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Inheritance & Social Security Benefits

Updated March 21, 2017

The Social Security Administration provides monthly, monetary benefits to retired individuals. It also provides benefits to disabled individuals through two different programs: the Social Security Disability Insurance program and the Supplemental Security Income program. If you receive an inheritance, your retirement benefits and SSDI benefits will not be affected. If you receive Supplemental Security Income, however, an inheritance will affect your benefits.

The Supplemental Security Income Program

The Supplemental Security Income program provides monetary benefits to individuals who are unable to work due to being blind, elderly or disabled. The benefits are designed to help provide for an individual's monthly basic necessities. The program is income-based and the amount of benefits a person receives is directly related to the amount of income a person earns as well as the total amount of resources in her possession.

Effects on Montly Income

You are only permitted to have a monthly income of £650 and be eligible for Supplemental Security Income, as of 2010. The income threshold is raised to £1,066 if you are blind. An inheritance is considered additional monthly income and must be reported to the Social Security Administration. The Social Security Administration will adjust your benefits accordingly, and, in some cases, could rule you are ineligible to receive future benefits due to the amount of the inheritance.

Effects on Resources

You are only permitted to have £1,300 in resources to be able to receive Supplemental Security Income benefits, as of 2010. If you get an inheritance of property or money the inheritance becomes part of your resources and could possibly make you ineligible to receive future benefits.

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About the Author

Michelle Cagle began writing in 1994 and has had articles published on various websites. She writes primarily about educational issues, society and cultural issues, and home and family issues. She received her Master of Education from Oklahoma State University and her Bachelor of Education from Northeastern State University.