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

Submitted by Daniel on Fri, 12/20/2013 - 12:52

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 2020, SGA is considered to be earning $1,260 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

Robert g Watts (not verified)

What happens when a person dies that's on retirement and has a son under18yrs old would that child still be eligible for any money and how much.

Tue, 12/08/2015 - 18:05 Permalink
rsg

In reply to by Jose rodriguez (not verified)

Hi Jose,

You can check your awards letter to see which one you have. If you do not have a copy available, you can log into your MySSA account or try calling the SSA at 1-800-772-1213 to find out!

Thu, 07/18/2019 - 15:57 Permalink
Paul / Speakin… (not verified)

In reply to by John (not verified)

If I just got a slip and fall injury and since have settled , will I still be able to get my SSD payments along with my medicare ? I'm 58 years old now and it was a nasty fall injury which shattered my hip , and had to be completely replaced so which has left me not able to walk without a roller chair and or cane , doctor said NO to the working part of my life and and I am always in pain , so my question is what happens now. I should be able to still get my SSD and medicare , because they found the property to be neglagent. She isn't able to answer most of these questions due to kinda being a slow learner , putting it nicely , she is here for your records or whatever , now maybe I hope you understand my situation in helping her along thank you!

Wed, 08/21/2019 - 09:35 Permalink
mts

In reply to by Paul / Speakin… (not verified)

Hi Paul,

SSDI is based only on the work credits that you have earned while you were able to. Therefore any additional forms of income should not affect your payments or eligibility.

Wed, 08/21/2019 - 11:12 Permalink
Anonymous (not verified)

In reply to by Paul / Speakin… (not verified)

I know someone on SSI, and just inherited 2 homes and a quarter of a million Dollars. How will this effect him ? Not sure how much the homes are worth . Both are paid off and he is 58 years old in a wheel chair, due to drugs. 18 years ago.

Mon, 02/24/2020 - 14:45 Permalink
Skyla (not verified)

In reply to by Deanna

I was very worried I am currently on SSDI my mom passed away and left me a will of a little inheritance I was afraid to lose my SSDI because I need my medical and I need my SSDI because of my illness

Thu, 08/10/2017 - 13:23 Permalink
mts

In reply to by Celia Vaughan (not verified)

Hi Celia,

The SSA will see this as an income, and therefore will affect your benefits. However, there are options that you have to avoid your benefits being permanently stopped. I would recommend making an appointment with your local office and letting them know the situation.

Fri, 12/20/2019 - 14:00 Permalink
Eric

In reply to by Tracy (not verified)

Hi Tracy,

I can't say for sure how it will affect your Medicaid, but that inheritance could affect your SSI benefits.

Fri, 03/30/2018 - 13:42 Permalink
Anonymous (not verified)

In reply to by Eric

My boyfriend has me has his beneficiary through his employer of 35K. If he die and I get the check, will I lose my SSI?? My health insurance is more important to me to lose

Wed, 08/12/2020 - 12:26 Permalink
Patricia griffin (not verified)

In reply to by Tracy Chappell (not verified)

I am my sons payee he is on SSSI has been for a long time he has brain damage from a head I injury if I die and leave him money can he receive it without losing his check and medicare ins I have been told if I leave it to him if there is any left in his bank account it goes back to SSSI when he dies

Sat, 05/06/2017 - 11:25 Permalink
Irene miller (not verified)

In reply to by jackie (not verified)

I would like to purchase a home and I was wondering if I would get penalized if I have y if I would I have a house and then if I pass on and pass it down to my daughter which is on SSD and if she would pass pass it down to her son which is on SSI would it affect either one of ours income or would we have to sell it and get money back to use

Fri, 12/01/2017 - 19:26 Permalink
Bryan

In reply to by Irene miller (not verified)

HI Irene,
If someone is on SSI and receives a house, they may not be penalized if it is their primary residence or if they plan to use it as a primary residence.

Mon, 12/04/2017 - 09:25 Permalink
Billy Williams (not verified)

In reply to by Tracy Chappell (not verified)

I receive disability Social Security payments less than $1,000 a month if I inherit $100,000 and sell my house and move into a bigger house will I have to pay property tax on the new house? I will not say whether I pay taxes on my home now or if it is in someone else's name but I have been told I don't have to pay property tax on a new house if I buy one.

Sun, 11/19/2017 - 15:52 Permalink
B johnson (not verified)

In reply to by Tracy Chappell (not verified)

I get disability via social security, I’m 63 and married husband is 66 and recieves retirement social security. If I recieve life beneficiary of $100,000. How will it affect our benefits

Thu, 01/18/2018 - 16:41 Permalink

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