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
I'm on SSDI and was
I'm on SSDI and was wondering about taxes. My inheritance is coming from Connecticut and i live in California.
In reply to I'm on SSDI and was by Charles Sommers (not verified)
Hi Charles,
Hi Charles,
You may want to contact the executor of the estate, they would be more knowledgeable about your tax liability.
cousin with cerebral palsy is
cousin with cerebral palsy is on SSI, lives in rent subsidized building, received a 10,000 inheritance. Will she lose all her benefits because of this.
In reply to cousin with cerebral palsy is by Eileen (not verified)
HI Eileen,
HI Eileen,
She may still be medically eligible , however her financial eligibility for SSI may change. You may want to look into a special needs trust for the money:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
Hello,
Hello,
Great article. Do you have an official link that I can point my attorney to (ex: SSA website, IRS, etc) for information included in this article? My parents are preparing their will and I am on SSDI. Upon their death, my two siblings and I will be selling their home and property and I will be receiving an inheritance benefit. Since SSA considers inheritance unearned income and it will not affect SSDI, the attorney needs an official website in order to research the information you provided in this article.
In reply to Hello, by Carol K. (not verified)
Hi Carol,
Hi Carol,
You may be able to find this information on www.ssa.gov .
My son has been receiving ssi
My son has been receiving ssi his special needs . But I recently discovered my father left me money which I wasn't aware of .. how does this affect my son or me ? Will social security ask me to pay them back ?
In reply to My son has been receiving ssi by John doe (not verified)
Hi John,
Hi John,
Your son's benefits are based off of your income and resources, so a part of the inheritance will be counted as income for the month that you receive it and a financial resource for subsequent months after that. If they SSA determines that they have overpaid benefits to your son, they would ask for the money to be repaid.
If im on social security an
If im on social security an my boyfriend is to we are mentally disabled will they take are disability checks from us
In reply to If im on social security an by kathleen tolison (not verified)
Hi Kathleen,
Hi Kathleen,
The SSA may not take your benefits away simply due to dating. If you are living together, your benefits may change, however.
A couple of years ago my
A couple of years ago my mother passed away. At that time I received 1/3 of the estate, including a 20 year lease on a property good until 2020. At that time a LLC was set up for the lease payments to help distribute them to the 3 of us. We received $600/month from this lease. Recently a lease buyout was tendered and we received $758,000, half to be paid in 2016 and half in 2017. Out of that money a $58,000 mortgage will be paid off, any fees and expenses incurred in the settlement negotiations, etc. I need to know if this will affect my social security disability. I am now 64 years old. When I turned 62 1/2 I went onto medicare health insurance.
I need to know if or how this settlement will affect my disability?
In reply to A couple of years ago my by Gail Oleson (not verified)
Hi Gail,
Hi Gail,
If you're receiving disability based on your work record (SSDI) rather than disability based on your income (SSI), then you may have no change in your benefits. If you're receiving SSI benefits, then you may have a change in benefits as the money would be considered income for the month that you receive it and a financial resource for months after that.
Would my benefits effect me
Would my benefits effect me if im in my dads will far as a house and a car and truck thats in a legal will ?
In reply to Would my benefits effect me by Michelle (not verified)
Hi Michelle,
Hi Michelle,
If you have not received this property, it will not affect you. If you're on SSI and receive your inheritance, it may be considered income for the month you receive it and a financial resource for the months afterward.
If on SSDI and then start
If on SSDI and then start receiving child support and alimony is either of those amount suppose to be reported to SSA?
In reply to If on SSDI and then start by E. Gonzalez (not verified)
Hi there,
Hi there,
It may be a good idea to contact the SSA just in case you would have to report it.
My husband just retired and
My husband just retired and they are changing my adult so to said from sis....what happens if my husand does...if he is not eligible any longer for Dadi can he return to ssi
In reply to My husband just retired and by dona (not verified)
Hi there,
Hi there,
If your husband is retiring, his benefit amount would not change.
Hi, my dad is 78 years old
Hi, my dad is 78 years old and he is receiving SSI. He inherited some money and wants to put that money into buying a house, since he is renting now. Will that affect his SSI benefit.
In reply to Hi, my dad is 78 years old by Parisa (not verified)
Hi Parisa,
Hi Parisa,
That may affect his benefit, you may want to contact the SSA regarding buying property, they can help you plan out how to do it while least affecting his benefits.
I receive SSDI MEDI-cal and
I receive SSDI MEDI-cal and section 8 voucher in L A ( medi medi ) ok so I understand a lump sum will not affect my SSDI but I am going to receive 3,000 per month up to 200, 000 . Does section 8 require lump sum ? And what about medi cal im afraid to ether hide it or change it to lump sum
In reply to I receive SSDI MEDI-cal and by Anonymous (not verified)
Hi there,
Hi there,
You may want to contact the office in California that administers housing, and the office that administers Medi-Cal, as both programs would have rules specific to California.
My Dad is on SSDI and just
My Dad is on SSDI and just got a direct deposit in his bank from his previous employeer. Assuming it is for accrued vacation they never sent him a letter that he was due money does he need to report this? Also he had disability insurance on a loan they gave him a lump sum to be applied toward that loan, does he have to report that?
I will be receiving SSDI
I will be receiving SSDI benefits ,I have rental properties, will the rent I receive affect my benefits?
In reply to I will be receiving SSDI by James (not verified)
Hi James,
Hi James,
If you are receiving SSDI based on your work income, you should be all set and it won't effect your benefits.
Best Wishes,
Eric
If I am on Social Security
If I am on Social Security disability and I am also on Medicare/Medicaid which is helping me pay for my prescriptions and premium of the Medicare. If my mother dies and leaves me a large inheritance including property and money will it affect my Social Security monthly income and my benefits
In reply to If I am on Social Security by Greg centers (not verified)
Hi Greg,
Hi Greg,
It may, you may want to look into a special needs trust, as it can make sure you can keep both the benefits and have access to that money:
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
My husband is to recieve an
My husband is to recieve an inheritance within the next couple of months...he needs to file for his social security disability but we were told that if he files before receiving the inheritance the govt will take his inheritance. Is this true?
In reply to My husband is to recieve an by Jennifer (not verified)
Hi Jennifer,
Hi Jennifer,
I don't think that would be the case, the only thing that would happen (if anything) would be a denial of SSI benefits based on income and financial resources. If your husband is applying for SSDI benefits based off of his work record, then the inheritance may have no bearing on his application.
Can I tap into a an annuity
Can I tap into a an annuity while getting social security disability without being penalized or possibly losing benefits? Thank you
In reply to Can I tap into a an annuity by Sarah (not verified)
Hi Sarah,
Hi Sarah,
You may be able to, depending on what type of benefits you receive. If you're receiving SSDI, then you may be able to receive money from that annuity without a loss of benefits. If you are receiving SSI benefits, then your benefits may change as that annuity would be considered a financial resource.
If you collect disability,
If you collect disability, can you move in with a friend so they can help me.Can I rent my house out so I can pay them
In reply to If you collect disability, by Billie Williams (not verified)
Hi Billie,
Hi Billie,
Yes, all this may be possible, however you may want to contact your local SSA office regarding your particular case and how that would affect your benefits.
My father just recently
My father just recently passed away. My brother is diabled and is receiving SSI. I was informed that my brother could possibly draw my father's Social Security. Is that true? Also we will receive a little something from his job's insurance but since my brother has moved in I will need to renovate to give him a room. Can his insurance money go towards that?
In reply to My father just recently by Wana (not verified)
Hi Wana,
Hi Wana,
He may be able to qualify for benefits as a disabled adult child if he was disabled before the age of 22. Unless the insurance company restricts how the money can be used, you may be able to use those funds for renovation.
My wife's dad just past
My wife's dad just past and she's on sis and going to inherit 18 acres of land that her noble home has been on since 1984 will this affect her sis if so do you think she needs to transfer the land to her kids name
In reply to My wife's dad just past by Harold (not verified)
Hi Harold,
Hi Harold,
It may affect her benefits if she is receiving benefits based on her income, it may be a good idea to contact the SSA regarding what type of benefits that she receives.
My wife's dad just past
My wife's dad just past and she's on sis and going to inherit 18 acres of land that her noble home has been on since 1984 will this affect her sis if so do you think she needs to transfer the land to her kids name
In reply to My wife's dad just past by Harold (not verified)
Hi Harold,
Hi Harold,
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.
Best Wishes,
Eric
Hello. I am on SS disability
Hello. I am on SS disability and a friend wants to give me a car. Would this affect my ssdi, and am I required to report it? Or should I 'buy' the car from my friend for say, $10 or something so that it is not considered a 'gift' ? Thanks much!
In reply to Hello. I am on SS disability by Cathy (not verified)
Hi Cathy,
Hi Cathy,
If you're receiving benefits based on your work record, your benefits may not be affected by receiving a gift.
Can you collect ssd and EDD
Can you collect ssd and EDD when you're not working.
In reply to Can you collect ssd and EDD by Jerry (not verified)
Hi Jerry,
Hi Jerry,
If EDD benefits are unemployment benefits, then no, as Social Security Disability benefits are for people who are permanently unable to work a sufficient amount, and unemployment benefits are for people who are unemployed.
My sister applied for
My sister applied for disability and needed me to fill out paperwork vouching for her disability. I knew nothing of her issues, i.e., if they were true or not, so she wrote out the form and had me copy it in my hand and sign my name. I would now like to recant this because I know it was the wrong thing to do. Please advise. Will I somehow be help responsible and be criminally punished and/or prosecuted?
In reply to My sister applied for by Marybeth (not verified)
Hi Marybeth,
Hi Marybeth,
You would need to either go to your local SSA office and schedule an appointment or speak to a representative on the phone. The phone humber is this: 1-800-772-1213
Best Wishes,
Eric
if I get a disability, and I
if I get a disability, and I get inheritance from my parent will I affect it?
In reply to if I get a disability, and I by claudett (not verified)
Hi Claudett,
Hi Claudett,
Receiving an inheritance will not effect your SSDI benefits.
Best Regards,
Eric
In reply to if I get a disability, and I by claudett (not verified)
Hi Claudett,
Hi Claudett,
If you're on SSDI disability benefits, then it would not affect your benefits. If you're on income-based SSI benefits, then that may affect your benefits.
My son is 48 years old and
My son is 48 years old and gets disability each month for a mental condition. I have a life insurance policy that lists him and his brother as beneficiaries. Will this affect his disability payment, his medical insurance, food stamps, etc.? Otherwise could I do a trust. I would rather he did not have all that money at one time anyway.
In reply to My son is 48 years old and by Jeanne M. (not verified)
Hi Jeanne,
Hi Jeanne,
You may want to set up a special needs trust for your son, if he is receiving SSI benefits, then his benefits may be changed due to income and financial resources.
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