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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

Omar (not verified)

My son is on SSDI.WHEN I RECEIVE MY LAWSUIT.WILL THE SOCIAL SECURITY TAKE MY SON BENEFITS AWAY FROM HIM.THANKS

Sun, 03/18/2018 - 11:04 Permalink
Omar (not verified)

I'M SORRY IT SSI.IF MY SON IS ON SSI.WILL THEY STOP HIS BENEFITS.WHEN I RECEIVE MY LAWSUIT FROM MY CAR ACCIDENT.

Sun, 03/18/2018 - 11:10 Permalink
COLLEEN (not verified)

I JUST FOUND SOME PAPER WORK THAT MY HUSBAND HAS A SET ASIDE ACCOUNT IN SOCIAL SECURITY FROM A WORK INJURY.IT ALSO STATED IT IS REQUESTED THAT SOCIAL SECURITY
CONSIDER THE MONTHLY PAYMENT OVER THE BALANCE OF HIS LIFE EXPECTANCY.MYHUSBAND DIE OCT 20TH 2028

Tue, 03/20/2018 - 06:39 Permalink
laurie (not verified)

My mother passed away and left an inheritance to myself and my brother who is on SSDI with Supplemental SSI a small amount around $100.00 a month for the SSI. I know that the inheritance will not affect the SSDI but will it do something to the SSI?

Wed, 03/21/2018 - 11:26 Permalink
Eric

Hi Laurie,

I am sorry to hear that. Yes it may affect that amount because SSI is based on income and they will take into consideration that inheritance as apart of his income.

Wed, 03/21/2018 - 16:48 Permalink
B (not verified)

Why should it matter if I receive an inheritance while on SSI? I worked for that SSI money, why should I be penalized????

Thu, 03/29/2018 - 04:21 Permalink
Debby Bichard (not verified)

Ten years of my income is missing from my file In 1980 I had a problem with income tax due to marriage and lost 10 yrs of my income some how . What can I do to find it

Wed, 05/16/2018 - 07:47 Permalink
Susan K Mendelsohn (not verified)

I am trying to help my brother, how do I tell what c
Kind of benefits he has, SSI, or SSDI. He is 57 and was given 100 percent disability. He is really confused and so am I?

Thu, 05/17/2018 - 17:58 Permalink
Eric

Hi Dorothy,

So the SSA (Social Security Administration) is the governing body that hands out Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

If you are on either program you have to report that income to the SSA.

Fri, 06/08/2018 - 14:18 Permalink
Juliane (not verified)

What happens if you’re on SSDI and your son gets SSI and you (the one on SSDI) is left an inheritance will that effect your son getting SSI? The inheritance is not in his (the son’s) name.

Thu, 06/07/2018 - 21:53 Permalink
Eric

Hi Juliane,

It would only affect his SSI if he were to receive money from it. However, just to be safe, I would recommend speaking with a SSA rep regarding this matter.

Fri, 06/08/2018 - 14:17 Permalink
brewer, sue ellen (not verified)

My mother has put my brothers future inheritance in my name so he does not loose his SSDI. But will that make me loose my SSI? Also, do you loose it for only one month when you receive the inheritance no matter how much the inheritance is or do you loose it for a longer period of time?

Fri, 06/15/2018 - 10:47 Permalink
Eric

Hi Kelly,

That's a good question. I can't say for sure who would actually receive it in their bank account, but he would be in charge of handling the money for you.

Fri, 06/15/2018 - 14:42 Permalink
bill0341 (not verified)

my mother in law is the beneficiary of some life insurance policies for her now deceased husband. will this affect her ssi?

Sat, 07/07/2018 - 16:30 Permalink
Eric

Hi There,

It's possible, because SSI is based on income and the SSA will take into consideration those life insurance policies as apart of her income.

Mon, 07/09/2018 - 16:48 Permalink
Eric

Hi Steve,

Once you turn 66, your SSDI benefits will convert to regular retirement benefits and the amount you are getting from SSDI will not change.

Tue, 11/20/2018 - 16:54 Permalink
Patti (not verified)

My brother receives SSI. He about to inherit some money. If he receives that money and turns around and buys a home that month, how does that efffect his SSI?

Mon, 12/03/2018 - 16:11 Permalink
Eric

Hi Patti,

Since SSI is based on income, that inheritance may affect his SSI benefits. to the extent, I do not know exactly because every case is different.

Mon, 12/03/2018 - 16:30 Permalink
Rachael (not verified)

Was wondering, since I am on SSDI and I recieved an inheritance, is it possible to invest that money for future use. I know you cannot not have earned assets or investments, but what can be done with the money other than letting it just sit?

Tue, 12/18/2018 - 18:20 Permalink
rsg

Hi Rachael,

Inheritance will not impact your SSDI since SSDI is not a needs based program. Inheritance is counted as unearned income, only earned income (income from working) counts against you. On SSDI, you can also earn income from investments as it is considered unearned income as well.

Thu, 12/20/2018 - 09:51 Permalink
Barbara (not verified)

My sister was my mother beneficiarie on her pension it was only 623 left they gave a check and then made her pay all of it back out her ssi why.

Wed, 12/26/2018 - 21:59 Permalink
Eric

Hi Barbara,

It's because SSI is mainly a needs-based program based on income. Any additional income, no matter how small it is may affect someone's SSI benefits.

Fri, 12/28/2018 - 11:57 Permalink
Chrissy (not verified)

My mom just passed away leaving the home.Im on disability waiting for a double lung transplant...will moving into the home affect my disability income.and medicatijns ?

Thu, 12/27/2018 - 02:12 Permalink
Eric

Hi Chrissy,

I am so sorry to hear that. Fortunately, your SSDI will not be affected because it is based off of your condition and not income.

Fri, 12/28/2018 - 11:56 Permalink

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