Can I Inherit a House on Social Security?
When you inherit a house from a deceased friend or relative, it may affect your ability to receive some government-sponsored benefits. Some programs consider inherited property to be a source of potential income, which can reduce or suspend your benefits. However, if you inherit a house while receiving benefits from Social Security, the implications depend on the type of benefits you receive.
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Social Security Retirement
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If you receive Social Security retirement benefits, you can't typically earn more than a certain amount of income during the year without reducing your benefits. At the time of publication, individuals below their full retirement age can't earn more than $14,160 per year, and individuals who have reached full retirement age can't earn more than $37,680 per year. However, Social Security doesn't include income resulting from inherited property in its earnings test, so inheriting a home won't affect Social Security retirement payments.
Social Security Disability Insurance
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Social Security Disability Insurance is available only to individuals who are unable to work. If you receive SSDI benefits, you typically can't earn more than $1,000 per month without affecting your payments. However, SSDI doesn't limit the amount of unearned income you can receive each month. Because inherited assets are unearned income, inheriting a home typically won't reduce or suspend benefits you receive under SSDI.
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Supplemental Security Income
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Supplemental Security Income is a need-based program that provides additional income to individuals with limited resources and little or no income from other sources. Individuals receiving SSI must also be disabled or older than 65. Because SSI is only available to individuals with financial need, it considers all types of income when determining your eligibility for benefits. As a result, inheriting any asset, including a house, could affect your benefits.
Considerations
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If you inherit a home while receiving SSI, Social Security regulations typically consider it income in the month you receive it, and you may not receive benefits for that month. If the value of the home raises your resources above the limit, owning the home may prevent you from receiving benefits for future months. However, if you own no other home and you move into the home you inherited, you may be able to exclude it from your countable resources.
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References
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