Will inheritance affect my Social Security Disability Insurance (SSDI) payments?

Submitted by Daniel on

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.

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Blog comments

Betsy (not verified)

My severely autistic child

My severely autistic child receives SSI. I have been informed I may have an inheritance coming. I'm a little confused if my inheritance will effect his SSI. He qualifies for SSI due to his dissability (unlike adults that receive SSDI) but the family income determines how much he gets each month. So I'm guessing any money I receive regardless of the reason will impact my sons SSI?

Tue, 11/22/2016 - 17:48 Permalink
Angel (not verified)

I am on SSDI due to scoliosis

I am on SSDI due to scoliosis, on Medicare and California Medi-cal (IEHP).
My mother died and I am to get her life insurance of $200,000, an annuity of $200,000, and a share of the estate sale (house, etc). Its not in the will but my sister wants to handle my money and give me $1200 a month and pay my insurance, etc out of it. She says I will lose my SSDI & Medicare. I read that I won't if its given to me all at once for me to handle. My uncle is head executor, she is next. What is best for me & what is the best way for me to proceed. What would I do for medical insurance if she does this ? Thank you.

Sat, 11/26/2016 - 12:22 Permalink
Angel (not verified)

In reply to by Deanna

Thanks Deanna, I am still

Thanks Deanna, I am still trying to find out if its better to let her handle the money or turn it all over to me to handle as far as SDI is concerned. I know I will lose Medi-cal but I'm worried that I'll be taxed more if she gives it to me piecemeal, especially if I want to buy a big ticket item like a house or a newer car. I think she want to put most of it in the trust.

Sun, 12/11/2016 - 12:21 Permalink
Bryan

In reply to by Angel (not verified)

Hi Angel,

Hi Angel,
If you receive any income-based benefits, then your eligibility for those benefits may change due to the income. You may want to contact your local SSA office for more information about the ways it would affect your benefits.

Mon, 12/12/2016 - 16:09 Permalink
KK (not verified)

I am on Social Security

I am on Social Security Disability and my parents have an annuity that is coming due. They would like to give it to me, however I am concerned that it will affect my disability, or I will have to pay a lot of taxes because of it. They are both still living. Would this still be considered an inheritance? Any information would be greatly appreciated. Thank You.

Sun, 11/27/2016 - 16:47 Permalink
Deanna

In reply to by KK (not verified)

Hi there,

Hi there,
An annuity is a form of unearned income, so this would not affect your SSDI eligibility. As you mentioned, you'll simply need to pay taxes on it.

Mon, 11/28/2016 - 14:00 Permalink
DEB (not verified)

I have hiv since 1991 and I

I have hiv since 1991 and I am on a sec 8 and I get a check from SSDI and $112 on food stamps will I lose my sec 8 and I am on medicare n me decade will I lose it?

Thu, 12/01/2016 - 16:28 Permalink
Deanna

In reply to by DEB (not verified)

Hi Deb,

Hi Deb,
I do not think SSDI benefits should affect your food stamps! Do you have any other forms of income that could affect this?

Thu, 12/01/2016 - 17:00 Permalink
Shelny (not verified)

In reply to by Deanna

How does someone get

How does someone get disablity when they get out do anything they want to suppose to have a back back

Mon, 12/05/2016 - 16:53 Permalink
Bryan

In reply to by Shelny (not verified)

Hi Shelny,

Hi Shelny,
Disabilities may not be visible and as such it's hard to say why someone is not disabled,additionally it may be difficult for them to work but not do everyday activities.

Tue, 12/06/2016 - 12:37 Permalink
Tracey (not verified)

Hi..I am 49 yrs old and on a

Hi..I am 49 yrs old and on a disability pension..my father passed away and left me an inheritance of 200 thousand dollars which I got when I sold his retirement village unit..will this affect my disability pension. .I live in Victoria. .australia. .thanks

Mon, 12/05/2016 - 23:32 Permalink
Bryan

In reply to by Tracey (not verified)

Hi Tracey,

Hi Tracey,
I really could not say as we specialize in American Social Security Disability information.

Tue, 12/06/2016 - 12:38 Permalink
Jay (not verified)

In reply to by Bryan

Good evening,

Good evening,

I'm a spouse of a ssi recipient. And I'm expecting to receive a check from inheritance for less then 20000.
I assume I need to report it to ssi?
Or do I need to make a special expense trust and I still need to report.
Or what if I give it directly to my childrens school instead of owning them money?

Wed, 12/07/2016 - 20:09 Permalink
Bryan

In reply to by Jay (not verified)

Hi Jay, it may be a good idea

Hi Jay, it may be a good idea to contact the SSA regarding this, it would be counted as income for the first month and as a resource for any months after that. It may be possible to make a special needs trust as well, but giving the money away may make you ineligible for benefits.

Thu, 12/08/2016 - 10:00 Permalink
Mary ann (not verified)

I am on SSI, Medicaid and

I am on SSI, Medicaid and foodstamps. I live in a small house which is under my son's name. He wants to put me on as life estate. Taxes are high and being life estate will lower taxes with a disabled person on deed. If he plans to sell house in future can he write a letter to the Social Security administration stating that I won't get any proceeds from sale on house which I don't want anyway.

Wed, 12/07/2016 - 11:57 Permalink
Bryan

In reply to by Mary ann (not verified)

Hi Mary Ann,

Hi Mary Ann,
While owning the house may not disqualify you from receiving benefits, it may be a good idea to contact your local SSA office regarding this, they can give you some guidance as to your liability with selling the house.

Thu, 12/08/2016 - 10:04 Permalink
Carolyn (not verified)

I have a question not sure if

I have a question not sure if in the right section: My brother receives SSI and I am his representative. He has a son who he wants to get life insurance policy on him. He was told that he can not be his son's beneficiary. Is this true????

Fri, 12/09/2016 - 13:21 Permalink
Bryan

In reply to by Carolyn (not verified)

Hi Carolyn,

Hi Carolyn,
He may not be able to, it may be a good idea to contact your local SSA office regarding this, as they can give you the most accurate information regarding his benefits and how any type of life insurance would affect his benefits.

Mon, 12/12/2016 - 16:07 Permalink
Dawn (not verified)

My father just died on Dec

My father just died on Dec 1st and my mother is going to be getting his Insurance policy money soon. After funeral costs she will have $76,000 dollars. She is on SSDI and was told from Social Security she will no longer receive her benefits however now just my father's SSDI due to his being the highest amout :-( So sad. her income is drastically lower now however I need to know, if she recieves the insurance money and keeps it in her name in he accoutn will her SSDI check be lowered and or will they stop her check due to her "new money"? If her SSDI payment will not be lowered can she put the check in the joint account they have now or does she have to open a new account in just her name? Please help, the Social Security office will be calling her tomorrow.

Tue, 12/13/2016 - 12:58 Permalink
Bryan

In reply to by Dawn (not verified)

Hi Dawn,

Hi Dawn,
I'm sorry to hear about that! I can imagine it's been a difficult time for you and your family. If your mother is receiving benefits based on her income, called SSI benefits, then that money would be counted as a financial resource and would make her ineligible. If she is receiving SSDI benefits based on her work history, that money would not make her ineligible.

Tue, 12/13/2016 - 13:21 Permalink
Joshua (not verified)

What is the difference

What is the difference between SSI, SSDI AND SSBenefits

Tue, 12/13/2016 - 13:09 Permalink
Bryan

In reply to by Joshua (not verified)

SSI is an income-based

SSI is an income-based benefits program, SSDI benefits are based on your work history, and Social Security Benefits are work-based retirement benefits.

Tue, 12/13/2016 - 13:22 Permalink
Joshua (not verified)

My mom receives disability

My mom receives disability through Social Security and may have inherited something. I was told it isn't SSI, but I don't know. She got sick at work and had a brain aneurysm and a stroke. So can you please tell me which diabilty she has through Social Security?

Tue, 12/13/2016 - 13:16 Permalink
Bryan

In reply to by Joshua (not verified)

Hi Joshua,

Hi Joshua,
I really cannot say which type of benefits she is receiving because we are not affiliated with the SSA or the federal government and as such do not have access to that information. You may be able to call the SSA on her behalf for this information, you can do so at 1-800-772-1213

Tue, 12/13/2016 - 13:23 Permalink
Pattie Berry (not verified)

My son 29 years old got and

My son 29 years old got and inheritance from grandmother. He draws Ssi. Do I need to report this

Sat, 12/17/2016 - 03:27 Permalink
Bryan

In reply to by Pattie Berry (not verified)

Hi Pattie,

Hi Pattie,
You may have to let them know, your son's inheritance counts as income for the month he receives it and a financial resource for the months afterwards.

Tue, 12/20/2016 - 13:22 Permalink
Sheryl (not verified)

If get an inheritance do one

If get an inheritance do one have to pay back all the SSI or SSDI.. Ever recieved? Does social security take back all they gave over the years?

Sat, 12/17/2016 - 23:01 Permalink
Bryan

In reply to by Sheryl (not verified)

Hi Sheryl,

Hi Sheryl,
Unless the SSA determines that they had overpaid you, you may not need to pay them back any funds you received from them.

Tue, 12/20/2016 - 13:23 Permalink
Darlene (not verified)

My husband died in 2012. I

My husband died in 2012. I recently applied for ssi, my question is, with me living off the remainder of his life insurance be counted as income for 2015 and 2016? I have had no other income. The money is now gone as the process is so long. But that is what I have lived off of. So is that counted as income?

Mon, 12/19/2016 - 00:15 Permalink
Lee Ann (not verified)

I recieve SSI and my mother

I recieve SSI and my mother just passed away I will be recieving a inheritance of approx 13,000 but i will also have to use alot of that money to settle estate, pay inhertiance, pay off her medical bills and credit card bills what ever is left i will beable to keep with ssi take proof of what i paid off and not penalize me for what i paid out and only take what i will have for me which will be apprx about 3,000 left?

Mon, 12/19/2016 - 10:23 Permalink
Bryan

In reply to by Lee Ann (not verified)

Hi Lee Ann,

Hi Lee Ann,
Your inheritance would count as income for the month you receive it and a financial resource for any months after. So if you spend it all in one month, then you may be able to retain your benefits. Financial resources are capped at $2,000.

Mon, 12/19/2016 - 17:12 Permalink
Terice Kirby (not verified)

If a person has been on SSDI

If a person has been on SSDI for 15 years, started receiving SSI for less than a year, then inherited money, would the inheritance potentially affect the SSI only and still leave the SSDI benefits intact, or does it affect all benefits as a whole? If it affects the SSI benefits only, does that entitle the SSA to take part of the inheritance (if not all), or does it simply stop or lower the SSI benefits?

Tue, 12/20/2016 - 18:48 Permalink
Bryan

In reply to by Terice Kirby (not verified)

Hi Terice,

Hi Terice,
That inheritance would only affect the SSI benefits, not the SSDI benefits.

Wed, 12/21/2016 - 15:13 Permalink
Pam (not verified)

Can my grandson who receives

Can my grandson who receives SSI lose his benefits if his mother inherits a piece of property, that is also in my name.

Fri, 12/23/2016 - 18:38 Permalink
Bryan

In reply to by Pam (not verified)

Hi Pam,

Hi Pam,
If the mother inherits the land, it can be considered a financial resource by the SSA.

Tue, 12/27/2016 - 11:45 Permalink
Missied (not verified)

I gave a friend $20,000 who

I gave a friend $20,000 who is on social security. Will that affect him?

Sat, 12/24/2016 - 14:49 Permalink
Bryan

In reply to by Missied (not verified)

Hi there,

Hi there,
If he is receiving benefits based off of his income and financial resources, then yes, it may affect his benefits.

Tue, 12/27/2016 - 11:46 Permalink
Sherry Baker (not verified)

i receive ssi,ssd and

i receive ssi,ssd and recieved a check from my dad Inheritance for 2,500 will that effect my checks? and do i need to report it?

Tue, 12/27/2016 - 23:22 Permalink
Bryan

In reply to by Sherry Baker (not verified)

Hi Sherry,

Hi Sherry,
That check would affect your SSI benefits, and yes, you do need to report it. It would be considered income for the month you receive it and a financial resource for the month after that.

Wed, 12/28/2016 - 11:43 Permalink
Claiming Out o… (not verified)

I am in the Pacific Northwest

I am in the Pacific Northwest. My late father was originally from Pennsylvania. Earlier this year I was contacted by and Oil & Gas firm that I (and other descendants) was named as an heir from my great-great grandparents mineral interests. They long since sold the land but retained the mineral interests. I signed a drilling lease with the company a few months ago and in December I received a one-time payout of around $1,860 with 15% future production royalties when they start drilling sometime in 2017. With that lease was a W-9 which I'm assuming I'd have to pay taxes for misc. income? They said monthly production royalties could average anywhere from $200 to as low as $50 a month. The lease is for 5 years. My question to you is do I need to declare this/the $1,860 to SSI? What about the W-9? I've already spent a good portion of that on vehicle repairs and insurance. I want to make sure that everything is above board if I need to declare this or not. Your accurate advice is appreciated. Thank you.

Thu, 12/29/2016 - 11:09 Permalink
Bryan

In reply to by Claiming Out o… (not verified)

Hi there,

Hi there,
It's a good idea to contact the SSA regarding this, regardless of what type of benefit that you receive.

Thu, 12/29/2016 - 14:26 Permalink
Claiming out of.... (not verified)

In reply to by Bryan

Thank you Bryan for your

Thank you Bryan for your response. I was hoping you could be a bit more specific prior to me contacting SSA since it is my understanding that anything under $2000 does not have to be reported to SSA re my SSI. If you can fill in any of the blanks to the following earlier post, that would be appreciated. Thank you. Here's my earlier post: I am in the Pacific Northwest. My late father was originally from Pennsylvania. Earlier this year I was contacted by and Oil & Gas firm that I (and other descendants) was named as an heir from my great-great grandparents mineral interests. They long since sold the land but retained the mineral interests. I signed a drilling lease with the company a few months ago and in December I received a one-time payout of around $1,860 with 15% future production royalties when they start drilling sometime in 2017. With that lease was a W-9 which I'm assuming I'd have to pay taxes for misc. income? They said monthly production royalties could average anywhere from $200 to as low as $50 a month. The lease is for 5 years. My question to you is do I need to declare this/the $1,860 to SSI? I thought anything under $2000 means I do not have to report this to SSI. What about the W-9? I've already spent a good portion of that on vehicle repairs and insurance. I want to make sure that everything is above board if I need to declare this or not. Your accurate advice is appreciated. Thank you.

Tue, 01/17/2017 - 06:54 Permalink
Bryan

In reply to by Claiming out of.... (not verified)

Hi there,

Hi there,
The SSA does need to know about any income that you make while receiving SSI benefits, asSSI benefits are income based.

Tue, 01/17/2017 - 09:15 Permalink
Joy (not verified)

Hello Daniel,

Hello Daniel,

That's my late father's name BTW. My mother died suddenly on Dec 22nd. I am on SSDI. When I worked for 9 months from 2014-2015, my Disability payments increased by about $35 and my SSI payment decreased the same amount. I was told just tonight, that my mother left a 401K that will be disbursed from her former employer amongst my siblings and me. So will the SSI be reduced to zero and my disability stay at current payment? I am more afraid of losing my health benefits than anything.

Wed, 01/04/2017 - 01:10 Permalink
Bryan

In reply to by Joy (not verified)

Hi there,

Hi there,
If you're receiving SSDI disability benefits, then those would not change, if you're also receiving SSI, then you may lose those benefits as the money from your mother's 401k would be considered income for the month you receive it and a financial resource for any months after that.

Thu, 01/05/2017 - 11:20 Permalink
Joy (not verified)

In reply to by Bryan

Ok I think I understand, but

Ok I think I understand, but I want to clarify... SSDI benefits are through the federal program under SSA, which includes the cash payment, Foodshare program, and health insurance/drug coverage through Medicare, correct? And those will not change? So if SSI is reduced... I get $102 on my SSI ... those would drop and would those then be put on the SSDI upping my payment or lowering, or is it eliminated altogether? Also, I receive Medicaid... which is a state insurance program. I would assume that I will be off FoodShare... which I can understand, but what about the health insurance through Medicaid?

Thu, 01/05/2017 - 16:57 Permalink

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