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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 2025, SGA is considered to be earning $1,620 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

Deedee (not verified)

I am currently receiving SSI disability benefits for myself and my child. I live with my boyfriend and we each pay into the monthly exspenses of our home. He provides more than I do because he has more money. Will I be penalized if he claims both myself and my daughter, who is not his child?

Wed, 01/24/2018 - 15:52 Permalink
Janet (not verified)

If i recieve medicaid and recieved an inheritance and didnt know i had to let medicaid know.What is the out come?

Fri, 01/26/2018 - 12:31 Permalink
Delilah (not verified)

My son receives SSI he is Autistic. My father passed away recently and I received a check from his life insurance will this affect my sons benefits if the check is over 10,000 I plan to give 6,000 to my mom to help her out as well

Fri, 02/02/2018 - 11:23 Permalink
Anni Bui (not verified)

My mother is on disability in the US. My father would like to buy a house in Vietnam. He wants to put my mothers name on the deed in Vietnam. They would like to travel back-and-forth from the states and to Vietnam every six months. If her name is on the deed in Vietnam, will it affect her disability benefits in the US because of ownership of a house?

Mon, 02/05/2018 - 12:22 Permalink
Susan (not verified)

My father is preparing his will and he needs an answer and reference for the following question; Two of my siblings are on SSDI and my dad wants to know if there is a certain amount of money his executor can provide them either monthly or yearly?

Sat, 02/17/2018 - 14:55 Permalink
Nick (not verified)

I live in a home my father owns for 4 years now which it will be left to me in his will. I am applying for ss disability since I can't work.what will happen if I'm left the home before I am accepted for ss or after I'm accepted . Will it hurt my case. I live in Michigan if that matters

Mon, 02/19/2018 - 23:21 Permalink
Eric

Hi Nick,

An inheritance won't affect you getting SSDI, however you should always be transparent with the SSA and let them know of any income you do receive.

Tue, 02/20/2018 - 15:24 Permalink
Sue (not verified)

I'm diagnosed with major depression ,personality disorder, and severe anxiety. When I applied for social security disability they said because of my lack of work history I'm only eligible for SSI. So I wanna know if I receive an inheritance will it affect my benefits? I am disabled so I don't understand why people with ssdi won't be affected but I will because of work history? I couldn't work because of my problems.

Tue, 02/20/2018 - 13:10 Permalink
Eric

Hi Sue,

If you are on SSI then it will affect your benefits because SSI is based off of your income. You can speak with a SSA representative to learn more.

Tue, 02/20/2018 - 15:20 Permalink
DM (not verified)

Hi--if my brother was receiving SSDI when he passed away. He had received an inheritance and purchased a truck for cash with part of it and put the rest in a trust. found out i am on the title of the of the truck as TOD transfer on death....do i legally inherit the truck if he was on ssdi? what about if he was on SSI.

Tue, 02/20/2018 - 16:21 Permalink
Maureen (not verified)

I only make 9,765.00 a year with SSDI which qualifies me for medicaid, (I already have Medicare). However I have inherited a trust and wonder if that will affect my chances for Medicaid.
Please comment
Thanks

Wed, 02/21/2018 - 22:23 Permalink
Nohea (not verified)

My spouse applied for SSI benefits being he turned 62 (retired) early. He owns shares that will be paid to him in increments starting next year from his former employer. Will his SSI be affected?

Thu, 02/22/2018 - 23:05 Permalink
help. (not verified)

while i was waiting for my ssi or ssdi.. i received a inheritance. about a year difference.. will that affect my ssi or ssdi

Sat, 03/03/2018 - 20:32 Permalink
John 2 (not verified)

My wife is set to inherit 10, 000, dollars from her father. She has no iob, no social security . I collect ssdi and ssi monthly. Question, will her in heritance affect my ssi??

Mon, 03/05/2018 - 13:51 Permalink
Marie (not verified)

My Question is if you have a payee for your ssi and have money from a estate coming to you can you put yourself as the executor in charge of money for daughters or do i have to let my payee do it..

Mon, 03/05/2018 - 18:46 Permalink
Eric

Hi Marie,

That's a great question, I would recommend asking a Social Security representative regarding that. You can speak with one by calling 1-800-772-1213.

Tue, 03/06/2018 - 16:02 Permalink
tracey (not verified)

i was screwed in my divorce in a a marriage of over 25 years by laywers and x, i am now living on whats left of part of his retirement i recieved ,and have some inheritance, in otherwords i am living now on my svings account, i got 5 and ahalf years alimoney, signed in mediation, when i was very ill, can please someone tel me , i have been very ill still over all this the divorce was 2012 can i get any benefits , plmk asap im losing my mind worrying about this . am i able t get benefits nowor later , i never worked was a homemakeri am 57 and very concerned bbout my futiere and the wrong that was done to me please help

Tue, 03/13/2018 - 13:39 Permalink
Silvia (not verified)

I will start collecting my SS starting next month. I just inherited a lum sum of money from my moms house. Will this decrease my monthly SS ck? I’m 69.5 yrs old.

Tue, 03/13/2018 - 16:39 Permalink
Karen N. (not verified)

Our son receives SSDI for a lifelong, early diagnosed disability. If we pay off the house at our death will that affect our sons SSDI payment? Also in the mix is that my husband will take retirement soon and our son, I believe is entitled to a portion of his SSI. Will that affect the need based portion of what our sons payment is if we pay off the house he is in?

Wed, 03/14/2018 - 15:19 Permalink
Michael Christiani (not verified)

I have been on SSD for 6 years..I receive $290.00 and $480.00 twice a month. I have a bank account and if I chose a savings account. I received a check from my late fathers life insurance policy For around $39,000.00 am I going too lose one of my benifit checks if I deposit the check into my account.

Thu, 03/15/2018 - 19:49 Permalink
Pete (not verified)

I am currently applying for ssdi because I have small cell lung cancer and I'm no long able to work. Through my employer I have a life insurance policy. Because of special circumstance "I'm terminal" I was able to receive 75% of the policy's value. Will receiving this money affect my ability to receive ssdi?

Fri, 03/16/2018 - 22:30 Permalink

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