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:

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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

Eric

In reply to by B (not verified)

Hello,

Hello,
There are some circumstances where you can receive SSI and SSDI benefits at the same time. I would recommend speaking with a SSA representative regarding your case: 1-800-772-1213

Best,
Eric

Wed, 05/10/2017 - 16:59 Permalink
Jane doe (not verified)

My mother passed away. Left

My mother passed away. Left her house to all her children to have. Live there when down and no where to stay. They can have somewhere to live. If one gets sad will it effect one Benifts?

Tue, 05/09/2017 - 22:43 Permalink
Eric

In reply to by Jane doe (not verified)

Hi Jane,

Hi Jane,

If someone is on SSI, then receiving inheritance such as property would affect their benefits. If someone is on SSDI, it would not affect their benefits.

Best of Luck,
Eric

Wed, 05/10/2017 - 09:29 Permalink
Tony (not verified)

My uncle left me 300.000 life

My uncle left me 300.000 life insurance but i recieve ssi will ssi take the money or i could get the money

Wed, 05/10/2017 - 00:03 Permalink
John doe3 (not verified)

If my grandmother died and my

If my grandmother died and my daddy died and l got my dads part of the inheritance and I receive ssi would they stop my ssi

Wed, 05/10/2017 - 15:31 Permalink
Eric

In reply to by John doe3 (not verified)

Hello,

Hello,

I can't say for sure if it would stop your SSI all together, but receiving inheritance may affect your SSI benefits.

Best Regards,
Eric

Wed, 05/10/2017 - 16:46 Permalink
Amy (not verified)

I have a gentleman friend who

I have a gentleman friend who has asked me to help him. He is 56 yes. old and was hurt in a Oil Rig accident 15 yrs which has rendered him unable to work since. At the time of accident a disability claim was filed and denied. Because his mother was more than financially stable, she was able to provide for him, so they did not file an appeal. Later months after accident he received a 40,000.00 settlement from Rig company. His mother has since passed leaving an inheritance payment to him of $560 a week and for his utility bills of his home, where he lives alone and owns free and clear, to be paid until his death. What affect will this income have if he was to reapply for disability now, and will it date back from when he first filed 15 years ago if he is determined eligible?

Thu, 05/11/2017 - 07:11 Permalink
Bryan

In reply to by Amy (not verified)

Hi Amy,

Hi Amy,
Your friend may not be eligible for benefits based off of his work record as the SSA requires SSDI applicants to have worked five of the last ten years. If he qualifies for income-based benefits, that inheritance may be counted as income.

Thu, 05/11/2017 - 12:05 Permalink
Edwards (not verified)

What if iam living in a car

What if iam living in a car at my parents house ,and they are on SSI .Can ,I get SSI if there not helping me with food or living conditions ,totally living by myself.

Tue, 05/16/2017 - 17:12 Permalink
Bryan

In reply to by Edwards (not verified)

HI there,

HI there,
You may be eligible for SSI if you meet the income and resource requirements, and you have a qualifying condition.

Wed, 05/17/2017 - 09:33 Permalink
Cher (not verified)

If inheritance was received

If inheritance was received $100,000 and invested in purchasing a home or a mobile home to live in would you lose your SSI benefits? Or if a home was left to you in your name instead of the hundred thousand dollars to purchase one would you lose your benefits?

Fri, 05/19/2017 - 09:10 Permalink
Eric

In reply to by Cher (not verified)

Hi Cher,

Hi Cher,

I can't say for sure if it would stop your SSI all together, but receiving inheritance may affect your SSI benefits.

Best Regards,
Eric

Tue, 05/23/2017 - 13:47 Permalink
Curious (not verified)

Hello, kind of a piggy back

Hello, kind of a piggy back question. I'm currently considered a trustee for a special needs trust. I do not receive any funds for managing the trust and the trust consists of properties. My father receives SSI and I am on total disability. Is the fact that I am a trustee going to affect my disability status? Not sure if you can answer but thought I'd give it a try.
Thanks!

Sun, 05/21/2017 - 09:01 Permalink
Eric

In reply to by Curious (not verified)

Hello,

Hello,

I would recommend speaking to someone at the SSA (1-800-772-1213) regarding your unique case.

Best of Luck!
Eric

Tue, 05/23/2017 - 13:49 Permalink
new dad (not verified)

I just found out I have an 18

I just found out I have an 18 year old son.... I have been on SSDI for 6 years..... I know he can't draw on my SSDI because of his age, but is he entitled to back pay from time I became disabled to when he turned 18??

Sun, 05/21/2017 - 23:52 Permalink
Eric

In reply to by new dad (not verified)

He may be eligible for back

He may be eligible for back pay, but I would double check with a representative from the SSA just in case. 1-800-772-1213

Best of Luck,
Eric

Tue, 05/23/2017 - 13:50 Permalink
Eileen (not verified)

Ok, heres my story, on 11/21

Ok, heres my story, on 11/21/2013 I had a brain hemorrage strokethatvleft has left me paralyzed on the left side. I applied for Ssdi and was denied because I had not contributed to SS in the las several years. i am now 62and had worked and paid in since I was 17 and in collegebut,sadly, that does not matter.I had no choice but to accept that those are the rules.my husband and I sold our house in NYin 2002 and moved. We started our own business in Colorado and never felt we could afford to put ourselves on the payroll, so that explains why I had not contributed in so many years. We had coffee kiosks in office buildings. My husband runs one and our daughter helps him.he also has a part time job to help us. When I had my stroke I was leaving my kiosk, it happened in the parking garage.i would like to get back to work, but I really can't safely prepare and serve hot coffee drinks for customers with one hand. You really need both hands to steam Milk. Recently ive been thinking about another angle. We did have an employee for part of that time and I went back and looked at some of the payroll records and it shows that we paid into social Securityand it appears that our employee'spotrion came right out of her pay and we made payments in also. What I'm wondering is if thae payment we made would or could go toward my credits or if they go toward the employee's credits

Tue, 05/23/2017 - 22:12 Permalink
Bryan

In reply to by Eileen (not verified)

Hi Eileen,

Hi Eileen,
I really could not say as we are not associated with the Social Security Administration or the federal government. You may want to contact the SSA at 1-800-772-1213 for more information regarding this.

Tue, 05/30/2017 - 13:23 Permalink
Jim (not verified)

Do I need to report an

Do I need to report an inheritance if I sign the check over to someone else? I will not be kerping the money or using it.

Wed, 05/24/2017 - 23:07 Permalink
Nathan and son. (not verified)

My son 13 yrs age is on ssi.

My son 13 yrs age is on ssi. I received inheritance from my mother. Do I have to report it. And how if so can I save the money without effecting his ssi?

Fri, 05/26/2017 - 18:17 Permalink
Bryan

In reply to by Nathan and son. (not verified)

Hi there,

Hi there,
It may affect his benefits, and you may have to report that income to the SSA. He may become eligible after you have exhausted the funds from the inheritance. Additionally, you may be able to set up a special needs trust for him, that would enable him to draw off the inheritance without the funds being counted as a financial resource.

Tue, 05/30/2017 - 16:35 Permalink
Anonymous (not verified)

In reply to by Bryan

EVEN IF THE INHERITANCE IS IN

EVEN IF THE INHERITANCE IS IN MY NAME ?

Wed, 05/31/2017 - 10:40 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
The SSA may not penalize someone for having a will, however if you are receiving an inheritance while on SSI, the SSA may change your benefits as the inheritance would be considered income for the first month, and a financial resource for months afterward.

Wed, 05/31/2017 - 14:00 Permalink
Anonymous (not verified)

MY HUSDAND IS ON SSDI. MY

MY HUSDAND IS ON SSDI. MY FATER JUST PASS AND I BE GETTING A HERIADENCE I WAS WANTING TO KNOW IF THAT WILL AFFET HIS SSDI,, I DO NOT WORK NOW BUT NO INCOME COMES IN FOR ME I DO GET MEDICADE AND FOOD STAMPS .

Wed, 05/31/2017 - 10:29 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
It may not affect his benefits if he is receiving SSDI benefits as those are based on work record rather than income.

Wed, 05/31/2017 - 14:01 Permalink
Mary (not verified)

If 76 yrs old on ssdi,

If 76 yrs old on ssdi, medicare and medicaid and have saved $7,000, but because now unable to take care of self and need permanent nusing home care will this money effect medicaid that will be paying for the nursing home care?

Sun, 06/04/2017 - 03:11 Permalink
Bryan

In reply to by Mary (not verified)

Hi Mary,

Hi Mary,
That may be the case, it may be a good idea to contact the office in your state that administers Medicaid, as they would be able to give you guidance regarding your state's rules and regulations.

Tue, 06/06/2017 - 12:30 Permalink
Mark (not verified)

what would I need to do when

what would I need to do when someone is abused by their payee

Mon, 06/05/2017 - 18:23 Permalink
Danielle (not verified)

My mom currently has stage 4

My mom currently has stage 4 lung cancer I'm on SSI I am the only child so if my mom was to leave me her car and the money in her account let's just say anything that is $30,000 or under What would that do would they completely take my SSI lower my payment I live in Orange County California I'm currently homeless so I receive a little bit more for not having access to cooking

Thu, 06/08/2017 - 14:02 Permalink
Eric

In reply to by Danielle (not verified)

Hi Danielle,

Hi Danielle,

I am so sorry to hear that. Unfortunately inheritance such as money or property could potentially lower SSI benefits or cancel them all together. It really depends on the case. Wishing you nothing but the best.

-Eric

Thu, 06/08/2017 - 16:42 Permalink
Michael (not verified)

I am drawing SSDI. I

I am drawing SSDI. I inherited my home when my parents passed away and is paid for. Recently my best friend passed away and left his home to me which has a mortgage. Will this 2nd home affect my disability income if I sell it. Or if I decide to keep it and rent it out will it have an affect?

Sat, 06/10/2017 - 06:29 Permalink
Eric

In reply to by Michael (not verified)

Hi Michael,

Hi Michael,

So sorry to hear that, but any inheritance including property will not affect your SSDI benefits.

-Eric

Mon, 06/12/2017 - 17:13 Permalink
moxie (not verified)

would a $3000.00 inhertience

would a $3000.00 inhertience affect someone on ssd & ssi ?

Tue, 06/13/2017 - 10:36 Permalink
Joyce (not verified)

I have SSDI. Im coming into

I have SSDI. Im coming into an inheritence trust. With my SSDI after a year I got medicare insurance. I realize my inheritence. will not effect them because I can't work. Im just afraid that I could lose my medicare. I got disability because of cancer in 07 they gave me three months I went to Moffitt Cancer and did all trails 70 grey for 35 days while 8 rounds of chemo at same time. I finally cancer free but let with chronic health problems and also chronic pain. Im getting a trust from my mom passing will I lose my medicare?
Do I have to report it to Social Security?

Thu, 06/15/2017 - 22:45 Permalink
Eric

In reply to by Joyce (not verified)

Hi Joyce,

Hi Joyce,

I am so sorry to hear that. Fortunately inheritance will not affect your Medicare. You should report any additional earnings to the SSA to be safe, but it will not affect your SSDI benefits. Wishing you nothing but the best.

-Eric

Fri, 06/16/2017 - 09:30 Permalink
Lore (not verified)

What am I allowed to spend my

What am I allowed to spend my inheritance on because I'm on SSI. Help please

Tue, 06/20/2017 - 21:20 Permalink
Carlos (not verified)

Hello so my dad died when I

Hello so my dad died when I was 15 I was get in ssd until I drop out of school so since I was20 or 21 been get in so now that I'm 26 I got a call talking about ssd they were telling me I could get more on ssd then ssi I get 735 now so how much would I get if he was maken 50 grand a year to 60 how much would it be a month for me if I was on ssd

Wed, 06/21/2017 - 13:29 Permalink
Eric

In reply to by Carlos (not verified)

Hi Carlos,

Hi Carlos,

I am very sorry to hear that. It's tough to say for sure. You might want to call the SSA at 1-800-772-1213 and speak to a representative.

-Eric

Wed, 06/21/2017 - 15:26 Permalink
Lisa Lamb (not verified)

I'm on disability ssi

I'm on disability ssi .How would inheriting the family home affect me?

Mon, 06/26/2017 - 18:01 Permalink
Sandi (not verified)

My 91 yr old mother is

My 91 yr old mother is wanting to leave money for her 3 great Grandkids. One is severely handicapped and won't need "education" money like the other 2 when she turns 18. She is on SSD and we are wondering how an inheritance will affect her coverage... or if the gov't will only be benefit cutting her off until the inheritance is used up. Does it matter what state they are in, or will the benefits be the same wherever they live. They have moved frequently.

Tue, 06/27/2017 - 16:08 Permalink
Jewels (not verified)

Hi my mom is applying for

Hi my mom is applying for social security because she will be turning 65 soon. She doesn't have a disability either. Will having a savings account make any changes to the amount she will be receiving?

Tue, 06/27/2017 - 22:28 Permalink
Eric

In reply to by Jewels (not verified)

Hi Jewels,

Hi Jewels,

I would recommend speaking to someone at the SSA regarding that. 1-800-772-1213.

-Eric

Wed, 06/28/2017 - 09:17 Permalink
Julie (not verified)

I have received disability

I have received disability since 1992 because i had a brain aneurysm and it caused a stroke. I receive medicaid and medicare that pay for my medical bills and some money too. If I get married will I still be able to receive my money and medical insurance? will the amount of income that my husband receives cause changes to my benefits?

Tue, 06/27/2017 - 22:35 Permalink

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