Social Security Disability Insurance (SSDI) benefits are designed to provide financial support to individuals who are unable to work due to a severe medical condition. When an SSDI beneficiary inherits money or property, it can raise questions about how this might impact their benefits.
The General Rule: No Impact
Generally, inheriting money or property does not directly affect SSDI benefits. The Social Security Administration (SSA) focuses on the beneficiary’s income and resources to determine eligibility and benefit amount. Inheritance, while a significant financial event, is typically considered a one-time occurrence and not a regular source of income.
Exceptions to the Rule: Resource Limits
However, there’s a caveat: SSDI beneficiaries are subject to resource limits. If the inherited assets, when combined with other resources, exceed these limits, it could temporarily impact benefits. These limits are relatively low and are designed to ensure that SSDI benefits are targeted to those who truly need them.
Key Factors to Consider:
- Type of Asset: The type of asset inherited can influence how it’s treated. For example, real estate might be considered a resource, while cash or stocks might be less impactful.
- How the Asset is Used: If the inherited asset is used to generate income, such as renting out property, the income could potentially affect SSDI benefits.
- State Supplemental Programs: Some states have additional supplemental programs that may have stricter resource limits.
Consulting with an Attorney
Given the complexities involved, it’s crucial to consult with an experienced Social Security disability attorney to understand how inheritance might affect your specific situation. An attorney can provide tailored advice and help you navigate the potential implications.
At Lemoine Law Firm, we understand the intricacies of Social Security disability law. Our knowledgeable attorneys can provide guidance on inheritance, resource limits, and other factors that may impact your SSDI benefits.
If you have questions about how inheritance may affect your SSDI benefits, contact us today for a consultation.
Attorney, Former Social Security Judge
Prior to entering private practice as a social security disability attorney in 1997, Peter J. Lemoine served as a Social Security Administrative Judge for seven years. His practice is devoted entirely to social security disability law, and he has helped thousands secure social security disability benefits.
