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  1. #1
    Join Date
    May 2010
    Posts
    588

    Default SSDI and Inheritance

    I have been on SSDI for 11 years fully disabled....My very elderly Mom is redoing her will.....She was told by her lawyer that something different and special has to be drawn up for me because of my situation?

    I googled it on SS website, everything was over my head......any one deal with something like this before or have any knowledge?

    Thanks

  2. #2
    Join Date
    Oct 1971
    Posts
    5,046

    Default Re: SSDI and Inheritance

    An inheritance will have no affect on your SSDI, it's not an income based benefit.
    It may affect your SSI (state supplemental benefits) if you're receiving help paying your Medicare deductible or getting food stamps.
    For the little help you get from Supplemental Security Income (SSI) it's well worth the trade off.

    Here's a clear explanation.

    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 2017, SGA is considered to be earning $1,170 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.
    https://www.disability-benefits-help...heritance-ssdi

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

  3. #3
    Join Date
    Feb 2007
    Location
    831 East Morehead St., Ste 355, Charlotte, NC 28202
    Posts
    3,756

    Default Re: SSDI and Inheritance

    If you are getting SSI, a "special needs trust" would likely protect those benefits. That may be what he was thinking about.
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney and Board Certified Specialist in NC Workers' Compensation Law

  4. #4
    Join Date
    Oct 1971
    Posts
    5,046

    Default Re: SSDI and Inheritance

    Quote Quoting complwyr View Post
    If you are getting SSI, a "special needs trust" would likely protect those benefits. That may be what he was thinking about.
    Depending on his age, mental state and the type of assistance he's getting from SSI, that may be the best way to go.
    If he's of sound mind and not reliant on SSI, I would say the inheritance would be worth the loss of the little benefits SSI provides.

    Here's a good rundown on special needs trusts.

    Special Needs Trusts FAQ's
    What are special needs trusts?
    A trust is created when property (real estate, finances, tangible items) is managed by a person for another person's benefit. The person managing the property is called the "trustee." The person whose benefit it is for is called the "beneficiary". The trust lasts as long as it is needed. This usually means the trust will go on until the beneficiary's death or until the funds are expunged.

    Special needs trusts are made specifically for the benefit of disabled or mentally ill beneficiaries. These beneficiaries lack the mental capacity to manage their own finances. The trust is created with the specific needs, lifestyle, and future of the beneficiary in mind. Often times these special needs trusts are used to ensure that the beneficiaries don't lose government benefits they are receiving. The trustees of special needs trusts can be family members or, if an appropriate and trustworthy family member is unavailable, a third party will be appointed by the court. Choosing the right trustee must be done very carefully, especially for special needs trusts that are used for the benefit of a younger person.

    What are the benefits of special needs trusts?
    Often times, people with disabilities qualify for government assistance such as Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing. Many people make the mistake of leaving assets to their disabled loved ones through a will. This is problematic because acquiring assets, such as a lump sum of money, can disqualify your loved one for these types of government assistance programs.
    http://estate.findlaw.com/trusts/spe...sts-faq-s.html

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

  5. #5
    Join Date
    Mar 2018
    Posts
    1

    Default Re: SSDI and Inheritance

    If you're getting SSDI, you could be a billionaire and be entitled to disability benefits if you are disabled. Unlike SSI (which is a useful and essential program), SSDI recipients paid for the benefits through taxes. Inheriting a home will not affect your SSDI in any way. Like the other respondent said, there will probably be tax implications from inheriting a home so be sure to consult with somebody.

    Quote Quoting aryankhanna155 View Post
    If you're getting SSDI, you could be a billionaire and be entitled to disability benefits if you are disabled. Unlike SSI (which is a useful and essential program), SSDI recipients paid for the benefits through taxes. Inheriting a home will not affect your SSDI in any way. Like the other respondent said, there will probably be tax implications from inheriting a home so be sure to consult with somebody.
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