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on SSD and will be receiving a small inheritance

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    on SSD and will be receiving a small inheritance

    I have heard that I will lose my SSD benefits if I accept an inheritance from my Dad who passed away. Is this true??

    #2
    Social Disabilty payments would not be affected, if you are getting SSI it may affect it as it is needs based.

    I could cause you to have to pay some taxes the year you get it.
    Plan for the future, but not too hard; it’s not your decision anyway

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      #3
      thanks

      I am on SS Disability for about 8 years. I do have to pay tax on 90%of my benefit. I am concerned because one of my Doctors told me I could lose my benefits, the most important being health benefits if I receive any inheritance, even this small.

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        #4
        If its SSDI, then no, your inheritance has no effect.

        If its SSI, then your inheritance counts as income ONLY for the month you receive it. Other than that no.

        Since its really doesn't effect your social security, i can't see how it would effect your medical benefits.

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          #5
          Special Needs Trust?

          I had a similar situation when my father passed away. If my brother and I would have sold his house, any assets that I received would have altered my medical benefits. I am on SSDI and DO NOT receive SSI; however, I do qualify for the Low-Income Subsidy for my Medicare Part D benefits.

          I was told to have my brother open a special needs trust on my behalf to hold those assets so I wouldn't lose my LIS Part D Benefits. We chose to keep the house and it's become my primary residence.

          But, paying 25% for your DMD, and then 100% when you are in the dounut hole, proves that it is well worth figuring out how to save any goverment benefits you may be recieving (SSI/Medicaid DEFINITELY AFFECTED; Low-Income Subsidy for Medicare Part D could be affected, SSDI/Medicare not).

          Best of luck!
          Life isn't about waiting for the storm to pass; it's learning to dance in the rain!

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            #6
            Hi Kathleen -
            I truly suggest you talk to a disability attorney. I know that's not fun but this is a big deal. I am in the gap before I get medicare. I had a substantial 401k and was told I would be uneligible to begin Medicare with that money. I would also not qualify for any goverment help until it was gone. I could have purchased a house with that money and I tried - until I realized that if I didn't have that money I would have no money to pay for medical bills -- my disability check is "too much" for me to qualify for Medicaid.

            Most of this information I obtained by asking medicare and medicaid - but I was not at risk of losing anything at that point. I didn't have to provide any personal information to get the answers.

            I'm grateful I found out about not qualifying for medicaid before I spent the money on the house, now I will hopefully have enough until Medicare kicks in.

            I wouldn't chance losing any kind of benefits you have, I would talk with an attorney. Hopefully Mr. Feingold can give you the information.

            Good luck. It seems so unfair for anyone getting disability or social security to have to forgoe monetary gifts or inheritance that could help them out with things they need, just so we/they don't lose what we/they have now.
            This music is the glue of the world Mark. It's what holds it all together. Without this, life would be meaningless

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              #7
              Hello, Kathleen H and everyone. An inheritance would not affect Social Security Disability Insurance benefits as it is not earned income, however, as mentioned, it can affect the needs-based SSI (Supplemental Security Income) benefits. Such a payment would be considered income when received and then an asset thereafter. You would need to check with Social Security regarding the affect upon your specific situation.

              Good points are made concerning the fact that an inheritance could affect any special help that SSA would provide with regard to Medicare Part D benefits and possibly any other needs-based assistance program. Certainly speaking with an attorney who practices in the area of special needs trusts would be advisable to determine whether any such plan would be helpful.

              Here is some information from SSA's website concerning Extra Help with Medicare Prescription Drug Care Costs - http://www.ssa.gov/prescriptionhelp/.

              Rich
              Attorney Richard Feingold concentrates his law practice in helping disabled individuals obtain the monthly Social Security disability benefits and health insurance that they need to survive. Although based in Chicago, Illinois, Rich helps disability claimants nationwide. He has been answering posts in this forum since June 11, 2003. Twitter handle: @RichFeingold.

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