdi His Dad is freakin out about not giving a receipt for rent of fear of effecting his ss. Son gets 863. Pays 300 for rent But now Dad wants to make him pay water bill, and idk what else right now
My son says he hates it there, unfortunately he can't be with me yet we live in 2 diff states. I think in time he will come to live with me
In reply to My ex who is on ss from by Debra (not verified)
Hi Debra,
Hi Debra,
I'm sorry to hear about that! You may want to contact the caseworker that handles your son's case, they may be able to help him with housing if needed.
My husband is on SSi. I may
My husband is on SSi. I may receive an inheritance and I want to pay off our home, will he lose his benefits?
In reply to My husband is on SSi. I may by Judi (not verified)
Hi Judi,
Hi Judi,
He may as benefits are calculated based off of combined income for married households.
My mom is on SSI. She
My mom is on SSI. She inherited a house recently. She lives in that house. It is her only home. Will this take away her SSI? She has no other source of income and this is her only place to live.
In reply to My mom is on SSI. She by Lynn (not verified)
Hi Lynn,
Hi Lynn,
Your mother may be able to keep that home and receive SSI, it may be a good idea to contact the SSA regarding the inheritance if she had not already.
THIS IS MY SITUATION. MY
THIS IS MY SITUATION. MY DAUGHTER LIVES IN A PEDIATRIC SUB ACCUTE FACILITY. MOSTLY BECAUSE SHE'S BEEN MEDICALLY UNSTABLE HER ENTIRE LIFE. BUT THINGS CHANGED AND CURRENTLY SHE HAD BEEN STABLE FOR A SOLID YEAR NOW AND IS ACTUALLY NOW FINALLY ABLE TO BE DISCHARGED AND NOW FINALLY I WILL BE READY BECAUSE I'M GOING TO RECEIVE MY SHARE OF MY FATHER'S INHERITANCE FROM THE HOUSE BEING SOLD. IT IS AN INHERITANCE. I CAN BRING MY DAUGHTER HOME, BECAUSE I WILL ACTUALLY BE ABLE TO RENT OR BUY A HOME SUITABLE FOR HER : ) SO DO I HAVE TO REPORT MY INHERITANCE TO SSI SO I CAN STILL RECEIVE HER BENEFITS? (IT'S LITERALLY ONLY $50) BUT I DO WANT TO KNOW. DOES THIS EFFECT ANYTHING LEGALLY I WANT TO KNOW WORTH MY EXACT SITUATION WHAT HAPPENS NOW? PLEASE ADVISE. THANK YOU : )
In reply to THIS IS MY SITUATION. MY by Angel Ann (not verified)
Hi Angel,
Hi Angel,
Your inheritance may affect her eligibility for benefits because SSI is an income-based program and inheritances do count as income. It may be a good idea to contact the SSA caseworker involved with your case.
If my mom is on SSI and
If my mom is on SSI and receives an inheritance of $20,000 can she gift any of this money to her children? If not can she use some of this money to purchase gifts for her children?
In reply to If my mom is on SSI and by Cathy (not verified)
Hi Cathy,
Hi Cathy,
That money may still be considered income for the month she receives the inheritance. She can absolutely do so, however it may be a good idea for her to look into a special needs trust. Here's some more info:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
can you be on ssi and have
can you be on ssi and have ssd solely as a designation and not collect on the ssd.
my wife is disabled for over 20yrs but has not worked so she doesn't qualify for the ssd money benifit, however she id on ssi but will be getting an inheritance well over the ssi limit. She is disable by the ssa but doesnt get the ssd, basically can she get ssdi without recieving funds from ssd, i know this sounds quirky thanks
In reply to can you be on ssi and have by al sgro (not verified)
hi Al,
hi Al,
I've never really heard of that, but if they are otherwise eligible for SSDI, then they may be able to receive SSI if they are eligible.
I have a son who was
I have a son who was hospitalized when he was 18 for 20 years. He is now 52, he now resides in an Asssisted Care facility. I am his payee appointed by the courts. We have just learned that he is getting an inheritance from one of his relative. Will he loose his benefit because of this. He get an auto deposit check the 3rd od each month and most of that goes for his care. He has medicare and Humana for perscriptions which he gets help when his meds reach the limit. I am so confused on what to do. Claim or Not. Hope you can help. I know there is no tax on the inheritance.
In reply to I have a son who was by Trena (not verified)
Hi Trena,
Hi Trena,
If your son receives SSI benefits, then yes, there may be a change in his benefits. However, there are methods to keep his eligibility. Take a look at this resource here:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
I forgot to mention that my
I forgot to mention that my son collects ssd from his father earnings who passed away more then 20 years ago.
In reply to I forgot to mention that my by Trena (not verified)
Hi Trena,
Hi Trena,
In the case of SSDI benefits, there are not unearned income limits and as such his benefits may not change.
If you're on SSI &
If you're on SSI & get an inheritance & report it, what do they do? Do they take the inheritance? Do you lose all your benefits, like medical? Thanks for the help!
In reply to If you're on SSI & by Hopkins Mommy (not verified)
Hi there,
Hi there,
You do not immediately lose all benefits, however there are things you may want to do to ensure you keep your benefits. Here's a bit more information:
https://www.ssa.gov/pubs/EN-05-10137.pdf
I's your parent's
I's your parent's pass away and you become trustee to their trust, will this disqualify you from continuing to receive disability and medicare?
In reply to I's your parent's by Colleen (not verified)
Hi Colleen,
Hi Colleen,
If you are receiving SSDI benefits, then there may be no change in benefits if you became a trustee. However, it may be a good idea to contact the SSA and enquire if they consider being a trustee to be a work activity.
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