How Does A Lump Sum Settlement Affect Social Security Disability – Are Your Benefits Threatened?
Many people across the United States depend on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) to support themselves. While the notion of coming into a lump sum of money, such as a settlement after a court case, sounds like it would only improve your financial situation, someone on disability may wonder if the money could affect their regular SSI or SSDI payments.
How Does A Lump Sum Affect Supplemental Security Income?
When someone comes into a large sum of money, like a settlement amount, lottery winnings, an inheritance, or other lump sum payment, their income increases. Supplemental Security Income is only issued to individuals with extremely limited resources, as it is a needs-based program. Since a court settlement or other lump sum of money increases a beneficiary’s financial resources, their SSI payments could be reduced, or they could even become ineligible for SSI.
Can You Receive Inheritance While on Social Security Disability Insurance?
An inheritance or other large sum, like a settlement, will not impact your SSDI benefits. This is because SSDI is paid out of the money an individual put into the Social Security System while they were working, prior to the onset of their disability. However, as already stated, an increase in income will affect SSI payments.
Protect Your Benefits – Contact Peña & Bromberg Today
If you have recently come into an inheritance or other lump sum of money and fear it could threaten your SSI benefits, reach out to our SSI lawyers in Fresno, CA. Contact us online to request a free consultation or when you call (559) 439-9700 today.