Comments on: SSI, Settlements/Inheritance, and Special Needs Trusts

By: Name

Name — Fri, 11 Sep 2009 15:27:21 +0000

Can you please tell me how long after a person dies and you are receiving a small inheritance do you have to let SSI know? Nothing has yet been done with the will. Thanks so much

By: barbarapfeifer

barbarapfeifer — Thu, 03 Sep 2009 21:12:39 +0000

if we set up a special needs trust for our daughter who draws ssi in the state of ca, how can the funds be distributed without her loosing ssi and medicaid. what can the money we leave her be used for. thanks
bp in arkansas

By: TomaszStasiuk

TomaszStasiuk — Thu, 09 Jul 2009 16:14:12 +0000

I can't think of any situation where an inheritance would affect eligibility for SSDI benefits. However, it *can* effect (even stop) SSI benefits. The above article discusses this.

I cannot answer the question in your case as I do not provide legal advice through this site. I encourage you to speak to a lawyer in your area to see how the inheritance will affect you.

All my best.

By: JoAnn

JoAnn — Thu, 09 Jul 2009 04:49:45 +0000

Can I inherit money and still receive my disability

By: TomaszStasiuk

TomaszStasiuk — Tue, 30 Jun 2009 02:15:11 +0000

Social Security is a national program with a national set of rules. However, court rulings from the District Court of Appeals only apply within that district, unless they are adopted by Social Security. Also, SSI interacts with state laws causing some differences among the states.

Helpful? Probably not.

Pat, I imagine you have *specific* question, which I would not be able to answer because I cannot provide legal advice through this site, only general information.

Call a local attorney, and ask him or her the real question on your mind. You may need to go in for a consultation (which is usually free). Attorneys want to help you; give them a chance.

By: Pat Duval

Pat Duval — Mon, 29 Jun 2009 18:30:38 +0000

Is the State of Missouri under the same rules as Colorado?

By: Dannie

Dannie — Sun, 04 Jan 2009 15:10:55 +0000

Hello,
I currently receive SSI and I am going to be receiving monthly unearned income from a realtive that exceeds the SSI amount. I will be reporting the income next week, I prefer to get off SSI altogether, if they offer me the PASS and the trust fund, can I deny those options? I have heard too many horror stories of overpayments and these accounts not going well. I will also be getting help from my relative for medical expenses.

Thank you

By: TomaszStasiuk

TomaszStasiuk — Wed, 31 Dec 2008 21:23:06 +0000

I appreciate your input on this.

In the second example (renting out the property), wouldn't the *value* of the house/land still be a problem for SSI eligibility beyond the amount you receive as rent?

By: TomaszStasiuk

TomaszStasiuk — Wed, 31 Dec 2008 21:09:43 +0000

I don't disagree that if you “come into money” it will not impact your Title 2, aka Retirement, Survivors & Disability Insurance, aka SSDI, aka Disability Insurance (DIB) benefits. The focus of the article was the impact on Title 16 Supplemental Security Income (SSI benefits).

I appreciate your point about Section 8 and the FSS program. That is good information to have!

By: Terry

Terry — Wed, 31 Dec 2008 14:21:09 +0000

Assuming you mean SSDI by “social security disability” – the $ will have no impact. It is considered “unearned” income which is not really counted for SSDI. Plus, there are no asset restrictions for SSDI, so you're good there too.

Section 8 is another story. I'd talk to your HUD worker about that. There may be some shelters for you to use. Ask them specifically about the Family Self Sufficiency (FSS) program. This may allow you (if they allow for the unearned income to be invested) to put money away into an escrow account to be used towards a house in the future. Your current section 8 arrangement staying the same.

By: Terry

Terry — Wed, 31 Dec 2008 14:14:56 +0000

If you're on SSI….and this becomes your home/primary place of residence and you do not own any other home, then you have nothing to worry about. 1 home is an asset exclusion for SSI (along with a some other things).
You're good to go.

If you are already living somewhere and you inherit the property and do not intend to move there – then it could be considered an asset eventually. I'd recommend checking with your local WIPA.

A thought/way out of this would be if you inherited the property and were already living on another property that you owned…..you could rent one of them out. The rental income you receive would be considered self-employment and the house you are renting out now becomes Property Essential for Self Support (PESS) – which is an asset exclusion under SSI.

By: Brenda

Brenda — Tue, 16 Dec 2008 20:03:17 +0000

I am on social security disability. My 'real' father's estate has a small amount left for me and I don't know if it is 25,000.00 or a little more, but I want to know how it will effect me. I am on section8 and I am afraid it is really going to mess me up. Please email me as to what to do.
Sincerely,
Brenda
BSutton55@yahoo.com

By: TomaszStasiuk

TomaszStasiuk — Fri, 14 Nov 2008 21:16:54 +0000

Hi, CJ, I tried to contact you privately, but your email address went to the wrong person. Here is the message:

Hi CJ

Thanks for your comment!

You a very fact-specific question. The Social Security Insider site can only provide general information. I cannot perform case evaluations via email or comments.

Social Security should be able to tell you whether the home will affect your benefits or not.

If you want to get an idea of what the answer might be BEFORE contacting Social Security, Paul Niditch paul@paulnidich.com http://paulnidich.typepad.com/about.html might be able to help.

I wish you the very best.

Tomasz M. Stasiuk
http://www.SocialSecurityInsider.com

A Whole Mess of Legalese:
Information contained on the website and responses to comments and email is general information about the Social Security system and is not legal advice. The information on this site may not be appropriate for the specific circumstances of a particular case and should not be used without obtaining legal advice. For a review of the specific circumstances of your case, contact an attorney for a consultation. The Stasiuk Firm is available for consultations by telephone at (719) 630-1225 or (800) 407-016. No attorney-client relationship is formed via unsolicited communications with the website or office. No representation is provided without a validly executed fee agreement signed by the Stasiuk Firm and the client (or their representative). Phew!

By: CJ

CJ — Fri, 14 Nov 2008 13:08:13 +0000

What if you inherit the family home that you've lived in all your life and plan to live in it the rest of your life? Have been on SSA/SSI all adult life. No other assets were inherited. Thanks!

By: TomaszStasiuk

TomaszStasiuk — Wed, 08 Oct 2008 14:49:11 +0000

Hi Terry,

Great point!

My understanding is that people who have 1619(b) status do NOT receive an SSI payment because of their earned income, BUT they are still considered SSI recipients for Medicaid purposes and can still receive Medicaid.

That is a very nuanced observation. Thank you for contributing!

By: Terry

Terry — Wed, 08 Oct 2008 11:49:34 +0000

Great blog!
One thing, and you are right when it comes to unearned income, this statement: “You have to be receiving at least $1.00 of SSI benefits to qualify for Medicaid benefits under Social Security.” – doesn't apply to earned income…well, you know what I mean.
I just hear that $1 thing a lot – but 1619(b) is rarely touted.

Anyway – great site.