Can I Deposit an Inheritance Check Without It Interfering With My SSI Check?

Yes, you can deposit an inheritance check into your bank account. However, it may affect your Supplemental Security Income (SSI) benefits if the total amount in your account exceeds the allowable limits. This article will explore the specific resource limits, the importance of reporting, special needs trusts, and practical steps to consider when receiving an inheritance.

Resource Limits for SSI

Supplemental Security Income (SSI) has strict resource limits designed to ensure that recipients do not have excessive financial resources beyond what is necessary for their basic needs. As of 2023, the resource limits are as follows:

Individuals: $2,000 Couples: $3,000

These limits apply to the total amount of resources a beneficiary has, including cash, bank accounts, and other assets. If your total resources, including any inheritance received, exceed these limits, your SSI benefits may be reduced or terminated.

Reporting Requirements

It is crucial to report any changes in your financial situation to the Social Security Administration (SSA) promptly, including receiving an inheritance. Failure to report these changes may result in penalties or denial of benefits. It is always best to inform the SSA about any inheritance received to avoid any misunderstandings or unnecessary complications.

Special Needs Trusts

If you are concerned about losing your SSI benefits due to an inheritance, you might want to consult with a legal expert about setting up a special needs trust. A special needs trust is specifically designed to hold funds for an individual's benefit without disqualifying them from receiving SSI or other government assistance. By placing the inheritance funds in a special needs trust, you can ensure that these funds do not affect your eligibility for SSI.

Consulting Financial Advisors and Social Security Representatives

It is highly recommended to speak with a financial advisor or a representative from Social Security to better understand how your specific situation may be affected by receiving an inheritance. They can provide valuable insights and help you navigate the complexities of SSI eligibility rules and regulations.

Another suggestion is to open a savings account that is linked to your checking SSI account. This can be a smart financial strategy as savings accounts can earn interest, thereby making your money work for you. Regular monitoring of your account balance is essential to ensure that it remains below the SSI resource limits.

Actions You Can Take With the Inheritance

Here are some actions you can take with the inheritance money to avoid losing your SSI benefits:

Buy a house: If you do not already own a home, purchasing a house can be an eligible use of the funds. Open a self-settled trust: This type of trust allows you to manage the funds yourself while still maintaining eligibility for SSI. Open an ABLE account: An ABLE account is a tax-advantaged savings account focused on supporting individuals with disabilities. It can be a good option to save for future needs without affecting your SSI benefits.

The biggest thing you cannot do is give the money away. If you receive an inheritance check, it is crucial to use the funds in ways that do not disqualify you from SSI benefits. For more detailed information, you can refer to the official How Will Savings and Resources Affect My SSI Check? guide provided by the Social Security Administration.

In summary, while you can deposit an inheritance check into your bank account, it is essential to be aware of the SSI resource limits and reporting requirements. Consulting with a financial advisor or a Social Security representative can help ensure that you remain eligible for your SSI benefits during and after receiving an inheritance.