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
In reply to hello, im on ssi and will by mary (not verified)
Hi Mary,
Hi Mary,
It's a good idea to report this to the SSA, that money would count as income for the month that you receive it and as a financial resource for any months afterward.
I get disability ::: If my
I get disability ::: If my dad died and left me his house in his will well the government take it or will I get kicked off disability?
In reply to I get disability ::: If my by Lesa (not verified)
Hi there,
Hi there,
That may not be the case, you may want to contact the SSA regarding this to find out what you would need to do in that situation.
I am on SSDI and get Medicaid
I am on SSDI and get Medicaid as second insurance with my Medicare. Will putting 3,000 inheritance in bank will my account be affected and do I have to report it?
In reply to I am on SSDI and get Medicaid by Darla (not verified)
Hi Darla,
Hi Darla,
Your Medicaid eligibility may change, depending on your state's rules. It may be a good idea to contact the office in your state that administers medicaid about this.
Have a sister on disability ,
Have a sister on disability , not sure what type but sounds like it could be SSI, as she has not worked a lot in her life. She is 70 and can barely make ends meet with what she gets and will be inheriting some money from our mom's death . This money will not last her long maybe s couple of years if she is careful but as it is she can barely get her meds , she has heart trouble and diabetes . If she looses her disability I worry what will happen to her . What can she do ?
In reply to Have a sister on disability , by Leslie (not verified)
Hi Leslie,
Hi Leslie,
You may want to look into setting up a disability trust for your sister, as she would have access to the inheritance funds but they would not count toward the SSI income or saving limits.
If my sister inlaw is
If my sister inlaw is collecting SSI and inherits her mothers house will she be forced to sell it by Social Security to pay them back? Even if she moves into the house to live? She is on section 8 right now at a different location, but would live in the house when her mother passes.the hoyse and all thats in it would become hers based on a trust.
In reply to If my sister inlaw is by Cynthia Boullet (not verified)
HI Cynthia,
HI Cynthia,
If it's in a trust, it might be a good idea to contact the SSA as some trusts may be exempt from the income and financial resource limits. You can call them at 1-800-772-1213.
Is there such a thing called
Is there such a thing called a Spin Down on an inheritance fr someone on ssi
In reply to Is there such a thing called by Goldie (not verified)
Hi Goldie,
Hi Goldie,
Yes there is, the Spend Down option is when you spend the funds you had received from and inheritance, settlement, or other large sum of money in order to meet the income and resource limits for SSI benefits.
I'm Payee for my son who
I'm Payee for my son who is 16. Recently my uncle Passed leaving me a large inheritance. With option to get his house.
My Question is will this affect my son's SSI? Or is there an option I can do, so he don't loose his SSI and medical, such as putting in a CD or some other type acct?
In reply to I'm Payee for my son who by JCR (not verified)
Hi there,
Hi there,
It may affect his benefits for the month you receive it and for any months afterward. You may be able to deposit some in a special needs trust which would be exempt from SSI financial resource limits. It may be a good idea to contact the SSA regarding this.
A minor child receiving SSI
A minor child receiving SSI (survivor benefits); receives an insursnce inheritance of more than $50,000.... will her SSI benefits be cancelled?
In reply to A minor child receiving SSI by Carrie (not verified)
Hi Carrie,
Hi Carrie,
The child would be ineligible for benefits for the month that they receive it and any months after that if they are over the financial resources limits for SSI.
I had a question for the
I had a question for the State of California receiving survivor benefits for children?
Why is my kids ssd money get counted towards my house when my children have a payee?
In reply to I had a question for the by Monique Schmerber (not verified)
Hi Monique,
Hi Monique,
I really could not say as we are not affiliated with the State of California,
the SSA, or the Federal government. You may want to contact the SSA at 1-800-772-1213.
My grandfather's brother
My grandfather's brother wants to give him a house but he is getting Social Security disability benefits. will this affect his benefits if he is gifted this house from his brother?
In reply to My grandfather's brother by Tee (not verified)
Hi Tee,
Hi Tee,
If he is on SSDI then his benefits would not be affected.
PA state. My brother is on
PA state. My brother is on SSDI and Medicare parts A,B... He cant lose his health insurance! He is inheriting some money. I know it dose not effect his SSDI but what about Medicare? I have read mix opinions on this. (No effect.. because SSDI and Medicare are linked together., and or that an inheritance effects Medicare.) Some people say the inheritance needs put in a Simple Needs Trust. I have already talked to one attorney and he referred me to another. Looking for advice. What are my brother options. Can he just put this money in his bank or dose a Trust need to be setup? Dose this have any effect on his Medicare? Thanks
In reply to PA state. My brother is on by Donald (not verified)
Hi Donald,
Hi Donald,
I am not positive how it would affect his medicare, I would recommend speaking to a Medicare representative.
I and my son live in a home.
I and my son live in a home. When I bought it I got insurance papers on it covering Edward l. Hazard and I in case of death or disability. He passed on November 7, 2013. And I and my son are disabled. The insurance company will not pay and chase bank is trying to take my home.I need help !!
In reply to I and my son live in a home. by charlene (not verified)
Hi Charlene,
Hi Charlene,
I would recommend speaking to someone at your insurance company regarding that. Wishing you nothing but the best.
IF I RECIEVE SSI WITH MY SSDI
IF I RECIEVE SSI WITH MY SSDI. I AM SOON TO INHERITE 300,000. 0R MORE HOW DOES IT AFFECT MY SSI N SSDI????
In reply to IF I RECIEVE SSI WITH MY SSDI by TRACEY (not verified)
Hi Tracey,
Hi Tracey,
It will affect your SSI benefits as they are based on your income and resources, but your SSDI benefits may not change.
I don't know if I am
I don't know if I am getting SSI or SSD? I am getting an inheritance and need to know if I have to report it.
In reply to I don't know if I am by Patricia LeeFa… (not verified)
Hi Patricia,
Hi Patricia,
You may want to call the SSA at 1-800-772-1213.
I receive Social Security
I receive Social Security benefits (early ret), & still get SSI (or is it now SSDI?). My husband is currently on full SSI benefits. I am second beneficiary to a skipping trust fund which had been set up by my parents. The actual beneficiaries are my brother's two children. My brother & I are second beneficiaries; we receive a certain portion of the fund. I want to know how this trust would affect my SSA/SSI (SSDI?) benefits.
In reply to I receive Social Security by Ila (not verified)
Hi Ila,
Hi Ila,
If you receive SSI, then your benefits may be reduced one dollar for every two dollars in income that you receive, you may want to contact the SSA regarding this as they would be able to give you detailed information specific to your case.
I receive disability checks
I receive disability checks and if I receive an inheritance will it affect what i receive now
In reply to I receive disability checks by Vikki (not verified)
Hi Vikki,
Hi Vikki,
If you are on SSDI then it won't but if you are on SSI it could.
I live in California, and
I live in California, and receive SSDI. I recently received an inheritance and put it in the bank. I received a letter saying I no longer qualified for extra help with my prescriptions, and that I need to fill out an application to see if I still qualify for extra help with prescriptions. They want to know my amount in the bank. are they able to know , if I don't disclose that. and does the inheritance disqualify me for extra help? Thank you
In reply to I live in California, and by L Smith (not verified)
Hi There,
Hi There,
I really can't say for sure, I would recommend speaking to a Social Security advocate.
Best Wishes,
I receive ssd benefits along
I receive ssd benefits along with Medicare. My uncle left money of 20k which I have to pay taxes on as income. Will I lose my benifits
In reply to I receive ssd benefits along by Cathleen (not verified)
Hi Cathleen,
Hi Cathleen,
If you are receiving income based benefits, you may as that would be considered income. If you're receiving benefits based on your work record, then it may not be affected.
If my brother left me $10,000
If my brother left me $10,000 inheritance and I get SSI how will that affect my income. I am also on Section 8 housing. Can I disinherit this and give it to my 2 nieces to split and I will be ok???????
In reply to If my brother left me $10,000 by Kathy Flynn (not verified)
Hi Kathy,
Hi Kathy,
That money would be income for the month you receive it, and a financial resource for months after that. You would become ineligible for benefits for the months that you have that money, but once you're under the income and resource limits, you'd start receiving benefits again.
What happen if the IRS has
What happen if the IRS has giving the following information to the welfare about unearned income by the bank.
In reply to What happen if the IRS has by Roise (not verified)
Hi Rosie,
Hi Rosie,
I really could not accurately say. I would recommend calling your local DTA office.
In reply to What happen if the IRS has by Roise (not verified)
Hi there,
Hi there,
You may want to check in with the SSA regarding this, as you can earn unearned income while on SSDI, though there are some limits.
Hello, I'm on SSI my
Hello, I'm on SSI my mother just passed away last month, she has a living will trust she left me and my sister a annuity that will split between us. my half would be around 7,000 give or take, can i open a " special needs " trust fund or keep it the family living trust, its just me and my sister now she is the executor on it. Reason i ask selling my mothers house and i need to find a place to live now, i have less than a month and what i get a month won't even pay rent on a place!
In reply to Hello, I'm on SSI my by Bob. R (not verified)
Hi Bob,
Hi Bob,
A special needs trust will exempt that money from SSI financial resource and income limits. You may want to contact the SSA regarding this as they can give you information about what standards they would accept for exempt trusts.
I know someone who is on SSI
I know someone who is on SSI and got 250,000 and never reported it
In reply to I know someone who is on SSI by Gena (not verified)
Hi Gena,
Hi Gena,
Any additional income received should always be reported to the SSA.
I am on ssdi and Medicare
I am on ssdi and Medicare hardship plan. I inherited 50,ooo.00 and was wondering if the inheritance would affect my hardship plan as I can only get 1,238.oo of earned income. I currently receive 1,018 of ssdisability income. Will my inheritance cause me to no longer get the hardship plan through medicare?
In reply to I am on ssdi and Medicare by Audrey (not verified)
Hi Audrey,
Hi Audrey,
I would recommend speaking to someone at the Medicare office regarding that.
If my daughter is on SSI and
If my daughter is on SSI and her grandmother leaves her a house in her will does it affect her ssi
In reply to If my daughter is on SSI and by Dawn (not verified)
Hi there,
Hi there,
It will, as it would be considered income the month that she receives it. If she lives in the house, however, it would be considered a residence, which the SSA does not count toward financial resource limits. You may want to contact a local SSA office for information specific to your daughter's case.
Is (non professional)
Is (non professional) successor trustee compensation considered as earned income for those who receive social security disability? Would it effect my ssdi benefits in any way?
In reply to Is (non professional) by Toni (not verified)
Hi Toni,
Hi Toni,
I'm not sure if that constitutes as earned income, however it shouldn't affect your SSDI benefits.
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