What Happens to Your SSI if You Receive an Inheritance?
SSI has strict limits on your assets. You cannot have more than $2,000 in assets if you are single, or $3,000 if you are married. These limits haven’t risen in a long time.
If you receive an inheritance and your total assets go over those amounts, your SSI benefits can stop, even if the money is only in your account for a short time.
An inheritance does not only involve cash. It can include:
- Property
- Vehicles
- Investments
- Life insurance payments
All of these may count towards your SSI limit.
Typically, the Social Security Administration, which runs SSI, counts the inheritance as income in the month you receive it. After that, any remaining amount you still have is considered a resource.
This means:
- Your SSI payment may be reduced or stopped in the month you receive the inheritance.
- Later, you may no longer qualify for SSI benefits because your savings, property and investments are too high.
- You may have to reapply for SSI once your assets are back under the limit.
Timing matters in how the inheritance is handled. In some cases, if the money is used within the same month on certain approved expenses, it may not count against you going forward.
But for many people, the reality is that an inheritance will interrupt or stop your SSI payments.
It’s important to understand your options before making any decisions.
If you’re wondering how any part of your financial or health situation affects your eligibility for disability benefits, talk to the Tulsa disability lawyers at Troutman & Troutman. It’s free to have a conversation with our team.
Are There Ways to Protect SSI Benefits After an Inheritance?
In some cases, yes, there are ways to protect your SSI benefits after receiving an inheritance. These options must be handled carefully and done the right way.
One option is a special needs trust. This is a legal tool that allows funds to be held for your benefit without counting against SSI limits, as long as it is set up properly. These trusts must follow strict legal rules and are often required to be established before age 65.
Another option is an ABLE account. If your disability began earlier in life, you could place part of the inheritance into this type of account without affecting your SSI eligibility, within certain limits.
You may also be able to spend the money on certain necessary expenses without losing your SSI benefits. These expenses can include:
- Medical care
- Housing needs
- Paying off debt
In some cases, using the funds quickly and correctly can help you stay within SSI limits.
Not all situations allow for these solutions.
It is also imperative to compare SSI to Social Security Disability Insurance (SSDI).
SSI is based on financial need, so an inheritance can affect or stop your benefits.
SSDI is different. It is not based on how much money you have. It’s based only on your inability to work right now and having a work history that qualifies for the program.
If you receive SSDI benefits, an inheritance will not affect them. This is the case no matter how much you receive, as long as you are still unable to work due to your disability.
If you have enough of a past work history for SSDI, you could possibly switch from receiving SSI to SSDI benefits. You must meet the requirements for SSDI separately.
Having the right people to help you matters.
At Troutman & Troutman, we’ve helped more than 10,000 people across Oklahoma fight for financial stability after losing their ability to work.
We are here to help you through the disability claims process, help you understand your options, and help you take the best next step forward.
Wherever You Are in the Disability Benefits Process, We Can Help
You may be trying to determine if Social Security Disability benefits are right for you. You may be facing a long, complicated benefits application. Or you’ve applied and been denied. Now what? The Troutman & Troutman Oklahoma disability attorneys can help.
Disability Attorneys Answer Your Questions about Social Security
Your life has been disrupted by health problems. You’ve had to leave work. You’re worried about money. Social Security Disability benefits can provide relief, but they’re complicated. You’ve got a lot of questions. The Troutman & Troutman Tulsa disability lawyers have answers.
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