Understanding SSI and Asset Limits

Understand the SSI Resource Limits

SSI has strict limits on the amount of resources (assets) you can have and still be eligible for benefits. The SSA considers resources to be things like bank accounts, real estate, stocks, bonds, and other assets. As of 2025, the resource limit for individuals is $2,000, and for couples, it’s $3,000. Inheritance money is considered a resource, and receiving a large sum could push you over the limit, making you ineligible for SSI benefits.

What Happens if You Exceed the Resource Limit?

If you inherit money or assets that push you over the SSI resource limit, the SSA may temporarily suspend or terminate your benefits. However, this doesn’t mean you lose your benefits permanently. If you spend the inheritance on allowable expenses, such as medical bills or paying off debt, you may be able to restore your SSI eligibility.

Spend the Inheritance Carefully

To avoid losing your SSI benefits, you must spend the inheritance in a way that reduces your resources. Some expenses that can help include:

• Paying off Debt: Paying down credit cards, loans, or mortgages can reduce your resources and keep you within the SSI limit.
• Medical Expenses: Paying for medical bills, prescriptions, or healthcare costs will not count against the SSI resource limit.
• Home Improvements: If you own your home, you can make repairs or improvements without impacting your SSI eligibility.
• Purchasing Exempt Assets: The SSA allows you to buy certain things that are not counted as resources, such as a car or a burial plot.

Set Up a Special Needs Trust (SNT)

One of the best ways to preserve your SSI benefits after receiving an inheritance is to set up a Special Needs Trust (SNT). An SNT is a legal arrangement that allows you to set aside funds for your benefit without affecting your eligibility for needs-based programs like SSI. The money in the trust can be used for things like medical expenses, education, and other needs that aren’t covered by SSI. Be sure to consult with an attorney to set up an SNT properly to avoid violating SSI rules.

Report Your Inheritance to the SSA

It’s essential to report any inheritance or other changes to your financial situation to the SSA. Failing to do so can result in penalties, including having to repay any SSI benefits you received while over the resource limit. Be honest and timely in reporting any inheritance, and provide all necessary documentation to the SSA.

Understand the Impact on Other Benefits

In addition to SSI, if you receive other benefits, such as Medicaid, the inheritance may also affect your eligibility for those programs. Medicaid has its own resource limits, and if you go over those limits, you could lose your coverage. It’s important to be aware of how your inheritance could affect all of your public benefits and make adjustments as needed.

Consider Consulting with an Expert

Dealing with SSI and inheritance issues can be complicated, so it’s a good idea to seek professional guidance. An attorney or financial advisor who specializes in disability benefits and estate planning can help you understand the best way to handle your inheritance while preserving your SSI benefits.