Can I Inherit Money and Property if I Am on Disability in Florida?

Question from sera, Can I Inherit Money and Property if I Am on Disability in Florida?

Answer from AI:

If you are receiving disability benefits and living in Florida, you may wonder how an inheritance might affect your benefits. The impact largely depends on the type of disability benefits you receive. Here’s a general overview:

Types of Disability Benefits

There are two main types of disability benefits in the United States:

1. **Social Security Disability Insurance (SSDI)**
2. **Supplemental Security Income (SSI)**

Social Security Disability Insurance (SSDI)

SSDI benefits are based on your work history and the amount you have paid into Social Security through payroll taxes.

– **Impact of Inheritance**: Generally, an inheritance does not affect SSDI benefits because SSDI is not means-tested. This means that your income and resources do not impact your eligibility for SSDI. However, if you invest the inheritance and it generates income, that income could potentially affect your benefits if it is considered substantial gainful activity (SGA).

Supplemental Security Income (SSI)

SSI is a needs-based program that provides financial assistance to individuals who are disabled, blind, or aged and have limited income and resources.

– **Impact of Inheritance**: Inheritance can affect SSI benefits because SSI is means-tested. If you receive an inheritance, it could push your resources above the allowable limit ($2,000 for individuals and $3,000 for couples as of 2023). This could result in a reduction or loss of SSI benefits.

Steps to Take if You Receive an Inheritance

If you are on SSI and receive an inheritance, you should take the following steps:

1. **Report the Inheritance**: You are required to report any changes in your financial situation to the Social Security Administration (SSA) within 10 days.
2. **Spend Down**: You may be able to spend down the inheritance on exempt resources, such as a home, vehicle, or medical expenses, to stay within the resource limits.
3. **Establish a Special Needs Trust**: Consider setting up a special needs trust (SNT). An SNT can hold the inheritance and allow you to remain eligible for SSI and Medicaid. The funds in the trust can be used for your benefit without affecting your eligibility for these programs.

Consulting a Legal Professional

Given the complexities involved, it is crucial to consult with a legal professional who specializes in disability law and estate planning. They can provide personalized advice and help you navigate the rules and regulations to ensure that your benefits are protected.

Resources

For more information, you can refer to the following resources:

• Social Security Administration – SSI Resources
• Social Security Administration – Disability Benefits

Remember, while this information provides a general overview, individual circumstances can vary greatly. Always seek professional legal advice to address your specific situation.