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

Submitted by Daniel on

Table of Contents

  1. Will inheritance affect my SSDI benefits?
  2. Additional Resources

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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Additional Resources

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Blog comments

Robert g Watts (not verified)

What happens when a person

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
Deanna

In reply to by Robert g Watts (not verified)

The child will be eligible

The child will be eligible for up to 50% of the deceased beneficiaries' payment until the child hits age 18.

Tue, 12/15/2015 - 11:53 Permalink
ulepcorazon (not verified)

In reply to by Deanna

Will the child continue to

Will the child continue to receive after age 18 if she will attend full time college? What age it will stop

Mon, 11/06/2017 - 18:31 Permalink
Deanna

In reply to by ulepcorazon (not verified)

It will stop at age 19 and 2

It will stop at age 19 and 2 months if she's still in high school, but age 18 if she graduated high school and is in college.

Tue, 11/07/2017 - 08:35 Permalink
Shalisa (not verified)

In reply to by Robert g Watts (not verified)

I get disability benefits.

I get disability benefits. Would a small inhertance affect my monthly ssdi

Sat, 04/06/2019 - 22:42 Permalink
Jose rodriguez (not verified)

In reply to by Shalisa (not verified)

I get disability benefits.

I get disability benefits. But I'm not sure wish one SSDI or ssi

Thu, 07/18/2019 - 09:53 Permalink
rsg

In reply to by Jose rodriguez (not verified)

Hi Jose,

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
Tracy Chappell (not verified)

I was just curious if I was

I was just curious if I was to inherit anything with my benefits. & I get SSDI

Tue, 12/22/2015 - 18:44 Permalink
John (not verified)

In reply to by Deanna

Do I need to let SSDI know

Do I need to let SSDI know about the inheritance?

Mon, 04/11/2016 - 00:43 Permalink
Bryan

In reply to by John (not verified)

Hi John,

Hi John,
SSDI does not have limits on unearned income, so you do not need to report it.

Mon, 04/11/2016 - 09:41 Permalink
Jane M Heinrich (not verified)

In reply to by John (not verified)

I need to know this. I'm

I need to know this. I'm 64 and then my benefits will turn into social security benefits. Thanks

Sun, 09/11/2016 - 15:43 Permalink
Bryan

In reply to by Jane M Heinrich (not verified)

Hi Jane,

Hi Jane,
You're right! When you reach full retirement age, your benefits will convert to retirement benefits.

Tue, 09/13/2016 - 09:20 Permalink
Martha brown (not verified)

In reply to by John (not verified)

I get benfits from my husband

I get benfits from my husband death and 35.00 of ssi will inheritance money affect my benefit

Mon, 08/21/2017 - 07:53 Permalink
William B (not verified)

In reply to by John (not verified)

Will the Inheritance effect

Will the Inheritance effect my Social Security money ?

Tue, 04/03/2018 - 22:00 Permalink
William hill (not verified)

In reply to by Eric

If my inherit a house and I

If my inherit a house and I am on SSI would that be taken for me upon my death or can I leave it to a son

Sun, 04/29/2018 - 17:23 Permalink
Paul / Speakin… (not verified)

In reply to by John (not verified)

If I just got a slip and fall

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,

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

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
mts

In reply to by Anonymous (not verified)

Hi There,

Hi There,

An inheritance of that amount will generally be considered income and therefore if that is the case it will have an impact on SSI.

Tue, 02/25/2020 - 17:16 Permalink
Skyla (not verified)

In reply to by Deanna

I was very worried I am

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
Tracy (not verified)

In reply to by Deanna

What if you were on S.S.I.

What if you were on S.S.I. benefits. Will a lump sum of 25,000 dollars have to be reported. Can I just give it to someone else.

Thu, 03/29/2018 - 19:49 Permalink
Celia Vaughan (not verified)

In reply to by Tracy (not verified)

I receive SSI n am getting an

I receive SSI n am getting an inherentance of about 25,000 will my SSI be affected and about how much would I have to pay

Tue, 12/17/2019 - 20:34 Permalink
mts

In reply to by Celia Vaughan (not verified)

Hi Celia,

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,

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

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

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
Eric

In reply to by Patricia griffin (not verified)

Hi Patricia,

Hi Patricia,

Unfortunately any unearned income, including inheritance may affect his SSI benefits.

Best Wishes,
Eric

Tue, 05/09/2017 - 09:54 Permalink
jackie (not verified)

In reply to by Patricia griffin (not verified)

I am on SSI,, my mother is 92

I am on SSI,, my mother is 92 and if she dies and leaves me her house will I have to sell it and give the money to the SSI office???

Sat, 05/20/2017 - 13:42 Permalink
Eric

In reply to by jackie (not verified)

Hi Jackie,

Hi Jackie,

If you are on SSI, you should report any additional income (including property through inheritance) to the SSA.

Best
Eric

Tue, 05/30/2017 - 09:36 Permalink
Patricia (not verified)

In reply to by Eric

But, WILL they take your

But, WILL they take your house?

Sat, 02/10/2018 - 16:59 Permalink
Eric

In reply to by Patricia (not verified)

Hi Patricia,

Hi Patricia,

They cannot do that, but they could decrease or cut off your benefits all together.

Mon, 02/12/2018 - 16:46 Permalink
Irene miller (not verified)

In reply to by jackie (not verified)

I would like to purchase a

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
Eric

In reply to by Irene miller (not verified)

Hi Irene,

Hi Irene,

Since your daughter is on SSDI it will not affect her benefits, but since her son is on SSI, it could affect his.

Mon, 12/04/2017 - 09:18 Permalink
Bryan

In reply to by Irene miller (not verified)

HI Irene,

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
michelle stafford (not verified)

In reply to by Tracy Chappell (not verified)

i might inhurancr state chech

i might inhurancr state chech will i get my benefits

Mon, 05/29/2017 - 07:33 Permalink
Mark (not verified)

In reply to by michelle stafford (not verified)

I will be retiring soon at 62

I will be retiring soon at 62. Ive heard my company will be giving each person some money about $12,000 a person. I will be on my 7-8 month living on social security. will I be pentalized.

Mon, 11/06/2017 - 18:38 Permalink
Deanna

In reply to by Mark (not verified)

Are you working while

Are you working while receiving SSDI benefits? Either way, if you're on SSDI your retirement won't affect you so long as you're not retiring from a government position.

Tue, 11/07/2017 - 08:39 Permalink
Billy Williams (not verified)

In reply to by Tracy Chappell (not verified)

I receive disability Social

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
Manuel (not verified)

In reply to by Tracy Chappell (not verified)

I just got fully approved

I just got fully approved today for both ssi ssdi aunt died 4/17 inheritance due 1/18

Sat, 12/02/2017 - 01:33 Permalink
Bryan

In reply to by Manuel (not verified)

Hi Manuel,

Hi Manuel,
You may want to contact the SSA regarding this, as your eligibility may change due to the inheritance.

Mon, 12/04/2017 - 09:28 Permalink
B johnson (not verified)

In reply to by Tracy Chappell (not verified)

I get disability via social

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
Bryan

In reply to by B johnson (not verified)

Hi there,

Hi there,
It would only affect your benefits if you are reeceiving SSI benefits, which are income based.

Thu, 01/18/2018 - 16:57 Permalink

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